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Rs103bn power projects approved

Updated August 27, 2013
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.