Pakistan's Energy Projects

[Zaki]

Plans afoot to generate 3,000MW in next five years

KARACHI: The government is planning to tap sugar industry resources and to generate around 3,000 megawatts during the next five years to meet power shortage in the country. This will help in reducing the import bill of furnace oil by $980 million.

ìGeneration of cheaper electricity through renewable resources and use of bagasse in the sugar industry will be encouraged,î an official in the National Electric Power Regulatory Authority (Nepra) said, adding that Nepra has taken a landmark decision to provide incentives to those sugar mills who have shown their readiness to generate electricity for the national grid by the end of March 2014.

Announcing its tariff determination for the first sugar mill, which has proposed to generate 80MW through use of bagasse and coal, the regulatory authority has decided that in order to encourage available potential of over 3,000MW through use of bagasse and coal, the internal rate of return (IRR) of 18 per cent on bagasse will be given as an incentive to those sugar mills who achieve commercial operation by March 2014.

The IRR for bagasse at 18 per cent is three per cent higher than the IRR allowed to the thermal projects on residual fuel oil or gas.

The official said that the bagasse based Co-Gen power projects of 3,000MW have the potential to earn over $980 million of foreign exchange per annum that can be spent on the purchase of expensive residual fuel oil for generation during 188 days bagasse-based operations.

It is expected that the tariff of 9.28 US cents per kilowatt per hour will be offered to the sugar industry based on the incentive of higher IRR, which will go a long way in meeting the longstanding demand of the industry.

The country is facing worst kind of power crisis for the last several years and no major addition was made in the generation capacity.

The shortfall, which is being estimated at around 4,500MW, is hurting the national economy and hampering the overall economic activities across the country.

During 9MFY10, power projects of 231MW have started operations and a few more projects of around 1,693MW are likely to start operations in 4QFY10. These projects include rental power projects of 496MW against an earlier expectation of 991MW.

According to the Private Power Infrastructure Board (PPIB), projects of around 1,759MW and 1,425MW are expected to start operations in FY11 and FY12, respectively.

An energy expert believes that the power shortfall will persist till FY13, as the demand will continue to rise in coming years.

[Zaki]

CAMC to invest in coal power, mining sector

ISLAMABAD, Apr 8 (APP): A three-member Chinese delegation of CAMC Engineering Company Limited, here on Thursday called on Chairman Board of Investment (BoI) Saleem H. Mandviwalla to get an insight on the investment policy and the incentives offered to foreign investors in Pakistan.

The delegation, led by Senior Advisor of the company Li Wuquan, is visiting Pakistan since April 5, a BOI press statement said.

The delegation already has met various officials of ministries including Ministry of Water and Power, Capital Development Authority and National Highway Authority.

BoI Chairman appreciated the Chinese companies and businessmen in Pakistan for their continued support and investment towards developing various economic sectors.

He highlighted the policy parameters of investment in Pakistan and a number of fiscal and financial incentives offered to foreign investors.

He underlined the policy, which allows 100 percent foreign equity in the major sectors and full repatriation of profits and dividends in all the sectors.

Saleem Mandviwalla said that Pakistan currently has bilateral investment treaties for investment protection with 48 countries and avoidance of double taxation with 52 countries.

He said that the government was committed to restore macroeconomic stability in the country and it has initiated a ‘9-Point Programme’ to increase productivity, efficiency and high growth.

This programme includes macroeconomic stabilization, social development including social protection, agriculture productivity enhancement, agribusiness and agro process promotion and industrial competitiveness, human capital development, reforms in energy, capital markets, public-private partnerships for infrastructure and institutional building and governance .

It may be recalled that CAMC is one of the leading infrastructure development and engineering companies in China which has shown interest in undertaking government approved mega projects in Pakistan on turn-key basis and have offered to provide finances up to 85 percent of the project cost.

Senior Advisor of CAMC Engineering Company Ltd Li Wuquan said main focus of the company was to invest in coal fired power projects and the mining sector.

He said that the delegation had been briefed on mining opportunities in all provinces of Pakistan, especially in Thar desert in southern Sindh.

[Zaki]

‘Pakistan has potential to generate 50,000 MW electricity’

ISLAMABAD—Pakistan has the potential to generate 50,000 MW electricity from Thar coal field for 800 years while work is on to produce 100 MW power from this field within next 15-18 months.

This was said by Dr. Samar Mubarakmand, Member, Science & Technology, Planning Commission while addressing business community at Islamabad Chamber of Commerce & Industry. He said conditions are very favorable to produce electricity from Thar through coal gasification process.

