Pakistan currently is facing severe gas and power shortage, while the government is managing the crises through gas and power load management plans as well as increasing the prices of utilities. Currently government has declared two and half days per week suspension in supply of Compressed Natural Gas (CNG) in Punjab and two days in Sindh.
The Minister of Petroleum on May 28 had given a green signal to NESPAK to initiate work on the feasibility study of Pakistan's section of the pipeline from the Iranian border to district Nawabshah, Sindh. NESPAK currently has mobilised experts to undertake a reconnaissance mission preparatory to laying the Iran Pakistan (IP) gas pipeline on our side of the border. Sources said that two to three Chinese leading firms are also interested in the project.
According to EoI "Inter State Gas Systems (Pvt.) Limited (ISGS) is a company set up by the Government of Pakistan ('GoP") to develop, own and operate project for the import of natural gas through pipeline in Pakistan and is responsible for and shall act as the project manager for the pipeline, which is estimated to cost US $1.2 billion based on the recent provisional cost estimates".
"ISGS is inviting Expressions of Interest (EoIs) from reputable national/ international banks having strong investment banking credentials, or consortia of banks/financial institutions/firms led by banking companies, with requisite qualifications and demonstrable experience in the structuring and financing of infrastructure development projects in energy sector in general, and oil & gas pipeline sector in particular, to act as Financial Advisor (FA) to assist ISGS in arranging capital (debt and equity) for the project. The prospective consortia, if any, may include multiple banks along with other non-banking enterprises, but each consortium shall identify one bank as the Lead Advisor", the EoI added. The FA shall be responsible for managing the entire transaction up to the financial close. The EoIs shall be evaluated against the following criteria:
National/International Financial Institutions with strong investment banking credentials would be considered eligible for the transaction. In case of a consortium, the lead advisor will have to be a bank with strong investment banking credentials.
Government-owned enterprises may participate only if they can establish that they: (a) are legally and financially autonomous; and (b) operate under commercial law.
The prospective applicant will need to have a minimum asset base of US $10 billion. The requisite document to this effect will have to be submitted. The lead advisor has managed a minimum of US $2billion worth of transactions in last 36 months. The lead advisor will have to accompany the EoI with a non-refundable processing fee of US $7,000 in the shape of a demand draft payable to 'Inter State Gas Systems (Pvt.) Limited".
The pre-qualified parties shall be sent request for proposals (RFP) for submission of detailed technical and financial proposals. Interested parties or their local agents can obtain the detailed EoI document from ISGS's website (www.isgs.pk). Eols received at given address on or before 20th August 2011 along with a deposit of US $7,000 as non-refundable processing fee shall only be entertained by the company.