Infrastructure and Transport News

[white_pawn]

Pakistan has experienced a high level of activity in its infrastructure sector in 2008. This has mostly been focused on the power sector and the road network. In addition, construction of housing has been a top priority. However, the global downturn is hitting Pakistan hard, and in BMI's 2009 Annual Infrastructure Report for Pakistan we are forecasting the construction industry to contract by 6.31% y-o-y in 2009.

The power sector has been the major focus in Pakistan's infrastructure sector in 2008. Years of underinvestment in electricity generating and distributing infrastructure came to a head in 2008, when there was not enough supply to meet demand, further exacerbated by lack of rainfall almost knocking out Pakistan's large hydropower sector. It is currently estimated that there is a 3,300MW shortfall in capacity at peak hours; as a result, load shedding has been a common practise.

In an attempt to combat the shortages, a US$30bn investment plan has been announced, which has seen the development of a number of projects. Construction started in 2008 on the 969MW Neelum-Jhelum power plant, which is being built by a consortium comprising Chinese Gezhouba Group Company and China Machinery Export Corporation. Construction of the Diamer Basha Dam, which will have a capacity of 4,500MW once completed, is expected to start in 2009.

Within the transport sector, the roads have benefitted from the majority of attention in 2008. This has been the result of the National Highways Authority's plans to invest US$5.36bn into the sector. The plans benefitted from a US$900mn multi-tranche loan from the Asian Development Bank. The main project being pursued is the National Trade Corridor, envisaged as a main thoroughfare connecting the north of the country to the ports in the south; it is estimated to cost US$6.58bn.

Construction of housing has been a major feature in 2008. Residential construction is being carried out under the prime minister's 'mega housing scheme' which involves the construction of one million low cost houses per year.

Pakistan's economy has been hit hard by the global economic downturn and BMI's is forecasting real GDP growth of 2.5% y-o-y in 2009, down from 6.8% in 2007. In November, the country received a US$7.6bn 23-month standby loan from the International Monetary Fund to 'support the country's economic stabilisation programme'. The move might help boost investor confidence in the short term; however, it may put off investors looking at long-term infrastructure investments. Consequently presenting a down side risk to our forecasts.

In BMI's 2009 Annual Pakistan infrastructure Report we are introducing our new project finance ratings.

The ratings provide a globally-comparative, numerically based assessment of the risks facing major infrastructure projects. Pakistan comes last in our Asia project finance ratings, with a score of 32.93 out of 100.

Report: Pakistan Infrastructure Report 2009 (BMI03618) from ReportBuyer.com

 

[white_pawn]

Pakistan seeks $273m from Friends for Basha dam​

ISLAMABAD: The country sought $273 million from the Friends of Democratic Pakistan (FoDP) for construction of multi-billion-dollar Diamer-Basha dam in the next fiscal year 2009-10, it is learnt.

According to a financial summary tabled before the FoDP, a copy of which is exclusively available with The News, for establishing Gwadar linkages with China, Afghanistan and upgradation of Karakoram Highway (Mansehra to Sazin 258km), Pakistan has sought $594 million and $256 million respectively from the donors.

For establishing a new railway link connecting Gwadar Port to Mastung/Quetta, Pakistan has sought $1.342 billion over a period of nine years. The government asked the donors to provide $30.388 billion for 24 development projects over a span of 5 to 11 years. The government plans to launch National Employment Programme and for that it sought $321 million from the donors.

For Thar coal development, the government has sought $1.750 billion from the FoDP over the next five years. In first year, it requires $20 million in first year, $355 million in second year, $359 million in third year, $516 million in fourth year and $500 million in fifth year.

For construction of Diamer Basha Dam in water sector, the government has asked the donors to provide $5 billion over the next 11 years out of which in first fiscal year, Pakistan requires $273m, second year $183 million, third year $349m, fourth year $663m, fifth year $663m, sixth year $741m, seventh year $767m, eighth year $555m, ninth year $302m, tenth year $252m and eleventh year $252m.

The government has sought $2.3 billion funding for protection of irrigation infrastructure over the next 6 year period. In the first year, the protection of irrigation infrastructure requires $170 million, $280 million in second year, $510 million in third year, $495 million in fourth year, $495 million in fifth year and $350 million in sixth year.

