Govt Orders Modification of Tender Documents For ISTS Projects

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The Ministry of Power, in its latest notice, ordered a revision of the Standard Bidding Documents for procurement of power under the Inter-State Transmission Services (ISTS), done through tariff-based competitive bidding (TBCB). These documents often comprise the Request for Proposal (RfP) and the Transmission Services Agreement (TSA).

Ministry of Power issued a new order seeking more details from bidders. Photo by-brgfx/Freepik

The ministry justified the new amendment by citing a dearth of information, such bids relating to the aggregate capital cost of the projects and the aggregate payment received (CAPEX). “…it has come to the notice of this ministry that the provisions to derive the Technical Requirement w.r.t. HVDC Systems (i.e. aggregate capital cost of projects/ aggregate payments received (CAPEX) to be met by the bidding company or Lead member of the Bidding Consortium) are not present in the Standard Rfp,” the order said.

The order said the revision order was issued after the ministry consulted with the Central Electricity Authority (CEA) on the matter. The new proposal proposes amending para 2.1.2 of the standard RfP documents to include the provisions of aggregate capital cost with respect to the HVDC systems. The new provisions talk about the additional technical requirements to be met by the bidding firm or lead member of the bidding consortium.

The new provisions ask the bidders to specify their experience of developing projects in the infrastructure sector in the last five years with their aggregate capital expenditure and the capital expenditure of each project. 

“For this purpose, capital expenditure incurred on projects that have been commissioned/ completed at least seven (7) days prior to Bid Deadline shall be considered. The capital expenditure discussed above shall be as capitalized and reflected in the audited books of accounts of the Technically Evaluated Entity,” the order said.

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The provision said the bidders have to submit the details of receipt of aggregate payments of their technically evaluated entity from its clients for construction works fully completed during the last five years.

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The ministry, meanwhile, has also specified the aggregate capital cost of projects and the aggregate payments received for projects based on their voltage levels for a uniform calculation. 

It has specified costs for HVAC systems below 220kV, 220KV, 400KV, and 765 KW and above based on per kilometer. It also said that the bidders must furnish documentary evidence duly certified by the authorized signatory of the bidder who was issued power of attorney in support of their technical capability of the RfP.