HEC seeks relaxation in WB-funded PESCO project bidding criteria

ISLAMABAD: The Heavy Electrical Complex (HEC) has sought relaxation in bidding criteria of World Bank (WB) funded project in Peshawar Electric Supply Company (PESCO), Newzshewz has learnt reliably.
In this regard, HEC’s Chief Executive Officer (CEO) has approached World Bank’s Country Director and explained reasons of seeking relaxation in bidding conditions.
PESCO will undertake World Bank-financed procurement for 18 132/11.5 kV, 40 MVA power transformers and to recommend the inclusion of a specific clause in the bidding documents to allow fair participation of recently privatized national Enterprise-Heavy Electrical Complex (HEC).
According to the CEO HEC, the Company is well established, reputable and the only power transformer manufacturer in Pakistan with experience since 1998. It had supplied 340 power transformers including 40 MVA units to WAPDA, NTDC, K-E and all DISCOs. It has maintained a consistent track record of quality and performance with transformers operating reliably for over 25 years.
HEC has also claimed that not even a single field failure- All stake holders are fully satisfied with the performance of these transformers.
CEO is of the view that HEC underwent privatisation in January 2024. The process began in 2019, but earlier unsuccessful privatization attempts were made in 2007, 2011, 2013, and 2015.
These long-drawn processes caused: (i) administrative and financial instability ;(ii) reduced turnover and contract execution and; (ii) hindered ability to qualify under standard contractual and specific experience criteria.
He further stated that HEC, under new management, is now fully functional and financially sound and have access to adequate financial resources and active credit lines to support large-scale projects.
“With our production capacity of 2928 MVA, we can manufacture 70-75 units of 40 MVA transformers annually,” he said, adding that current World Bank qualification criteria (e.g., minimum turnover, recent specific contracts, technical experience, history of non-performing contracts) may lead to disqualification of HEC, the limitations which are not a reflection of HEC’s capabilities but are a direct result of the operational challenges experienced during the extended privatization process.
He stated that this would discourage private sector participation in Pakistan’s privatization program, a key reform initiative under the IMF program. It creates a conflict where the revival of strategic state-owned enterprises becomes impossible due to rigid eligibility thresholds that overlook their transitional period.
We respectfully propose the inclusion of a clause such as: “in case of recently privatized public entities, non-compliance with certain financial or contractual experience criteria during the pre-privatization period shall be assessed with due consideration to the privatisation process timeline, provided the bidder demonstrates historical technical capability operational performance and current financial and operational readiness.” CEO continued.
HEC is of the view that this clause will encourage private investment in Pakistan’s state-owned enterprises, allow technically capable firms with transitional challenges to compete fairly and reinforce confidence in the privatization framework and facilitate industrial revival. Ends