In order to construct 32 small dams in all over Pakistan, Islamabad’s authorities asked the donors to provide $1.434 billion in the next five year period out of which in first year, $134 million will be required, $300 million in second year, $300 million in third year, $300 million in fourth year and $400 million in fifth year. The sub total of Diamer Basha dam, protection of irrigation infrastructure and 32 small dams, would cost $8.734 billion out of which Pakistan required $577 million in the next financial year 2009-10.

In the area of most neglected agriculture sector, the Gilani government has sought $2.880 billion over the next five year period from the donors in order to increase efficiency, productivity and value addition. For increasing post harvest efficiency, Pakistan requires $1.515 billion in the next five years out of which first year requirement will be standing at $424m, second year $455m, third year $485m, fourth year $75m and fifth year $76m.

For another development project titled ‘Productivity Enhancement’, Islamabad has sought $390m from the FoDP over the next five years. The first year requirement will be $66m, second year $72m, third year $79m, fourth year $83m and fifth year $90m. The government also devised a development project for value addition and institutional development of the agriculture sector with estimated cost of $975m over five year period out of which the country required $173m assistance in first year, $200m in second year, $215m in third year, $187m in fourth year and $200m in fifth year.

On development projects related to reducing cost of doing business, Pakistan sought $975m from FoDP forum over the period ranging from 2 to 7 years. For construction of Lawari Rail Tunnel road, Islamabad requires $125 million out of which $100 million will be required in first year and $25 million in the second year.

To establish Gawadar linkages with China and Afghanistan, Pakistan requires $594m over the next five years out of which the first year requirements will be standing at $75m, second year $80m, third year $100m, fourth year $169m and fifth year $170m.

For upgradation of Karakorum Highway road, Islamabad has sought $256m from the FoDP over the next seven year out of which the first year requirement would be $37m, second year $43m, third year $43m, fourth year $56m, fifth year $46m, sixth year 16m and seventh year $15m.

For Railways, the upgradation of Quetta-Koh-i-taftan section, the government sought $438m over the next four years period out of which it required $100m in first year, $150m in second year, $100m in third year and $88m in fourth year.

To establish new link connecting Gawadar Port with Mastung/Quetta, the total estimated cost stood at $1.342 billion out of which Pakistan required $150 million in first year, $175m in second year, $175m in third year, $175m in fourth year, $175m in fifth year, $100m in six year, $100m in seven year, $175m in eighth year and $117m in ninth year.

For ports and shipping, the government devised a development project titled support for private sector investment in shipping and sought $75m for the next two years.

For developing capacity for capital and maintenance dredging (upgrading port handling capacity), the government has sought $50m in the next two year. The government also sought $50m for Pakistan National Shipping Corporation in the next fiscal year 2009-10. For mineral development, the government asked the donors to provide $155m over the next three years.

For poverty alleviation, empowerment and employment, the government asked the donors to provide $5.959 billion over the next five years. The access to health services required $1.102 billion in five years. The girls secondary school education require $1.858 billion, safety net for vulnerable $363m, skills development for livelihood $652m, National Employment Program $321m and Population Welfare Program $140m in the next five years.

For meeting requirements of energy sector, Bunji Hydropower Plant required $6.095 billion. The funding requirement for Bunji Hydropower project will start from fourth year by seeking $480m in fourth year, $600m in fifth year, $840m in sixth year, $960m in seventh year, $960m in eighth year, $840m in ninth year, $720m in tenth year and $695m in eleventh year.

For Guddu Thermal Power, the government sought $710m over the next four years. For institutions building, the government sought $1.150 billion out of which $230m would be required in each year over the next five years.

Pakistan seeks $273m from Friends for Basha dam

 

[Neo]

Need for small dams in Sindh stressed​

KARACHI (June 01 2009): The shortage of water in Sindh province is continually affecting agriculture sector which may cause increase in poverty ratio and more problems to masses and the only single option to address the issue is that construction of small dams to preserve rain water. This was stated by the Advisor to the Sindh Chief Minister, Sharmila Faruqui, in a statement issued here on Sunday.

She further said that a large number of people visiting Sindh Secretariat from interior Sindh usually complain of shortage of water.

