KESC to invest Rs40b to enhance capacity

Project to be funded through both debt and equity.

KARACHI: The Karachi Electric Supply Company (KESC) will invest Rs40 billion ($400 million) to enhance system capacity and efficiency. The new investment plan will add 47 megawatts (MW) to existing generation capacity over the next three years, a press release said on Wednesday.

Under its new investment plan, KESC is undertaking combined cycle projects at its three power plants in Korangi and Sindh Industrial Trading Estate (SITE) that will enhance the efficiency of these plants by adding 47MW of generation capacity, the statement said.

The specially designed transmission package includes installation of new transformer bays, addition of three new grid stations at strategic locations and extension of six existing grid stations, it said.

These projects will be completed over the next 18 to 36 months and KESC will arrange for the required funding from local and foreign institutions through both debt and equity.

The new investment plan will also allow KESC to convert two of its oil-fired units of 210MW each at its Bin Qasim-I to coal. The company was also undertaking a bio-waste project, which will convert cattle manure and organic food waste to produce 22MW of electricity.

The new investment plan comes at a time when Pakistan is witnessing the dampening of investors’ sentiments, both local and foreign, Tabish Gauhar CEO of KESC said in a statement.

KESC claimed to have already invested around $1 billion over the last four years in various large scale projects.

Published in The Express Tribune, November 8^th, 2012.