PSO-APL JV wins bid for fuel farm

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KARACHI: The joint venture of Pakistan State Oil (PSO) and Attock Petroleum Limited (APL) has won the bid for establishing a fuel farm and operation and maintenance of hydrant refueling system at the new Benazir Bhutto International Airport, Islamabad, stated a notice sent to the Karachi Stock Exchange (KSE).


PSO in collaboration with APL participated in the bidding and has been declared successful by the Civil Aviation Authority (CAA), it added.


It may be mentioned that the CAA had cancelled the 2012 bidding process and decided to invite fresh bids for the storage facility.


The authority is struggling for construction of state of the art new airport at Islamabad. New airport will emerge as the hub of aviation as well as commercial activities in the region, said sources.


Amongst various other facilities, CAA has almost completed installation of hydrant refueling system (HRS). The HRS will be connected to the fuel storage farm for which CAA invited tenders.


Sources revealed that the CAA had cancelled the entire 2012 bidding process for supplying jet fuel to planes at the under-construction airport.


The leading oil marketing companies (OMCs), including PSO and APL were making all possible efforts to get the contract. Both the companies claimed that they were successful bidders for setting up fuel farm as well as operation and maintenance of hydrant re-fuelling system at the airport.


APL submitted a bid of 40 paisas per litre as well as a share in profit margin of hydrant access charge while PSO offered a bid of 1.01 paisa per litre.


A CAA official said the new airport’s fuel farm storage capacity will initially be around 10,000 tons with the possibility of expansion up to 21,000 tons and the total cost of the farm is estimated at Rs1.5 billion.


The project is being developed on public-private partnership where CAA is laying hydrant re-fuelling system and the fuel farm will be set up by a private party. The project will operate on open access model where any OMC can supply fuel to airlines against a throughput charge to the fuel farm operator.


CAA is establishing the new Benazir Bhutto airport near Fateh Jang, district Attock – some 30 kilometers away from present airport in Islamabad.


Upon completion, the airport will be the biggest airport in Pakistan both in terms of passengers and cargo handling annually.


The construction of passenger’s terminal building is under way and the government is hopeful of making this airport operational by 2014.

Courtesy:  The News

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