'Most part of population of Sindh depends on agriculture sector and low water level in Indus river has caused financial difficulties to them,' she added. 'Although 1991 Water accord cannot be implemented in letter and spirit but blaming other provinces for shortage of water is not only solution to the phenomenon. I have discussed agriculture related experts who suggested only construction of small dams with immediate effect to bring the province out of water shortage crisis,' Faruqui said.

She maintained that as many as 40,000 acres of land have been distributed among poor Harri female peasants, so far, out of total earmarked 0.2 million acres for them. These farmer families need smooth supply of water to cultivate their land. Right Bank Canal and Left Bank Canal projects in the province were not cleared of faults and shortcomings.

However, constructing small dams in Keerthar Mountain Range and along flood water routes can support our fragile agriculture while it will also meet shortage of drinking water in areas, particularly Thatta, Badin and Mirpurkhas districts, she added.

 

[Neo]

Chiniot dam project being launched​

LAHORE (June 01 2009): Senior Punjab Minister Raja Riaz presiding over a departmental meeting here on Sunday said that Chiniot Dam Project was being launched at cost of Rs23.30 billion in district Chiniot. He said the Dam would have the storage capacity of one-million-acre feet.

He said feasibility study of these areas had been conducted by the assistance of Wapda. He said private sector could contribute with the Punjab government in full filling the dearth of electricity and water in the country.

 

[Neo]

Zardari advises to develop new model infrastructural projects ​

ISLAMABAD (June 03 2009): The President, Asif Ali Zardari has advised the government to consider developing a new model for undertaking big infrastructural projects by involving private sector banks through equity sharing. He made this observation on Tuesday during a briefing on the Public Sector Development projects for the year 2009-10. The President said that the new model should be tested on an experimental basis and if it is proved workable, it may be replicated.

The President said that due to pressure on equity with the government, the private sector might be induced for equity participation in the infrastructural projects. He said that by adopting this model, new avenues could be opened for undertaking new developmental project more aggressively.

Shaukat Tarin, Finance Advisor, Sardar Aseff Ahmed Ali, Deputy Chairman Planning Commission, Hina Rabanbi Khar, MOS for EAD, M Salman Faruqui, Secretary General, Salman Siddique, Secretary Finance, Ashraf M Hayat, Secretary Planning and Development attended the meeting.

It was decided to hold another meeting on the public sector development programme to review the status of all projects in different parts of the country. The next meeting, to be held soon, will be attended by the Prime Minister also.

 

[Neo]

German firm to set up 13 underwater cradles at KSEW​

KARACHI (June 10 2009): Karachi Shipyard and Engineering Works (KSEW) is installing a state-of-the-art "Ship Lift and Transfer" system at its seawater front at the cost of Rs 3 billion. According to sources, KSEW had recently signed an agreement with a German firm for the development of at least 13 "Ship Lift and Transfer" stations at its PIDC channel.

Under the contract the German company would set up 13 underwater cradles at KSEW within next two years, they added. They said the federal government-sponsored project would be financed in different tranches through Infrastructure Project Development Facility (IPDF).

Work on the 13 new facilities, which are envisioned to revolutionise the underwater ship-repairing efficiency of KSEW, had been started last month and would be completed by 2011. The stipulated time for the commissioning of under development stations was May 2011, said the sources. At present KSEW has only two dry docks, ie No 1 and 2, having the capacity of handling ships of 26,000 DWT and 18,000 DWT respectively, they added. The two docks are 189 and 171 meters long and 27 and 24 meters wide.

About the existing "time-consuming" working procedure of two facilities, they said, seawater is first filled in the docks to float the repairable vessel in, and then pumped out to clear space for the repair work. However, under the new set up the fixable ships would be anchored directly at the underwater cradles, which would automatically lift and transfer them to the parking facilities for repair. And the whole process would last within few hours, they said.

According to a KSEW official once constructed the new stations would not only boost working capacity and efficiency of the shipyard, but also help the formerly crisis-hit organisation increase its profit and create employment opportunities. "After two years we would have 13 plus two (docks) Ship Lift and Transfer stations that would benefit us on multifaceted fronts, like the profit, efficiency, employments etc," he added.

