Minister for Planning and Development Ahsan Iqbal. - File Photo
Minister for Planning and Development Ahsan Iqbal. - File Photo

ISLAMABAD: The Central Development Working Party (CDWP) on Monday cleared a total of 13 projects in the power sector having an estimated cost of Rs103 billion, including a feasibility study for setting up a 6,600MW power corridor at Gadani.

The meeting, presided over Minister for Planning and Development Ahsan Iqbal and attended by sponsoring agencies and provincial governments remained focused on energy sector projects.

The minister told the participants about government’s top priority to produce cheap and affordable energy and make it self-sufficient in energy supply but added that if proactive approach was not adopted for building water reservoirs, the country could face bigger problems in 10 years than what it faced now.

The meeting approved or recommended for approval by Executive Committee of the National Economic Council (Ecnec) a total of 13 projects with a total cost of Rs103bn, including foreign assistance of Rs8.2 billion.

Since the CDWP is authorized to approve projects costing up to Rs1bn, it approved five projects having a cumulative cost estimate of Rs2bn while recommended 8 projects of Rs101bn for formal approval by the Ecnec.

The CDWP approved PC-II to conduct feasibility study for Gaddani Power Park Project costing Rs100 million.

The cost of the feasibility study will be provided from the Public Sector Development Programme (PSDP) for the construction of Energy Park to produce 6600 MW electricity at Gaddani.

A company Pakistan Power Park Management Ltd., fully owned by the federal government, has been established to arrange finances through Special Purpose Vehicle to fund projects at Gaddani.

It also approved two projects of Pakistan Atomic Energy Commission including Detailed Exploration of Uranium Resources in Bannu Basin and Kohat Plateau, Phase-II and Detailed Exploration of Uranium Resources in Dera Ghazi Khan - Phase-VIII costing Rs634m and Rs726m, respectively.

The CDWP also approved a revised PC-I of Pakistan Nuclear Regulatory Authority Establishment of National Dosimetry and Protection Level Calibration Laboratory (NDCL).

The committee cleared and recommended three major projects of the Khyber Pakhtunkhwa government for formal approval of the Ecnec, given the fact that the cost of these projects was higher than powers of the CDWP to grant approvals.

Three hydropower projects sponsored by Government of Khyber Pakhtunkhwa, namely “Sharmai Hydropower Project costing Rs33bn, “Engineering Procurement and Construction (EPC) of Shogo-Sin HPP District Chitral” costing Rs27bn and “Engineering Procurement and Construction (EPC) of Shushgai HPP District Chitral” costing Rs29bn were recommended by CDWP for approval of Ecnec.

A total of 425MW electricity would be produced from these projects.

These projects will be financed on public private partnership mode for which 10 per cent of the cost would be borne by government of Khyber Pakhtunkhwa from its resources whereas 90pc of the cost would be arranged by private sector.

Under Punjab’s Renewable Energy Development Sector Investment Programme, revised PC-I of construction of five hydel power stations (run of river hydropower projects) each at Chianwali, Pakpattan, Deg-out, Marala and Okara together costing Rs12bn having total capacity of over 24MW were considered and recommended by the CDWP for approval of Ecnec.

The 80pc cost of these projects would be met through a loan of the Asian Development Bank.

The committee also approved concept clearance of a number of projects for conversion of furnace oil or gas based power plants to coal generation.

These included conversion of furnace oil and gas fired boilers to coal of 450MW Units 1&2 Thermal Power Station at Jamshoro, conversion of furnace oil boilers to coal of 1350MW Units 1-6 Thermal Power Station at Muzaffargarh and installation of new coal fired power plants having a capacity to 1320MW (660x2) at Jamshoro.

The committee also cleared concept paper for implementation of Dassu Hydropower Project and Central Asia-South Asia (CASA-1000) power project for supplying 1000MW of electricity to Pakistan.

The committee noted that construction of water reservoirs was very important for future of the country and hence Diamer Bhasha Dam has to take precedence over all other projects in the water sector.

Due to financial crunch, the committee concluded that the government may build Diamer Bhasha Dam water reservoir first because it would not only provide additional water for irrigation but feed during off season the power generation projects at Tarbela dam.

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Comments (5) (Closed)


mba
Aug 27, 2013 09:30pm

I am happy, someone is trying to solve chronic energy problems in Pakistan. It is difficult for me to understand two factors: 1) Big investment in potentially dangerous nuclear technology (I am an Engineer with over 25 years of industrial experience in Europe and am also one of three authors of the first catalogue on nuclear standards.) 2) I do not find any investemnt position for solar or wind energy. These are future technologies. Most of the big energy-related firms in Europe are involved in these sectors. Why should Pakistan oversee these opportunities?

Ahmed
Aug 27, 2013 11:53pm

Not a bad start. I hope and pray that most the projects are realized.

Tamza
Aug 28, 2013 03:36am

That is great news. Rs 100B = USD 1B Estimated generation [coal] is about USD 1/ w So U$D 1B would translate to about 1000MW at most That should take care of the problem .. about one-tenth of it, that is.

vigilant
Aug 28, 2013 12:01pm

More hydro-power projects & Dams are need of the hour

fawad
Aug 28, 2013 09:44pm

mba, don't be so happy. these projects are different ways of corruption. billions of rupees will be invested and contract will be given based on commission provided. Most of the money will go to the kitty of ruling politicians. Moreover projects will never finish. But I am sure poor people will finish. I am not pessimistic but in past, many project were started but never finished and new Government always blame the prior government.