ISLAMABAD : The Public Procurement Regulatory Authority (PPRA) has refused to grant exemptions from PPRA rules regarding procurement of various procurements to maintain Rousch Power Plant Complex, directing Power Division to approach Cabinet for it.
Sharing the details sources told Newzshewz, on April 11, 2025, MD (PPRA) apprised the PPRA Board that Power Division in its letter of March 28,2025 forwarded the request of National Power Parks Management Company (Private) Limited (NPPMCL) of March 27, 2025 for grant of onetime exemption to NPPMCL from the applicability and operations of Public Procurement Rules, 2004 for various procurements. The Ministry of Energy, Power Division in its letter of January 30, 2025 provided a copy of draft summary for the Cabinet on the subject matter and requested PPRA to provide comments in accordance with Rule 18 (iv) of the Rules of Business 1973. In of summary for the Cabinet, the Power Division sought approval for exemption from applicability of Public Procurement Rules, 2004 for procurement of various services required by NPPMCL for taking over Rousch Power Plant (complex and site) from Rousch Pakistan Power Limited (RPPL).
In order to consider the case for recommendation of exemption, PPRA on March 25, 2025 requested the Power Division to provide details of proposed procurements, justification for exemption along with reasons recorded in writing, duly endorsed by the Secretary/PAO of concerned ministry for onward consideration of the PPRA Board.
Power Division in its letter forwarded NPPMCL’s letter of March 27, 2025 containing justifications for grant of exemption from the applicability of Public Procurement Rules, 2004. The Ministry stated that the Task Force, constituted by the Prime Minister on implementing structural reforms in power sector, in its presentation to the Prime Minister on September 02,2024 and subsequent briefing to the Cabinet on September 04, 2024, made its submission to terminate five IPPs including Rousch Pakistan Power Limited (RPPL) in order to reduce capacity payments and consumer tariff. As Rousch Power Plant was built under “Build Operate, Own & Transfer” (BOOT) basis, it was agreed that complex and site of RPPL shall be transferred to the Federal Government or its “designated entity” at the consideration of 1(one only) United States Dollar.
The Ministry further informed that the Cabinet in its decision of October 10, 2024 nominated NPPMCL as its “Designated Entity” to take over the complex and site from RPPL. The NPPMCL was required to maintain the Complex of RPPL in dry preservation mode for a period of six months after taking over the Plant by December 31, 2024 and submit the rationalized cost thereof for scrutiny / examination by the Power Division. Moreover, the Ministry observed that in order to keep the Complex in dry-preservation mode and to maintain the same effective from January 01,2025 requires workforce / staff is requested, which NPPIMCL lacks being a management company. Therefore, third-party contractors were required to be placed by December 31,2024 for following services; (i) O&M Services for maintaining the Power Plant in dry preservation mode; (ii) long-term maintenance services agreement (LTMSA) Services for maintenance of two Gas Turbines and one Steam Turbine;(iii) Security Services for security of the Complex including housing facility; (iv) Third-party HR Services for temporary provision of twelve personnel to the sponsor (NPPMCL/GOP) to oversee the O&M Services;(v) Legal Services for transfer of title of land and other ancillary service(s) pertaining to transfer of assets/complex or other agreements etc. on need basis; (vi) Audit Services to audit/ verify the expenditure of the grant provided by GoP;(vii) Horticulture Services for maintaining the fruit orchards, trees and lawns of the Complex and housing facility; and (viii) insurance services.
It was further apprised to the Board that the fair market value of the assets (complex and Site of Rousch Power Plant) surrendered by RPPL in favour of the Government of Pakistan is approximately Rs. 35.6 billion, therefore, the same has become a national asset after taking over by NPPMCL on the direction of the Federal Government. Moreover, NPPMCL being a Public Sector entity is obligated to follow the procedure prescribed in Public Procurement Rules, 2004 for procurement of above services. The NPPMCL is of the view that o period of four months is usually required for procurement under Public Procurement Rules, 2004.The Ministry emphasized that preservation and safeguarding of a national asset valued more than Rs. 35.5 billion is in the national interest. Therefore, the Ministry requested a one-time exemption for NPPMCL from the applicability of Public Procurement Rules, 2004 for the procurements.
The Finance Secretary / Chairman PPRA Board invited the management of NPPMCL to explain as to why exemption for all eight items is required as indicated in the summary .Secretary (Power Division) opined that the exemption may be granted to NPPMCL being the most essential services required on emergent basis.
After detailed deliberations, PPRA Board recommended the case to the Federal Government for grant of exemption from applicability of Rule 12 & 20 of PP Rules,2004 under Section 21 of PPRA Ordinance, 2002 to National Power Parks Management Company (Private) Limited (NPPMCL), Ministry of Energy (Power Division) for hiring of following services for taking over Rousch Power Plant in the national interest for such time as these services can be obtained on a competitive basis; (i) O&M Services for maintaining the Power Plant in dry preservation mode; and (ii) Third-party HR Services for temporary provision of twelve personnel to the sponsor (NPPMCL/GoP)to oversee the O&M services;
Ends
