ISLAMABAD : Brushing aside the allegations of wrongdoing in coal procurement, Chinese Company, M/s Huaneng Shandong Ruyi(HSR), which owns 1360 MW imported coal-fired plant at Sahiwal, has accused certain individuals and companies of driven by vested business interests, have begun using improper means to discredit the reputation of HSR and employing this as a means of blackmailing, sources told in NEPRA told Newzshewz.
Chinese company, in communication with Chairman NEPRA has reference to the complaint shared by your office regarding the allegations raised by Noor Khan and Haider Sultan of January 10, 2024, has categorically stated that the Sinpa Commercial (SMC-PRIVATE) Limited or YONGTAI ENERGY PVT. LTD have never participated in HSR’s spot coal bidding. Moreover, the Sahiwal Power Plant has never procured coal from these two companies under any coal supply agreement, thereby invalidating the claims made by the complainant.
According to the Company, all coal procurements conducted by HSR have followed a competitive bidding process. The process included: (i) publishing of public notices of bidding in national newspapers ;(ii) acceptance of only fully sealed bids and ;(iii) opening of bids before all suppliers in attendance; and (iv) bid opening recorded on video.
Provided that all the conditions of the bid are met, no one can manipulate or influence the bidding outcomes. Consequently, HSR has always selected the bidder(s) who submitted the lowest price which is the fairest and most transparent bidding process.
Additionally, the bidding process adheres to rigorous internal controls, ensuring full compliance with the Power Purchase Agreement (PPA) and NEPRA’s tariff regulations and guidelines. Contrary to the claims made in the complaint, no company can be shortlisted for coal supply to our power plant without meeting the technical and commercial requirements specified in the bidding documents.
” Since the last few years, certain individuals and companies, driven by vested business interests, have begun using improper means to discredit the reputation of HSR and employing this as a means of blackmailing. This includes publishing false articles in newspapers and writing baseless letters of complaint to the authorities. Such attempts contradict the principles of fair and standard business practices and aim to affect HSR’s normal coal procurement to obtain improper economic benefits,” said the Company’s representative in his letter to Chairman NEPRA.
HSR is of the view that this situation as unacceptable and has requested NEPRA to identify this situation and clarify the facts to the public to prevent abuse of the regulatory process.
Furthermore, the Chinese power company has requested NEPRA and the relevant authorities to critically evaluate the validity of such complaints and cross-examine the complainants before granting them any consideration.
” Procurement-related matters must be assessed objectively based on facts, regulatory compliance, and prevailing market conditions rather than unsubstantiated accusations driven by misinformation or vested business interests,” HRS said adding that it has always prioritized cost-effective and transparent procurement practices, ensuring the selection of the most competitive offers. Additionally, all procurement decisions at HSR undergo approval through Fuel Cost Components (FCCs), ensuring complete regulatory compliance.
The Company has reaffirmed that it will remain fully committed to upholding the integrity of the procurement process and will continue to cooperate with regulatory bodies to maintain the highest standards of fairness, efficiency, and transparency in the energy sector.
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