Islamabad, Feb 11: The National Electric Power Regulatory Authority (NEPRA) has uncovered significant irregularities in the coal procurement process of the Sahiwal Coal Power Plant. A special investigative committee conducted a thorough review, revealing concerns related to competition, pricing strategies, and procedural transparency.
The inquiry, launched last year, stemmed from complaints by bidders regarding suspected collusion, inflated prices, and restrictive bidding practices. Despite these concerns, the investigation did not hold any party responsible for procurement decisions, nor did it accuse the plant’s administration of misconduct.
According to the committee’s findings, the procurement process lacked sufficient competition, as only a single qualified bidder was able to participate. This limitation raised concerns about the fairness and transparency of the process.
The committee noted that despite multiple requests, bidders failed to present substantial evidence to support their claims. Furthermore, the report highlighted the absence of comprehensive NEPRA guidelines for long-term coal procurement, recommending that the regulatory body address this gap to prevent future issues.
Read More:
Symmetry Group Eyes IPO & VC Funding to Expand Tech Ventures
One of the major concerns raised by bidders was that a specific supplier allegedly had prior knowledge of the winning bid, enabling the company to deliver coal immediately after securing the contract.
Additionally, discrepancies in pricing were reported, with coal being supplied at Rs. 75,000 per ton despite market rates being significantly lower at Rs. 40,000 per ton. However, the committee found insufficient data to verify these allegations conclusively.
To ensure transparency and prevent similar concerns in the future, the committee proposed several recommendations. These include establishing an independent regulatory body to oversee coal pricing and procurement, enforcing stricter guidelines for long-term coal supply contracts, and implementing enhanced measures for procurement transparency. By adopting these recommendations, NEPRA aims to strengthen regulatory oversight and promote fair competition within the energy sector.
These findings underscore the importance of a transparent and competitive procurement system. Addressing the identified issues through improved regulations and independent oversight will help build trust and efficiency in the coal supply process, ensuring better outcomes for both industry stakeholders and consumers.
