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New power projects.

New Power Projects

Negotiations are in progress on power tariff at which the Hub Power Project will supply power to WAPDA. The tariff, which is still a secret, was key to further progress on the Rs. 29 billion project. It was a moot issue at protracted negotiations recently between the sponsors and the government in Islamabad following which the sponsors had given their final proposal. A power tariff agreement in December 1989 had proposed the power supply at the rate of 103.6 paisa per unit at 60 per cent plant factor and paisa 97.6 per cent at 70 per cent plant factor. The discussions were not conlcusive as a number of agreements were to be negotiated.

In the meantime, some partners of the company backed out and replacements were sought by the company. Also the price hike called for reopening of negotiations on some draft agreements. The negotiations were of extremely delicate nature which would have cancelled the project. The agreement on tariff would pave the way for early conclusion of the other agreements. In 1986 when the project was first mooted it was to be commissioned in 1992. Then it is to be completed in 1993. At present it looks the project may be completed in 1994.

The thermal power plant has been sponsored by a Hawker Siddeley Power Engineering and Xenel Industries Limited of Saudi Arabia. Originally it involved a consortium composed of Mitsui, IHI, Toshiba, HSPE and Kumagai for construction and supply of equipment. A separate consortium was set up of British Electricity Industries and Canadian Utilities for its operations.

Two Japanese suppliers of turbines and construction contractors withdrew due to some snags. Now Messrs Alsaldo of Italy and a French company has replaced them. At that time the cost was Rs. 22.7 billion but now it is expected to be around Rs. 29 billion due to depreciation of the Pakistani rupee and rise in inflation. It is learnt that the drafts of agreements like implementation agreement fuel supply agreement, are being examined by foreign experts commissioned by the Government of Pakistan.

Coal-Fired Floating

Power Project

German investors signed an agreement with Pakistan's private sector investors for establishing a 24 MW coal-fired floating power generating project in Balochistan. The agreement was signed by Dr. Wolfgan Bengel and Karl Bay for Germany MB Bagsi, M.D. Lieda for Lasbela Industrial Estate and Farooq Siddiqui for Pakistani private sector. Plant and machinery will be supplied by Germany's M. Karal by Gmbh KG Company, who have supplied similar plants to China and some other countries. The power-generation plant will be based on low grade local coal, which will be used as its fuel. The Government of Balochistan has not only approved the project but issued the No Objection Certificate (NOC) in February, 1991. Replying to a question, the German investors Dr. Wolfgang Bengel, said this project will be a pollution-free as the technology utilised in this project is pollution-free technology. He said there had been a lot of hue and cry about pollution and therefore, the Germans have developed such a technology which was free from pollution. The German investors for about 10 years will run the project through their expertise and will later hand over it to Pakistanis. Part of the funds will find its way through the World Bank as they have already pledged.

This will be a purely industrial project and will be the |transfer of technology' in real sense, which was much needed in Pakistan. Project will generate employment initially to 60 people but later with the establishment of industries in Winder Industrial Estate it will provide jobs to about 5,000 people. The present electricity requirement of the Winder Industrial Estate is 32 MW and the KESC is supplying 16 MW. The German investors will run the power plant for 10 years training the local cadre for shouldering the future responsibilities. The power plant to be based on low grade coal will not cause any pollution in the air or in the sea because a special technique will be used to desulphurise the sulphur.

Pasni Power Plant

Eighty per cent work on 45 megawatt power plant at Pasni has been completed while remaining is nearing completion to provide power to the interior and coastal areas of Mekran division. The Pasni power plant under installation with assistance of British Overseas Overseas Development Agency would cost Rs. 760 million. A 132 kv transmission line from Pasni to Turbat has been strung by the WAPDA engineers in a short span of less than one year. It has cost Rs. 330 million. Besides availability of energy for Pasni and Turbat, this transmission line is also a source of electricity for all the areas within a radius of 25 kilometers of the transmission line. A WAPDA spokesman said the 45 megawatt diesel generating power plant at Pasni is all the more essential for the interior and coastal areas of Mekran division which cannot be connected with the national grid because of its remote location about 450 kilometres away from national grid network.