He said as a pilot project, 100 MW electricity will be produced from Thar while in the next phase 500 to 1000 MW power plants will be installed to generate power through coal gasification. He was optimistic that after about 3 years Pakistan will be able to install first 1000 MW power plant in Thar.

Dr. Samar said power generated from coal gasification will be the cheapest which will be sold to Sindh government at the rate of Rs.3.90 per unit. He said our focus is to produce turbine and generators in the country as 75 percent cost of a power plant is incurred on import of these equipments.

He said Pakistan is blessed with 1.2 trillion dollars copper and goldreserves mostly in Balochistan and our country could become financially very strong by exploiting these reserves. Highlighting other projects, he said textile and garments cities have been set up in many cities of the country to facilitate the businessmen while an Expo Centre at the cost of Rs.2.2 billion is being set up in Lahore for promotion of exports.

In his welcome address, Zahid Maqbool, President, Islamabad Chamber of Commerce & Industry (ICCI) said that manufacturing and industrial units were badly suffering due to shortage of energy and natural energy resources should be utilized to provide cheap energy to industry.

[tomylee1]

i hope it will complete.

[Neo]

‘Gravity can generate 170.1MW electricity per hour’

KARACHI: The fuel-free power generation system can produce 170.1 megawatts per hour using just the force of gravity.

An official of Water and Power Development Authority (WAPDA) Hyderabad, Anwar Ali said Friday briefed director general Pakistan Council of Renewable Energy Technologies, Dr Parvez Akhter about the project.

He suggested to him to calculate energy balance of the proposed process and function, and take help from an engineer of his organisation (WAPDA) and a professor of a local university in the country.

He said, “Major requirements for the plant are a 100-kilometre railway line, along with the conductor used in electric railways, 80 turbines (without diesel engine) capable of generating six megawatts of power each, 6 electric train engines and 24 railway trolleys”.

He defined working of one unit, which consists of one electric railway engine with four trolleys and on every trolley are installed six turbines, each turbine of 6MW.

When his train will move from the top to the bottom the stipulated speed is required by turbine. It will generate 36x4=144MW. Now a question arises: how can this train move up? That is easy. The train will move up by the momentum force and the electric engine will accelerate by the energy before the train comes to zero point.

Dr Akhter said the project needs Rs 20 million for experiment. He wrote to his ministry of science and technology and President of Pakistan for funding.

WAPDA Generation ex-chief engineer, Abdul Aziz Chandio checked and verified the calculation of energy balance of fuel-free power generation system.

Anwar expounded that it was easy to install anywhere in the country but he identified a few ideal places near Nooriabad, Hyderabad, Dadu, Thatta, Rohri in Sindh, Murre, Khewra, near Islamabad in Punjab, Gaddani, Khuzdar, Vicinity of Quetta in Balochistan; Swat, Malakand, Kohat in NWFP and Dir, Chitral, Gilgit in Northern Areas.

He wanted President and the Prime Minister to take personal interest in this power system and to get rid the entire nation of unscheduled and prolonged power outages.

http://www.dailytimes.com.pk/default...0-4-2010_pg5_4

[tomylee1]

very big project.

[Zaki]

Pak to import 1100MW of electricity from Iran


Pakistan will import 1100 megawatts of electricity from Iran. The initial work on two projects has already begun. According to sources, the feasibility report of the project would be completed in the current month. 700 kilometers long transmission line would be installed which would cost 500 million dollar. The project is expected to be completed within five years. Another 100 MW of electricity would be imported to Gawadar. The second project would cost 3.1 million dollars. This project would be completed by the end of 2012.

[Zaki]

Korea to assist hydel power project in Mirpur

MIRPUR (April 11 2010): The Republic of Korea will assist the construction of a grand private-sector Hydel power project. This was disclosed by the visiting Korean Envoy to Pakistan, Shin Un, in a high level meeting with Mirpur division administration on Saturday. He pledged that Korea would lend its complete support for various development projects of the country.

The Korean Ambassador met the division Commissioner, Dr Mahmood-ul-Hassan in his chamber and discussed the issues related to security and the dispensation of other due facilities to the Korean engineers and other staff members to be engaged in the construction of the project at Bong, Mangla near the city.

Senior officers of the Korean Embassy in Pakistan, the ROK engineers including other officials deputed for the project, DIG Police, Dr Liaqat Hussain, Deputy Commissioner, Chaudhry Muhammad Tayyeb, SSP Sardar Gulfraz Khan and other officers of the divisional administration also attended the meeting.

