KARACHI, July 28: Work on the setting up of a 35-megawatt power plant with hundred per cent foreign investment for providing uninterrupted power supply to the Dhabeji pumping station would begin by the end of October and it would be completed in 18 to 20 months.

This was stated by KWSB’s managing director, Brig Iftekhar Haider, while talking to Dawn on Thursday shortly after handing over the project’s letter of intents to a Chinese consortium.

The US$ 37 million project, to be built by on BOOT (Built-Own-Operate and Transfer), will not only ensure uninterrupted supply to the pumping station but would also meet the power requirements of the on-going 100 mgd K-III and the proposed 100 mgd K-IV projects, he said. The city gets 442mgd from Dhabeji, of its total supply of 552 mgd.

Besides, with the installation of its own power generating unit, the KWSB would save Rs 1.6 billion annualy, and it would overcome the problem of ever-increasing KESC tariff. Thus the KESC would be able to save around Rs 200 million.

Referring to the ceremony in which project’s letter of intent was handed to Mr Li Weicheng, vice president of China IPPR Engineering Corporation, he said the corporation was a part of China National Machinery and Equipment Corporation group, having specialization in power plant engineering and was a a large state-owned enterprise under direct administration of the State Council of China.

The other partner of the consortium is California-based Energy-Saving Solutions Inc (ESS), while the project consultants are NESPAK.

Unfolding the details of the project, he said though the KWSB’s maximum power requirement is 35 megawatts, the plant’s installed capacity would be 48.75mw under ISO Conditions while the power supply capacity under site conditions would be 40.3mw.

“In fact, there would be an all time availability of 28 megawatts supply even during its maintenance or shutdown,” he said, adding the plant would be handed to the KWSB after 25 years on a token amount of just Re one.

Terming the project “economically viable”, Brig Haider said the project’s financial model is based on 25 years concession period, debt repayment is 15 years while the consortium has been offered a tariff of Rs 3.97/kwh for 15 years, after which the tariff would be reduced to Rs 3.70 kilowatts per hour.

Asked whether the tariff would be cheaper than the KESC’s present rates, the KWSB chief replied in the affirmative, saying keeping in view the KESC’s present tariff, there would be a saving of Rs one per unit.

“The plant will have three gas turbines power generating sets (GTS) and the power generating capacity of each set would be 11mw and 8.53mw (under site condition),” he said, adding the only escalation factor would be the price of gas but its requirement above 28 mw will be further cheaper.

A formal agreement will be signed between the KWSB and the CIPPREC in the end of September this year.

DMD Technical KWSB Asrar Zaidi, Project Manager Amjad Habib and Project Director of the Chinese firm, Gao Ji, were also present.

Earlier, speaking at the ceremony at KWSB head office, CIPPREC vice president Liwei Cheng said his company had so far set up more than 100 power plants in China and besides Bangladesh, it had also set up power plants in Bestway Cement, Taxila and Uch in Pakistan.