The Government is committed to bring 8,000 CNG buses on intra-city routes in the major cities of the country. Out of these, about 4,000 buses are planned to be introduced in Karachi. A few of the CNG buses are already on-road on various routes in the city. In order to cater to the CNG refueling requirements of these buses, the Federal Government is funding to establish the first large capacity CNG station by HDIP. The project has been approved by CDWP subject to its feasibility. The selected consultant/firm will be required to carry out a feasibility study to ascertain the viability or otherwise of establishment of the Mega CNG Station at the specified location.

 

a)                  Location of the Mega CNG Station

 

The Mega CNG Station will be established at 2-acres of land at ex-KTC/SRTC Depot, Korangi likely to be provided by the Government of Sindh for this specific purpose. The land will be considered as equity of Sindh Government in the project and its value will be determined by valuators appointed jointly by HDIP and Government of Sindh. Confirmation regarding location and determined value of land will be made before the award of study.

 

b)                 Design/Specifications

 

The proposed configuration of HDIP’s Mega CNG Station for providing CNG to 200-250 buses daily will be as follows:

 

-   Compression Capacity        :     4,000 to 4,500 cubic meters /hour

-   Dispensing Units                :     6 Dual-hose fast filling equipped with digital mass flow system.

-   CNG Storage Capacity       :     16,000 WLC

-   Auxiliary Equipment          :     Priority fill panel, high pressure piping and fittings, blow down vessel, surge tanks, connectors, valves, etc.

-   Electric Power Generator   :     635 KVA

 

c)                   Budget Estimate:

 

Rs 150 million plus land provided by Government of Sindh as equity.

           

The selected consultant/firm will carry out the feasibility study of the project covering various essential parts as are required for such studies and considering all factors affecting the viability of the project including, but not limited to, the following:

 

i)                    Determination of capital cost of the project including CNG equipment and civil works. A layout plan of the civil works will be provided along with detailed specifications of equipment and their price estimates.

ii)                  Determination of the cost of gas purchased from gas utility company and determination of sale price of CNG to consumers.

iii)                Determination of the operating cost of the project keeping in view the costs of equipment, natural gas, electricity, utilities, manpower, etc.

iv)                Market demand analysis particularly the availability of dedicated CNG buses and light vehicles at the specific site.

v)                  Market growth analysis and forecasting.

vi)                Natural gas supply analysis and availability forecasting.

vii)              Identification of present and future routes with number of CNG buses on each route and the probability of growth in future.

viii)            Determination of key financial parameters like IRR, FIRR, payback period, etc.

ix)                Development of profitability, cash flow and balance sheet projections.

x)                  Regulatory requirements at the time of initiation and completion of the project.

xi)                Determination of break even point based on as sold and no. of vehicles.

xii)              Complete picture of federal and provincial taxes, levies applicable on CNG refueling stations in the vicinity area of the project.

xiii)            Any other point to be brought out at the time of briefing and award of work.

 

The final Feasibility Study Report will be a comprehensive and conclusive report which should meet the requirements of the Planning Commission and should clearly mention financial and economic viability or otherwise of the project.

 

 

The Feasibility Study Report will be submitted to HDIP within 6 weeks after award of work. As per following schedule:

 

 

-           First draft report to be submitted for consideration to HDIP by 04 weeks

-           HDIP will review and communicate its comments, to the consultant/ firm within one week of receipt of the report.

-           The consultant will submit the final report to HDIP after incorporating the comments of HDIP within 01 week.

-           In case of any delay due to unavoidable circumstances, HDIP and consultant/ firm will rework the above time schedule to ensure the quality of the report.

 

6.      Payment

 

The payment of the Feasibility Study Report will be made on its satisfactory acceptance by HDIP. The payment against this task shall be made by HDIP through Bank draft/ Pay order, in the name of consultant/ firm as per the following schedule:-

 

            -           10% at the time of placement of task order.

            -           40% on submission of the draft feasibility report.

            -           50% on approval of the final feasibility report of the project.

 

 

 

The bids/proposals (including detailed profiles of the applicant companies and their previous experience of preparing feasibility studies) should be submitted to General Manager (CNG Operations), Hydrocarbon Development Institute of Pakistan, Plot #18, Street 6, H-9/1, Islamabad on or before 7^th May 2010.

 

The bids shall comprise a single envelope containing two envelopes, each of which shall contain the financial and technical proposals separately.

 

 

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