 

[AgNoStiC MuSliM]

Major projects put under Special Infrastructure​

Wednesday, June 17, 2009
By Umer Bhatti

LAHORE

The Punjab government has created a new head of Special Infrastructure in the Annual Development Program (ADP) and put major infrastructure development projects including Lahore Ring Road Project, (LRR), Sialkot-Lahore Motorway (SLM) and Lahore Rapid Mass Transit System (LRMTS) projects into the head.

The projects are, technically, included in the infrastructure development head but the government has created a new head for it without mentioning its need in the budget documents. The LRR and SLM projects are the road infrastructure development projects. The government has reduced the allocation for the road development by 25.2 per cent in this fiscal year but allocated a hefty amount for these projects.

The government allocated a total of Rs 25.048 billion for the development of Special Infrastructure, out of which 11.834 billion rupees have been allocated for the on-going schemes and 13.214 billion rupees for the new schemes.

The special infrastructure sector comprises the mega projects catering for major urban (intra-city and inter-city) transit and transportation requirements.

The current yearís development program (2009-10) includes Lahore Ring Road (LRR), Sialkot-Lahore Motorway (SLM) and Lahore Rapid Mass Transit System (LRMTS) projects.

The ongoing projects of Lahore Ring Road (LRR) and Lahore Rapid Mass Transit System (LRMTS) have been given a hefty amount even in this budget (2009-10).

The total cost of the LRR and LRMTS is Rs 22.805 billion and Rs 1.952 billion respectively in the fiscal year of 2009-10.

The Sialkot-Lahore Motorway, a new project, will be started this year and a total of Rs 290 million have been allocated for its construction.

A total of 44 schemes are underway for the LRR out of which, 33 schemes are already underway while 11 schemes will be new.

Similarly, there are 4 ongoing schemes for LRMTS and 4 schemes will be new in this project.

On the other hand, 3 schemes will be started for the construction of Sialkot-Lahore Motorway which is a new project in this budget altogether.

The construction of LRR has been divided into four sections i.e. North Loop (civil works), North Loop (land acquisition), South Loop (civil works) and South Loop (land acquisition).

The major Ongoing Schemes of LRR, North Loop (civil works) which have been allocated the amount in the current budget are Establishment of PMU, Lahore Ring Road costing Rs 194miillion, Lahore Ring Road Construction of Interchange at Saggian Chowk costing Rs 793 million, Lahore Ring Road Construction of Road Portion from Barki Road Intersection to Ghazi Road Intersection costing Rs 1.120 billion, Lahore Ring Road Construction of Interchange at Airport Access Road costing 856 million, Lahore Ring Road Construction of Interchange at Harbanspura Canal Crossing costing 1.169 billion, Lahore Ring Road construction of Interchange at Ghazi Road costing 1.606 billion, and Lahore ring Road Construction of Interchange at Bedian Road costing Rs 1.529 billion.

There is only one new scheme in this North Loop (civil works) which is Construction of Additional Underpass/ Flyovers at the Left-Over Crossings in Lahore Ring Road project costing 372 million rupees.

There are total 13 Ongoing Schemes for North Loop (Land Acquisition) in the current budget costing Rs 1 million each.

The only new scheme under North Loop (Land Acquisition) is land Acquisition for Construction of Additional Underpass/ Flyovers at the Left-Over Crossings in Lahore Ring Road Project costing Rs 987 million.

Similarly, there is only one ongoing scheme for the South Loop (Civil Works) which is Feasibility Study, Selection of Route and Detailed Engineering of Lahore Ring Road (Southern Loop) costing Rs 2.7million.

Whereas, a total of six new schemes will be underway in the South Loop (Civil Works) costing Rs 1.997 billion.

On the other hand, there is only one ongoing Scheme under South Loop (Land Acquisition) costing Rs 1 million.

Whereas, a total of three new schemes will be underway under South Loop (Land Acquisition) Project costing Rs 8.999 billion.

The second mega project whose detailed feasibility had been finalized in December 2006, and which was given a share in the previous budget and in this budget as well, is Lahore rapid Mass Transit System (LRMTS).

This is a network of mass transit corridors comprising 4lines spread over 97km distance with 82 stations with Ferozepur Road as the top priority corridor- called ëGreen Lineí.

