Planning ahead: UAE company to set up coal-based power plants in Karachi

Burj Power will invest up to $700 million in four projects.


Our Correspondent February 21, 2013
Electricity produced by the coal-based plants will cost approximately half of what electricity costs if generated using oil. PHOTO: FILE

KARACHI:


UAE-based Burj Power will invest up to $700 million in developing four coal-based power plants of 125 megawatts (MW) each at Port Qasim, Burj Power CEO Shahzad Qasim said on Thursday.


Speaking to The Express Tribune after signing a formal agreement with a representative of Harbin Electric International – the technical partner for the project – Qasim said the first plant of 125MW generation capacity will become operational by 2016. “We will try to add one plant annually 2016 onwards, until we achieve 500MW capacity,” he said.

The first phase of the project alone will cost up to $170 million, while the total cost of the project is expected to be between $650 million and $700 million, Qasim noted.

However, he did not state the expected tariff per unit of the electricity generated through the project, saying that Burj Power will approach the National Electric Power Regulatory Authority (Nepra) within the next six months to determine the rate at which it will sell electricity to the Karachi Electricity Supply Company (KESC).



“We have yet to finalise a power purchase agreement with KSEC. After that, Burj and KESC will go to Nepra together for the finalisation of the tariff,” Qasim said. He said that electricity produced by the coal-based plants will cost approximately half of what electricity costs if generated using oil. The project will be constructed near the upcoming coal and clinker terminal being developed at Port Qasim.

Burj Power is a UAE-based power project development and advisory firm, which is developing projects in key markets of the Middle East and Africa. It is also developing three wind power projects in Pakistan. The company is part of the Burj Capital group, which is also involved in the investment banking, retail, agriculture and oil and gas sectors.

Harbin is a Chinese power engineering, manufacturing and construction group with an established base of over 30,000MW of thermal power plants. It was also the engineering, procurement and construction contractor for the recently-completed Bin Qasim Combined Cycle Power Plant, which is producing 560MW of electricity for KESC.

Published in The Express Tribune, February 22nd, 2013.

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COMMENTS (17)

cautious | 8 years ago | Reply

Nice picture -- can you image that belching smoke in the heart of Karachi? Anyone ever heard of a Financial Capital anywhere in the World that has coal fired generating plants located in/near it? - didn't think so.

p r sharma | 8 years ago | Reply

@No_one: @ MSH change your search criteria and search for Burj Capital Pakistan and you will get the right holding co for Burj Power, which is located in Dubai "

Mr. No_one Though your reply was to @MSH bur curiously i searched the google for Burj Capital and found that it is a Karachi based company engaged in the activities offering equity, commodity, and institutional brokerage services. It provides futures, money market, and foreign exchange brokerage; financial restructuring; asset disposal; feasibility study; and valuation services. . Burj Capital Pakistan (Private) Limited operates as a subsidiary of FI Management Company Limited.( google search for FI Management company Limited drew a blank except one located in UK) Burj capital, the name itself indicates its activities. It has no expertise of running an Industrial unit as complex as power plant.. All this raises doubt that the news clip relates nowhere to reality. sorry..

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