Pakistan’s power regulator to devise mechanism for purchase of Afghan coal

Pakistan’s electric power regulator will meet Monday to discuss a mechanism for the purchase of coal from Afghanistan for longer periods, possibly three to six months, opposed to the current monthly procurement process.

The National Electric Power Regulatory Authority (NEPRA) will hold a public hearing and have said procurement of coal from Afghanistan needs to be conducted fairly and transparently and that the process should be efficient and economical.

Guidelines put forward already by NEPRA include an estimate of the amount of coal that will be needed over the next six months, purchasers need to ensure that the final price negotiated is competitive, market reflective and comparable with that of other suppliers and that the currency for importing and trading the Afghan coal must be in Pakistani Rupees, the Nation reported.

In addition, the delivered cost of Afghan coal should remain lower than imported coal from any other origin.

NEPRA stated however that the process should have provision to accommodate additional supply at lower than awarded rates from new suppliers during the course of existing contracts if the price of the commodity falls due to reduction in demand or any other event, the Tribune reported.