Transparency International Asks CM Punjab to Review EOI for Waste to Energy Project in Lahore
Transparency International Pakistan has asked Chief Minister Punjab to review the Expression of Interest (EOI) for the Waste to Energy Project in Lahore.
Transparency International Pakistan has asked Chief Minister Punjab to review the Expression of Interest (EOI) for the Waste to Energy Project in Lahore.
TIP has written a letter to CM Punjab with regard to receiving a complaint against the allegation of the violation of the Punjab Public Private Partnership Act 2019 in the Expression of Interest (EOI) for the Waste to Energy Project in Lahore.
As per the details, the Energy Department, Government of Punjab has invited EOI for the development of an approximately 50MW Waste to Energy project at Lahore for the dedicated sale of electricity to public bulk consumers in Punjab.
The invitation is open to all local and foreign companies/JVs with experience in the relevant field to submit a Statement of Qualification by 15th February 2023. As per the EOI, Lahore Waste Management Company (LWMC) commits to supply a variable quantity between 2000 to 3000 of Municipal Solid Waste/per day for the development of the Lahore Waste to Energy project.
As opposed to a commitment to supply variable quantities of waste by LWMC, the lenders will ask for a guarantee of a minimum quantity of waste assured by LWMC in the contract agreement. The establishment of a 50MW project must have a fixed defined quantity of municipal solid waste required for generating 50MW electricity. TIP claims that it reviewed the allegations of the complaint and prima facie the allegations seem to be correct.
The commitment by LWMC to supply a variable quantity between 2,000 to 3,000 tons of municipal solid waste/day means that the generation cost for the company awarded the contract could also substantially reduce depending on the supply of municipal waste
The establishment of an approximately 50MW WtE project requires a fixed amount of solid waste which will be needed to be provided by the LWMC, as required under Section 25 and Sections 28(L) of the Punjab Public Private Partnership Act 2019 as the Authority shall indicate the Government support. if any. approved by the Board for this project besides the draft PPP agreement which forms part of the hid documents shall clearly define the legal relationship between the Authority and the selected private party, their rights and responsibilities including the specific Government support for the project. If the rights and obligations of the parties include risk sharing.
The cost of power plants established for 2,000 tons of waste and for 3,000 tons of waste may have a direct effect on the energy generation under the project as the difference between the committed quantity is approximately 50 percent as the production of 3,000 tons of solid municipal waste may be cheaper than the production of 2,000 tons of solid municipal waste.
This difference in the cost may cause a huge loss to the provincial exchequer and is in violation of the Punjab Public private Act.
TIP has requested CM Punjab to review the complaint in light of the Punjab Public Private Partnership Act 2019 and if found correct, may re-issue EOI with a fixed quantity of solid waste to be supplied by LWMC in compliance with the Act.
