ISLAMABAD: The federal government has decided to make special logistic and infrastructure arrangements to help Punjab set up 7,800MW of coal-fired power plants.

On Tuesday, Finance Minister Ishaq Dar and Punjab Chief Minister Shahbaz Sharif co-chaired a special meeting at the Prime Minister’s House and reviewed logistics requirements for imported coal transportation to proposed power plants in Punjab.

Federal Minister for Railways Khawaja Saad Rafique informed the meeting that Pakistan Railways had made initial study for a route map to transport imported coal to six coal-fired power plants to be set up in Punjab. He said that necessary work for double line up to Lahore was already in progress while procurement of high traction locomotives and high capacity wagons would be required to meet the expected demand of transporting 36 million tons of coal per annum by year 2018 when all coal-fired power plants would become operational.

The Ministry of Port and Shipping reported that the capacity development at Port Qasim and Karachi Port Trust would have to be undertaken on urgent basis for loading and unloading arrangements at terminals. This would require involvement of the private sector to enhance the capacity at the two ports. Water and Power Secretary Saifullah Chattha told the committee that sites for the proposed power plants in Punjab already had the necessary infrastructure of transmission lines and capacity to meet the requirements for evacuation of power generated from proposed sites. But in some cases only additional transmission lines would need to be put up and this would be done through joint venture partnership basis with the private sector.

Finance minister Dar said that instead of separate feasibility reports by each of the three ministries – water and power, ports and shipping and Railways – an integrated feasibility plan, in collaboration with infrastructure project development facility (IPDF) of the finance ministry, should be prepared to ensure minimum extra logistic arrangements.

He said that wherever possible, public-private partnership or joint ventures with the private sector should be explored. He said that the site selection for coal-based projects should be made keeping in view the availability of dual railway track, transmission lines and related infrastructure.

Punjab Chief Minister Shahbaz Sharif said that the environmental impact assessment should be made at the earliest and informed the meeting that 660MW capacity of coal projects were considered more efficient in the world.

He said the Punjab government planned to complete two power plants of 1320MW each by 2017 and the remaining four by year 2018. He said that two pair each at six sites would produce 7820MW of electricity which would fill the gap between demand and supply even in summer.

He said that for the industrial development of the country there was dire need to shift to cheaper fuel and more efficient power plants.

The provincial government has already invited bids for six power plants at selected sites of Qadirabad near Sahiwal, Bhikki near Sheikhupura, Havelli Bahadur Shah near Jhang, Balloki near Kasur, Trinda Sawaywala near Rahimyar Khan and Mouza Syedawala near Muzaffargarh.

The Punjab government expected an investment of up to $10 billion in these coal-based power projects. For most of these plants, coal would have to be initially imported and transported through the rail route to Punjab from Karachi and later locally-produced coal from Thar would also be utilised depending on its large-scale mining.