This Green Line has a length of 27km traverses from the south at Hamza town along Ferozepur Road to Fatima Jinnah Road, The Mall, Lower Mall, Ravi Road and after crossing the River Ravi, ends at its terminus in Shahadra. A total of 22 stations are located along the Green Line.

The LRMTS targets for the fiscal year 2009-10 are, removal of utilities services by LESCO, WASA, PTCL, NTC and SNGPL, Engagement of Transaction advisor for preparatory work of LRMTS, Engagements of the general consultants to oversee the project, and Tendering for the design- build LRMTS execution contract during year 2009.

Currently, there are four ongoing schemes under LRMTS Project costing Rs 1.856 billion.

On the other hand, a total of four new schemes will be started in LRMTS project in the fiscal year 2009-10, costing Rs 843 million.

The construction of Sialkot-Lahore Motorway will be a new venture in the current budget and a total of three new schemes have been devised for this purpose costing Rs 300 million.

This Motorway will link Sambrial Dryport near Sialkot with Lahore city east of Niazi Chowk Interchange on Lahore Ring Road. The Motorway might extend up to Kharian in the future in the wake of a bigger project.

Major projects put under Special Infrastructure

 

[Neo]

Upgrading Quetta-Taftan track: Railways to seek $500 million ADB loan​

ISLAMABAD (July 01 2009): Pakistan Railways will seek $500 million from Asian Development Bank (ADB) to upgrade the Quetta-Taftan broad gauge track to international standard for launching the Economic Co-operation Organisation (ECO) container train for Islamabad-Tehran-Istanbul route.

Sources in the Railways Ministry told Business Recorder here on Tuesday that the feasibility study has been completed, according to which, total length of the track, from Quetta to Taftan, is 700 km, for which $500 million is required to make it capable for a train to ply at the speed of 145 km per hour.

The feasibility study will be submitted to the Planning Commission, they added. Iran and Turkey have a 'standard' gauge, but Pakistan has broad gauge, like India. The three member countries have taken a formal decision to launch container train from Islamabad on August 14, on trial basis, under the Transit Trade Treaty of 1959.

"However, in the first phase, these three countries will trade under the existing Transit Trade Treaty 1959 by December 2009, which would be revised from the next calendar year for 'ECO container train', and a subcommittee will be formed to propose amendments in the accord", sources added.

They said that a meeting would be held in July in Iran for financing arrangements in which Pakistan, Turkey, Asian Development Bank (ADB), Islamic Development Bank (IDB) and Bank of the Economic Co-operation Organisation will participate. Sources said that the launch of the Special Container Train service would give new dimension to trade between Pakistan, Iran and Turkey.

"The inter-state goods traffic has sufficient potential to make the venture a success, while extending rail service between the three countries would not only connect Islamabad, Tehran and Istanbul but would also strengthen inter-state trade development process," they added.

Sources expressed hope that the ECO, Islamic Development Bank and the governments of Iran and Turkey would assist in the development of Quetta-Taftan railway track, which would make the trip affordable, and reduce the transit time between the three countries.

 

[Neo]

PIA to start international flights from Bahawalpur​

BAHAWALPUR (July 01 2009): Pakistan International Airline (PIA) will start its international flights from Bahawalpur airport from Wednesday (tomorrow). According to District Manager, PIA, Bahawalpur Abdul Sattar Khan, first international flight will take off on Wednesday for Dubai from Bahawalpur airport.

He told that due to extension work at Multan airport, all international flights have been suspended and now, these flights will be operated from Bahawalpur airport.

 

[Neo]

Ongoing projects: NHA to spend Rs 8,113 million during 2009-10​

ISLAMABAD (July 01 2009): National Highway Authority (NHA) has estimated spending of Rs 8,113 million during 2009-10 on the ongoing projects in the four provinces and Azad Jammu and Kashmir. It was revealed in a meeting, which was presided over by Federal Minister for Communications Dr Arbab Alamgir Khan.

NHA Chairman Chaudhry Altaf Ahmad and General Manager (Operations) Muhammad Sabir gave a detailed briefing to the Federal Minister, and told him that Rs 921 million would be spent on Punjab north projects; Rs 1,169 million on Punjab south projects; Rs 3,118 million on Sindh; and Rs 1,571 million on Balochistan.

