ISLAMABAD - After being blacklisted in public sector by PPRA, Chinese company, Dongfang Electric Corporation (DEC), is now eyeing private sector for energy generation projects.
Burj Wind Energy, a project of Burj Capital has applied for the grant of generation license in Nepra for a 13.5 MW Wind Power Project in Gujju, Sindh.
In its tariff application, Burj Power has submitted that request to proposal for various equipment of wind power plant were circulated but only two companies Dongfang Electric International Corporation and Hydrochina Huadong Engineering Corporation submitted their proposals. After thorough evaluation Dongfang was selected for the project. Company has acquired private agriculture land around 250 acres on lease of 20 years, extendable to another 10 years at Gujjo, Pir Jharion, Thatta, Sindh, which falls in Gharo-Keti Bander wind corridor. According to the company it has to sign an Implementation Agreement IA, with AEDB, and Energy Purchase agreement with National Transmission and Dispatch Company Limited (NTDC).
According to the documents the company attached with the power generation license application, the project cost would be financed by 75 percent loan while 25 percent would be equity. The equity would be provided by Burj Capital, while for loan company was negotiating with local banks that would provide 100 percent local currency financing to the project. The company believes that it would achieve financial close (financing) by 31st March 2015 and the tentative date for the commercial operation of the project would be June30, 2016.
Chinese Company DongFang was black listed in Pakistan after supplying faulty Railway locomotives to Pakistan, depriving national kitty of around $98million. Due to providing substandard supplies Dong fang was blacklisted by Pakistan Railways and Public Procurement Regulatory Authority (PPRA) on May 21, 2013, and uploaded the information on its website as a warning for other companies not to carry out business with the company.
It was alleged that heavy kickbacks were involved and quality and other specifications of the locomotives were criminally ignored just for the vested interest.
In this scam, NAB investigated former top government functionaries, including former Federal Minister for Railways Lt General (retd) Javed Ashraf Qazi, former Chairman of PR Lt Gen (retd) Saeed-uz-Zafar, Major General (retd) Hamid Hasan Butt whereas General Manager of Operations Saeed Akhtar were arrested, along with general manager and an additional general manager of Pakistan Railways for their alleged involvement in the scam. After Pakistan Railways, DEC’s low quality equipment was again held responsible after Rs. 59 billion Nandipur Power Plant’s first turbine stopped working hours after it was inaugurated by the Prime Minister Nawaz Sharif, in May this year.
Dongfang Electric Corporation (DEC), working under the direct administration of Chinese Central Government, was among top 500 companies of China in 2014 China top 500 Enterprise summit. No wonder the company’s first abroad hydro power plant was Chashma Hydropower Project of 1760kW. According to the company’s website most of the company’s hydro power projects are in Pakistan. PPRA spokesperson Waqar Hussain said that private sector does not fall in the jurisdiction of PPRA. He further clarified that Authority only publish names of the companies blacklisted by any departments. He said in case if any blacklisted company does business with any blacklisted firm, auditors have the authority to check it. When the scribe asked the Nepra officials that what does authority law says when a company is set buying equipment from a blacklisted company, as if NEPRA grant generation license, it would be used to apply for financing from local banks, the official said the authority would be discussing these matters in the public hearing scheduled on January 6, 2015.