Gaddani Power parks: Two coal-based plants cleared by premier

The previous government had withdrawn its decision to construct the plants due to financial constraints.

LAHORE:

Prime Minister Nawaz Sharif on Saturday cleared the decks for two coal-based power plants of 1,320MW at Gadani Power Park in Balochistan.

The approval came following a detailed discussion on the momentum of work on the Gadani Power Park.

Officials present at the meeting said the premier – while presiding over a high level meeting on Public Sector Development Programme (PSDP) in Islamabad on Friday – had decided to initiate the two projects in the Independent Power Project mode in order to speed up the completion of Gadani park.

Sources said Nawaz during his PSDP meeting had saved some amount, which forced him to start work on the two projects in the form of a public private partnership.

According to an official handout, the PM directed that sufficient funds be allocated for these projects in PSDP.

The master plan of Gadani Power Park envisages construction of 10 coal-fired power plants, each having capacity of generating 660MW of electricity. It also provides for construction of a jetty, where coal will be unloaded from ships.

The project will have all the required facilities, including cooling plants, conveyer belts, storage facilities and ash disposal mechanism. The plan also envisages connecting the plants with the national grid.

The handout states that earlier the PM was given a briefing on the status of the project. He was told that the feasibility study of the infrastructure installation would be completed by end of June. The environment impact study will be completed by June 30.

The officials apprised the PM that few Chinese investors had shown interest in constructing their coal-based power plant in the park.

“The attractive tariff for coal fired power plants has drawn investors from across the world to invest in Pakistan’s power projects,” Nawaz is quoted as saying. He also appreciated Chinese investment in the energy sector, especially in Gadani Power Park.

The officials said an ‘attractive tariff’ of  $8.5 cent per KWhr was offered. Such tariffs have lured Chinese investors to Pakistan and encouraged them to set up their plants, he added.

Officials told the prime minister that the work on land levelling and grading on the site would start within three weeks and be completed in three months. He was also briefed that the coal handling and conveying system infrastructure would be installed in 22 months. Similarly, jetty break water and allied infrastructure would be completed in 32 months, the said.

Published in The Express Tribune, May 25^th, 2014.