Similarly, Rs 749 million will be spent on NWFP and Rs 585 million will be spent on Azad Jammu and Kashmir. Dr Arbab Alamgir Khan directed the NHA officials to complete the ongoing construction and maintenance projects as soon as possible. He instructed for the early completion of development projects in Balochistan in particular.

Addressing the meeting, the minister said that communications was the backbone of the country's economy, and wanted further up-gradation of linking it to our neighbouring countries to facilitate our trade, industry and tourism. The meeting was told that a total of 12,000-kilometre network of roads fell under the jurisdiction of National Highway Authority.

The officials said that the highway from Gwadar to Jewani was near completion and it would formally be inaugurated next month. They also said that our highways were of international standards and the Frontier Works Organisation (FWD) machines had been installed to check the standard of these highways, which would determine the standard of highways within minutes.

At the moment the Highway M-2 from Lahore to Islamabad is of the highest standard. State Minister for Communications Chaudhry Imtiaz Safdar Warraich, Communications Secretary Sharif Ahmad Khan, NHA Member, Operations, Pir Muhammad Akbar Rashdi, and Finance Member Zafar Iqbal Gondal and General Managers of all the regions participated in the meeting.

 

[Neo]

Hyderabad to use solar powered streetlights​

Saturday, July 04, 2009

Last week saw budgets being announced at the local level as District Hyderabad budget as well as taluka municipal administrations announced their respective budgets and these budgets have been approved without much debate and changes.

A budget of over Rs5 billion was announced for Hyderabad district with the major chunk of the budgetary allocations going towards improvement and initiating of health and education sector schemes.

District Nazim Hyderabad Kanwar Naveed Jameel in his budget speech also announced that Rs 5million have been allocated for solar energy system.

The system as mentioned in the budget aims at starting a pilot project of shifting streetlights to solar energy.

Though the amount is too little for the alternate energy system but as the Nazim himself says that this is an exemplary step announced by any district government. Such initiatives need appreciation and support from the relevant quarters working on alternate energy. The climate change and global warming has become a major issues on global level and seeks attention at local level too.

In his budget speech, the Nazim also highlighted the importance of the expo centre for the promotion of indigenous industries and agro based products of Hyderabad. An amount of Rs21 million has been allocated for the expo centre.

Besides positive developments, Nazim also demanded the provincial and federal government for releasing the held funds to continue the development pace at Hyderabad.

The president of Hyderabad Chamber of Commerce and Industry,(HCCI)Shafiq Ahmed Qureshi has lauded the District Nazim for presenting a peoples friendly budget and also appreciated the district government for keeping the budget tax free.

He said that District Nazim Kanwar Naveed Jameel also consulted with the HCCI for the budget making process and therefore Rs21 million have been earmarked for expo centre.

A seminar on ‘Budget 2009-10 and its impacts on economy of Pakistan was organised at HCCI in collaboration with the Institute of Cost and Management Accounts of Pakistan(ICMAP), Hyderabad Tax Bar Association and Junior Chamber International.

In his address at the seminar, the HCCI president said that the expectations of the businessmen and industrialists were not fulfilled in the federal budget.

He said that federal and provincial government budgets have been announced but no relief has been provided for the business community and questioned that when power tariff and gas prices will be increased who will invest.

In his reaction to the rise in petroleum prices, HCCI president in a statement termed it as a mini budget and such a decision would raise the prices of essential commodities and cost of living would be increased.

He said that the announcement of increasing the POL prices would affect the industries badly and economic activities would come to an end and transportation cost would be increased which would increase the burden of the common men.

 

[Neo]

Power stations for industrial estates​

EDITORIAL (July 04 2009): The Sindh government's plan to set up power stations of 200, 100 and 50 megawatts in the industrial estates, in the province, to cater to their power requirements, is obviously a last-ditch attempt to contain the mounting production losses arising from prolonged power outages.

Sindh Minister for Commerce and Industry Rauf Siddiqui has given approval to the plan, and directed that a power-based estate strategy for industrialisation in the province should be prepared, and offers be invited from private sector parties to energise each unit in the Sindh industrial estates.

According to sources, quoted in a Recorder Report, the minister has issued instructions for reserving adequate space for setting up the power plants, in the PC-1 of new development schemes for industrial zones. Prolonged loadshedding in Karachi's five industrial estates has, meanwhile, caused huge production loss, and according to one estimate, production activity has fallen by about 50 percent, which should ring alarm bells.