Transmission Power Project

WAPDA has undertaken the construction of a new 500 kv transmission line between Tarbela and Peshawar for transmitting cheaper hydel power from Tarbela to load centres of NWFP and to cope with the mounting demand for electricity. According to a WAPDA press release the 500 kv transmission line will be the second extra high voltage transmission line between Tarbela and Peshawar. A 220 kv Tarbela, Mardan transmission line in already in operation. This first ever vital 500 kv transmission project on the route envisages the construction of 120 km long, 500 kv single circuit transmission line along with the necessary 6500/220/132 kv grid stations at Peshawar. A salient feature on the project is that the planning and designing of the entire transmission line and grid stations has been done by WAPDA's own engineers.

Hydro-Electric Plant

There is proposal under the consideration of Government to install a hydro electric plant at Chashma Hydro Power Project. In a written answer, the National Assembly was informed in response to a question by Fazal Karim Kundi that the proposed project would initially have a total installed capacity of 135,000 kw which would be implemented in a period of 51 months after the award of contract, which is expected during financial year 1991-92.

The Assembly was further informed that subject to results of hydrological studies and tests, further additions to project may be undertaken in unit sizes of 22,500 kw each, subject to maximum project size of 270,000 kw i.e. 12 units of 22,500 kw each.

Finnish Loan

Finland has granted concessional credit of 12 million dollars for the first time, to the private sector. The credit is for a diesel power station to be set up by a group of private companies near Lahore. The generator is supplied by Wartsila Diesel Ltd. of Finland. The value of the deal is about 12 million dollars, of which 85 per cent is financed on normal terms by the Finnish Export Credit Ltd. The concessional component comes from the interest subsidy granted by the Government of Finland through the Finnish International Development Agency. The value of the interest subsidy is about six million dollars during 10 years. The credit is thus virtually interest-free. The Finance Ministry has issued NOC for the financing arrangement.

Power Plant on

Pay-in-Kind Basis

Private textile entrepreneurs propose to establish a power plant at Jamshoro with four units of 210 megawatt each. The plant has been issued letter of support by the government recently. The plant will be set up with Soviet machinery and expertise to be paid back through supply of textile goods produced by the sponsor in their own textile mills. The sponsors belong the ABS group of textile mill owners. Considered to be a major power plant in the private sector in view of its capacity of a total of 840 megawatts to be produced in four units together, it will be oil-fired.

The power produced by it would be purchased by WAPDA for putting it into the national grid. Because of the direct Soviet assistance, the plant will have no financing problem which is generally being faced by other private sector power projects now in different stages of processing. In view of this fact and also of the sponsor's resources to pay back in kind, it is considered to be one of the fast-tract private power projects to be commissioned sooner than other old projects.

Coal Fired

Thermal Complex

The work on installing 3x50 MW units 1-3 at Lakhra has been started and is scheduled to be completed by May 1993. Under Phase-II of Lakhra coal development project, three more units (4 to 6) of the same capacity will also be installed. Further extensions of bigger size units have also been planned. The coal reserves in Sonda-Thatta areas will also be used for power generation. The scarce indigenous energy resources alone cannot meet the power requirements in the future years which have to be supplemented by establishing thermal plants on imported coal for which a feasibility study has been submitted by Shawinigan Integ of Canada in association with EBASCO Overseas Services incorporated of USA.

The proposed capacity of this imported coal fired thermal complex will be 3,600 MW and is proposed to be constructed in 3 phases, each comprising of 2x600 MW units. The work on the first 600 MW is envisaged to be started during the current Plan period. The power complex is planned to be sited at Khalifa Point, located in coastal area of Balochistan, some 30 KM North West of Karachi.
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Title Annotation:new power plants in Pakistan; Power Generation and Transmission
Publication:Economic Review
Date:Jun 1, 1991
Previous Article:Power generation.
Next Article:Buoyant nitrogen situation in Pakistan.

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