THE Capital Development Authority’s initiative for installing a coal-based 2x100MW power project in Islamabad is a welcome step. However, the plant is scheduled to start producing electricity by 2020.

Emulating the long-established American municipal power companies, the CDA intends to set up, implement, operate and maintain power generation projects in public sector/joint venture mode. Besides planning and development, the CDA has powers of a municipal committee in the Islamabad capital territory.

The authority has initiated action to hire the services of a consulting firm for carrying out feasibility studies, tender design and tender documents, bid evaluation, award of contract and construction supervision for the project.

The CDA has invited Expression of Interest (EOI) from the consulting firms for short listing to perform the above assignment. It has informed the consulting firms that they may associate or form joint ventures with local or foreign firms to enhance their qualifications subject to maximum of three firms as per rules.

The EOIs are to be submitted within nearly three weeks, and chances are that the consultant firms may seek extension in the last date for EOI submission.

The CDA is said to have already signed a memorandum of understanding with a Chinese firm to extend assistance in executing the coal-based power project. Perhaps this firm may provide in-house assistance to the CDA whereas the consultant firm selected through EOI and RFP process will be doing the prescribed work.

The proposed power plant is likely to generate surplus electricity which would be sold out to the government.

Islamabad is a growing city and its population is on the increase. One only wonders why the CDA with all its resources has not been able to generate power from garbage in the area. The supply of garbage will increase with the city’s growth.

Such a project will ensure cleanliness in the area and bring environmental benefits. Such plants would also serve as ‘pilot projects’ to the CDA and other interested city governments and housing societies.

The government is reported to be working on a plan to give incentives to large housing societies, industrial and trade hubs and cities to help set up their own power plants. Some industrial cities like Sialkot and Faisalabad and large housing societies like Defence Housing Authority have shown interest in investing in power generation.

Located near the seat of power in Islamabad, the CDA can act as trailblazer for municipal projects like Hubco had done in the private sector power generation in Pakistan some 25 ago. It may be recalled that the DHA, Karachi, was one of the sponsors of Defence Co-Gen Power plant.

Power generation is capital intensive undertaking with long-term investment, its gestation period spanning over 5-7 years and in some cases up to 10 years. IT calls for strong commitment from all stakeholders.