20 October 2011

Ref: R&D/AS-005/10/2011
Note to Dy. Managing Director (Ops)
Thru: SGM (D-South)
APPOINTMENT OF CONSULTANT FOR PAKISTAN GAS APPLIANCE EFFICIENCY
ENHANCEMENT PROJECT (PGAEEP) COMPONENT OF NATURAL GAS
EFFICIENCY PROJECT (NGEP)
The Company has embarked on a five-year USD 272 million programme called NGEP for
improving efficiency of gas distribution and end-use of natural gas in house-holds. The project
involved USD 200 million financing component from the World Bank, which had provided
guidelines for development of the proposal. Hence, a component called PGAEEP was also conceived
alongwith NGEP by the project developers, i.e. R&D and Distribution South. An amount of USD 5
million was earmarked for this component, which also qualified for Global Environment Facility
(GEF) grant for USD 1.5 million, through Ministry of Environment, as it contributed to the
UNFCCC goals of arresting GHG (greenhouse gases) emissions.
The purpose of PGAEEP is to develop standards, labeling and testing regime for the local gas
appliance industry vis--vis: energy efficiency, quality, reliability and safety (for further details refer
to annexure A Proposal for PGAEEP). The program will target the areas for improvement in
Pakistan Standards/testing requirements laid down therein and would suggest improvement in
standards/testing after comparing these with relevant International Standards. Accordingly, an energy
labeling scheme will be developed/implemented with the collaboration of industry, implementing
agency (SSGC) and partners (ENERCON, PSQCA and SMEDA). Besides, it will also develop
appliance testing laboratory and other infrastructure necessary for accreditation and certification of
appliance testing in the country.
The successful implementation of this project can yield numerous gas savings via reduction in gas
usage in domestic sector. The potential gas savings have been projected at 13.5 BCF/annum (Gas
Savings potential annexure C). In addition to that the project will contribute to the development
of the local industry and consumer awareness causing a positive impact on the Country for times to
come.
A total budget provision for Rs. 460 million spread up over the period FY 2011-12 till FY 2014-15
has been made for this component. In order to initiate the project, SSGC needs to appoint a globally
acclaimed consulting firm, well-versed in the field of gas appliance standardization initiatives to
develop a project implementation plan. The terms of reference (TOR) for the same have been
developed (attached as annexure B) to facilitate bidding process.
It is, therefore, suggested that the attached document may be reviewed and the process for
appointment of consultant/consulting firm may be initiated as per the World Bank guidelines.
Kindly accord your approval for initiating this project and the process of appointment of
consultant/consulting firm through procurement of services by the M&IM department.
___________
Aatir Salman
Actg. Chief Engineer (R&D)