New consultant, bid papers to avoid Sasan-like dispute

NEW DELHI: Power Finance Corporation (PFC), the nodal agency for the ultra mega power projects, has decided to take steps to avoid a repeat of the controversies that came to light after the award of the Sasan ultra mega power project. PFC has now made changes in the bid documents. It has also decided to make a fresh appointment for a consultant to assist in the evaluation of bids.

Ernst & Young is consultant to PFC for the ultra mega power projects. The new appointment could be to strengthen the evaluation process that has come under criticism following the alleged misrepresentation made by Globeleq-Lanco. It’s not clear if the proposed new consultant will replace Ernst & Young or work along with it.

The proposed new consultant will assist in the evaluation of bids, assist in finalising documents such as requests for qualification (RFQ), deal with clarifications on queries received from bidders, requests for proposals (RFP) and draft power purchase agreements (PPA).

The consultant would also be required to assist in the finalisation of contract documents with the developers. It would seem PFC is looking at ensuring that no lapses occur during the bid process.

In another move, the bid document has been amended to ensure that potential bidders give a more accurate picture of their technical capabilities. The amended Annexure 8 will require the bidder to state clearly the percentage of equity it held in a project at the time of its completion.

The auditors for the bidders will also have to attest that the summary provided in the document has been prepared based on information and documentary evidence provided by the management of the bidding company. This would help pinpoint responsibility.