July 18, 2006	Tuesday	Jumadi-ul-Sani 21, 1427

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ISLAMABAD, July 17: The government has decided to import immediately a second-hand 150MW thermal power station from the United States to partially offset the current energy crisis but the country would continue to face 800-1200MW power shortfalls at least for the next two years in peak summer.

A senior government official said the quickest way to start additional power production was to import pre-commissioned plant from the United States on a three-year rent. “It would be installed near Multan within 70 days and would be Pakistan’s first ever rented power plant”, he said.

The plant is estimated to produce electricity at a tariff of about 3.2 US cents per unit excluding fuel cost that would be borne by the Wapda and translate into an overall tariff of slightly over four cents per unit.

The energy crisis would, however, not be over until August 2008 because the next power plant to come on stream would be Wapda’s thermal plant at Chichuki Malyan with 340MW production in August 2008 and another 160MW by Dec 2008.

A Wapda official said the electricity shortage had come down to almost zero in the last few days as result of higher hydel power generation from Tarbela and Mangla dams but has again risen to about 400-500MW on Monday mainly because of transmission problems after providing about 750mw to Karachi. The production from two dams has increased to 5,600MW from 4,900mw a week ago against an installed capacity of 6,100MW.

The source said the secretary water and power has finalised a short-term strategy to overcome power crisis on Tuesday in consultation with the Wapda and Kesc for presentation to the prime minister on Wednesday.

These sources said the commissioning of four second-hand thermal stations donated by the United Arab Emirates of 320MW was expected to start by mid of next year. Of these, an 80MW plant would be installed at Shahdra in Wapda’s jurisdiction and would take about 11 months from now on.

The plant was commissioned in the UAE in 1996. The whole dismantling, transportation to Pakistan and installation was being done by the UAE government as donation to the people of Pakistan. The remaining three plants of 80MW each of 1975 model would be donated to Karachi and would take more than 15 months to start production, these sources said.

The sources said Wapda has operationalised a new 220KV line from Jamshoro to TM Road in Hyderabad on Sunday besides commissioning seven 220KV grid stations in the last few months at a cost of Rs14 billion.

These sources said Wapda has been authorized by the government to install three furnace oil based thermal power stations in Faisalabad, Nandipur and Lahore with a total capacity of 600mw on supplier’s credit. Wapda has already advertised these plants for construction and provision of suppliers’ credit. These plants would come on stream in June 2008.

Similarly, Wisdom Associates, a local group has been asked to install a 117MW station in Aimanabad near Gujranwala within 15 months.