Shin Un expressed complete satisfaction over the law and order situation in the district and praised speedy development and economic prosperity in various parts of the State. He hoped that the Korean engineers to be engaged for the construction of the project to ensure quality work and timely completion of the project. Dr Mahmood ul Hassan assured the Korean ambassador of providing complete security and other assistance to the engineers of his country.

[Zaki]

225 megawatts Power Plant: NB REMACO, Italtec Energy ink deal

ISLAMABAD (April 13 2010): "TNB Repair & Maintenance SDN BHD (TNB REMACO), subsidiary Company of Tenaga Nasional Berhad, Government of Malaysia (TNB) signed an Agreement with Italtec Energy (Pvt) Limited for provision of Technical and Logistic Support Services for the Operations & Maintenance of Hubco Narowal 225 MW Diesel combined Cycle Power Plant.

Nor Azman B Mufti, Managing Director "TNB Repair & Maintenance SDN BHD (TNB REMACO), subsidiary Company of Tenaga Nasional Berhad, Government of Malaysia (TNB) TNB REMACO and Khalid Azam, Chief Executive Italtec Energy (Pvt) Limited signed the agreement for and on behalf of their respective companies. The signing ceremony was held at Islamabad Club. Shahid Bhutto, Federal Minister of youth Affairs graced the occasion as the chief guest.

The signing ceremony was witnessed by Amiri Abu Bakar, Charge d' Affairs of the Malaysian High Commission in Pakistan, Azizan Bin Abdul Rehman, former Managing Director, TNB REMACO, Javed Mahmood, Chief Executive of Hubco, delegates from TNB REMACO, HUBCO, Laraib Energy Limited and guests from the Board of Investment, Islamabad Chamber of Commerce & Industry, Bankers, Doctors & Lawyers. The Federal Minister deeply appreciated Italtec's role in sending it's young professional technical force for job training abroad in collaboration with Ansaldo Energia of Italy which will not only earn a good name for Pakistan but would benefit with the know how of modern technology and earn foreign exchange.

While giving an introductory brief, Salman Ahmed, General Manager of Italtec Energy, informed the audience that Italtec Energy is a Private Limited firm and is in operation in the energy power sector business since 2002.

By signing the agreement with TNB REMACO for provision of Technical and Logistic Support Services for the Operation & Maintenance of Hubco Narowal 225 MW Diesel Combined Cycle Power Plant and the forthcoming imminent Operation & Maintenance of 84MW New Bong Hydro Power Plant, a project of Laraib Energy, and a subsidiary of Hubco, Italtec Energy will be entering in to two mega projects of the country for a period of at least five years.-PR

[Zaki]

Rs 61.5bn coal mining, 300MW power plant project okayed

KARACHI: The Sindh cabinet, which met on Monday under the chairmanship of Chief Minister Qaim Ali Shah, approved a joint-venture project worth Rs 61.5 billion with the Al Abbas Group for coal mining at Badin coal field along with a 300MW power generation plant.

Prior to the decision, a three-member cabinet sub-committee - comprising provincial ministers Sardar Ahmed, Murad Ali Shah and Adviser to Chief Minister Qaisar Bengali - presented their report on the feasibility of this joint venture.

Briefing the media later about the cabinet’s decision, Adviser to Chief Minister for Information Jamil Soomro said the project would be completed in 24 months with an estimated cost of Rs 18.45 billion on coal mining and Rs 43.05 billion on the power plant.

He said the cabinet had also reviewed the allocation of Rs 75 billion for the Annual Development Programme (ADP) of 2009-2010.

The Planning and Development adviser had briefed the cabinet on the ADP, he added.

He also said the cabinet would meet again on Tuesday (today) when the Finance Department would give a briefing.

The ADP of 2009-2010 has the record allocation as against the Rs 50 billion allocated for the ADP of 2008-09, he added.

Responding to a question, he said the coal mining and power plant project would be a joint venture between the Sindh government and a financial group - the Al-Abbas Group - with a 40:60 ratio.

The sub-committee said in its report that the work on the project would start soon, he added.

He further said after the Thar coal project, the biggest investment was coming in the Badin coal field.

He told the media that the agenda for the cabinet meeting remained incomplete because the chief minister had to leave for Quetta to attend to the National Finance Commission Award.

After Wednesday’s cabinet meeting, a detailed briefing would be given to the media, he added.

Sindh Secretary for Information Mumtaz Ali Shah, Director General Safdar Shah and Director Information Muhammad Iqbal were also present on the occasion. app