The Khyber Pakhtunkhwa (KP) government has scrapped the tender for its first flagship free solarization project, worth Rs33 billion, due to reported irregularities in the bidding process and a significant spike in project costs. According to the KP Energy Department, a new PC-1 will now be prepared for the project.

Officials stated that the cancellation was prompted by irregularities in the bidding process and an abnormal increase in the estimated per-unit cost.

It was revealed that illegal changes had been made to the project's technical specifications. Consequently, all pre-qualified bidders have been directed to withdraw their bid securities or bank guarantees.

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The department had initially estimated the per-unit cost at Rs204,000, but experts contend that the revised technical details should have brought the cost down to approximately Rs140,000 per unit.

Energy Secretary Zubair Khan said a fresh PC-1 will be developed, taking into account all objections and ensuring adherence to technical standards and regulatory compliance.

The project was announced in August 2024 by Chief Minister Ali Amin Gandapur during a ceremony in Peshawar. Under the plan, 65,000 households were to receive free solar units, while another 65,000 were to be provided units at subsidized rates with easy installment plans.

The scheme had also earmarked allocations for widows, the transgender community, and residents of the merged tribal districts. Implementation was scheduled in two phases, with 65,000 households covered in each phase.

Over 2.5 million citizens had applied online for the scheme, and the balloting process had already been completed. However, with the cancellation of the tender, the distribution of solar systems has now been indefinitely delayed, raising fears of further postponement.

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