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Contract awarded for supply of 10m energy savers

The ministry of water and power has signed a contract with a Hong Kong-based firm to supply 10 million energy savers lamps under the government’s initiative to provide 30 million lamps to general consumers, sources said on Wednesday.

Under the 2nd phase of free distribution of 10 million energy savers or compact fluorescent lamps (CFLs) a contract has been signed between the ministry of water and power and M/s Beauty Shadow of Hong Kong in Lahore, sources added.

The first contract was awarded to M/s Philips Electrical Industries of Pakistan for supply of 20 million energy savers.

It is expected that supply of energy savers would start by 15th September, 2012 and its distribution would also commence by second or third week of September, sources said, adding the project is already delayed by at least two years due to several reasons.

A recent tender for the supply of energy savers was opened in the first November 2011 and notification of award was issued in February 2012. After receiving acceptance of the award in March 2012 from successful bidders, authorities did nothing for several months, sources said.

As per the rules, after notification of the award the purchaser must sign a contract agreement with the successful bidder within four weeks.

But now after much delay both the contracts have been formally awarded.

The CFL distribution project has earlier seen several ups and down in the last couple of years and initial bidding process had to be abandoned twice due to multiple factors, sources said.

As part of demand side management (DSM), the project will help in reducing peak demand of over 1000MW and a saving of about 2000 million units of energy equivalent to Rs17.5 billion.

The project envisages purchase of 30 million CFLs funded by the ADB & AFD of France with respective financing of $40m and $25m each. The loan is being extended to the government, which will bear the cost of CFLs. CFLs are being purchased in bulk, in two rounds of 20 million and 10 million and will be distributed to domestic consumers through all the DISCOs and the Karachi Electric Supply Company (KESC) free of cost in exchange for 40-100W incandescent bulbs. The distribution cost will be borne by the DISCOs and KESC using their own resources. The ministry of water and power will carryout overall project management and DISCOs and KESC act as executers.

The PC-I for the National CFLs project was considered by the CDWP in its meeting held on 19th November 2009 and was recommended for approval by the ECNEC.

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