Coal news and updates

Pakistan Govt advancing on coal power projects to ensure reduction in fuel bill

Ministry of Water and Power has initiated preliminary documentation on two coal projects of 660 MW each, under Gadani Power Project to meet future power needs and ensure significant reduction in fuel bill.

After coming to power, the present government, as part of its efforts to generate low-cost electricity planned to construct Power Park at Gadani Balochistan with ten projects of 660 MW each (6600 MW). The Ministry sources on Sunday said two 660 MW each Coal Fired Power Project would be installed by public sector as preliminary documentation on two 660 MW each Gadani Power Project has been initiated. The sources said in this respect, Pakistan Power Park Management Company Limited (PPMCL) as Special Purpose Vehicle (SPV) has been registered by Ministry of Water and Power. The Gadani Power Park feasibility is being powered by PPMCL and the fund requirement for GENCOs two 660 MW each project is about US$ 2 billion.

They said all common facilities including Jetty for import of coal, switchyard, ash disposal, cooling water, transmission infrastructure and residential facilities would be completed by government controlled Special Purpose Vehicle (SPV).

Gadani Power Project is expected to be completed by the end of 2018. They said use of coal as fuel will result in significant reduction in fuel price and ultimately lessen burden on import and foreign exchange reserve. The other coal fired 660 MW each power projects are of Asian Development Bank (ADB) and being installed at TPS Jamshoro.  Super critical coal fired boiler technology is first time being introduced in Pakistan and Asian Development Bank is funding this project (80PC ADB, 20PC Government). The sources said PC-I has been approved by ECNEC and completion date of this project is by mid of 2018. The other project is Nandipur Power Project 425MW, the sources said and added by the commitment of present government, the contract agreement was signed with Chinese Company and as a result of this amendment, the Chinese have re-mobilized at Nandipur site to resume project work. They said all the requisite financing have been arranged from syndicate of local banks and for disbursement of the same, letters of credit have also been established in favour of relevant parties. An amount of Rs 1,002 Million deposited on July 16, 2013 for making payments against demurrage and detention charges. The long detained project material lying at different ports of Karachi had been transported to Nandipur site by the contractor.  At present, the sources said work is being carried out on war-footing basis. The accelerated project completion schedule has been revised as November-2014. Another project is Chichoki Mallian 525 MW. In this context, modalities/, cost and completion of the project are being finalized.

Source: The Nation