According to one estimate, the KESC is grappling with a shortfall of around 700 megawatts against a total demand of 2,200 megawatts. The KESC, which operates as a separate, vertically integrated utility, is now predominantly in private hands, after the sale of 73 percent of the shares to a consortium of private investors in November 2005.

The utility has four thermal plants, which produce 1,760 megawatts of power, and a distribution network that contributes around 40 percent to the power losses sustained by the utility. As the operational constraints of KESC are adversely impacting the country's industrial heartland of Karachi, production losses in the mega city are making a highly deleterious impact on the country's industrial productivity.

There is a perception among some analysts that, with proper maintenance and operational efficiency, and also assuming fuel availability, the thermal plants should be able to produce an additional 50 percent or more energy from the existing units, as compared to what they generated in FY2005.

While the decision to set up power plants in the Sindh industrial estates, which will obviously be oil or gas-fired plants, is a move designed to ease the impact of the current power crunch on the province's industrial productivity, the plan also has a negative side to it. The plan is likely to make things worse, as the Gencos and Discos would then feel under relatively less pressure to improve the system itself.

KESC's poor performance, in violation of its contractual obligation to upgrade the system and invest $500 million in the utility by 2008, has already, not only hit productivity in Karachi's five industrial estates, it has also generated social unrest and anger in the mega city, as elsewhere in the country.

Secondly, the industrial establishments, after installation of the plants, may start charging higher rates for their products, on the plea that they have used the generating units in the manufacturing process. Thirdly, the overhead charges incurred on their limited ("retail") operations, as compared to the KESC's ("wholesale") operations, may push up the overall cost of production, thereby further eroding competitiveness of our exports in the international market.

These are only some of the negative points in the Sindh government's decision. However, on the positive side is the surety of an uninterrupted production process, fewer industrial layoffs, and increased production volumes, though all this will be achieved at the cost of perpetuating the discredited policy of institutional fragmentation of the energy sector.

We believe the Sindh government's decision takes the "fragmentary" approach a notch higher. Instead of tackling the power generation and supply problem in a holistic fashion in the province, by forcing the KESC and other power sector entities to improve their efficiency, the provincial government has chosen the path of least resistance. Some would even view it as a "win-win" situation for both the provincial government and the power producers.

A perception has somehow developed, over the decades, that we at first create a problem, and after it has assumed proportions of an emergency, opt for a solution that best suits our interests. Decades of "go-slow" in the implementation of water and power projects, for which we received huge funding from international financial institutions, has at long last made us drop like a ripe plum into eager hands.

The power sector crisis seems to be gradually assuming the contours of a terminal illness. There is a need for all stakeholders to evolve a consensual solution to the problem, and then act in unison. A World Bank report, in 2008, had warned that "without adequate irrigation resources, power, and transport infrastructure, the very sustainability of Pakistan as an independent nation may be at stake, as shortages could lead to increased social discontent and disharmony amongst the federation and the provinces."

The government must develop consensus among the provinces on water and hydropower issues, announce a policy decision and then ensure its implementation in letter and spirit. Meanwhile, let the federal government announce a definite timeframe for overcoming the worsening power crisis in the country.

The Sindh government's decision to allow the establishment of power in the industrial estates should at best be treated as a short-term solution. There is a need for the federal government to find, and implement, a durable and economical solution to the country's water and power sector problems.

 

[Omar1984]

Windmill projects of 9300 MW capacity finalized

Updated at: 1845 PST, Saturday, July 04, 2009

ISLAMABAD: Government has given a go ahead for windmill power generation plants having a total capacity of 9300 MW.

A meeting of NA Standing Committee for Planning held under the chairmanship of MNA Mir Hamdan Bugti was informed that the above windmill power projects have been finalized. For this work on Bhasha Dam will begin in this year.

Bugti said the development works undertaken in Dera Bugti are not in accordance with the needs of the people.


Windmill projects of 9300 MW capacity finalized

 

[ajpirzada]

Ongoing projects: NHA to spend Rs 8,113 million during 2009-10​

ISLAMABAD (July 01 2009): National Highway Authority (NHA) has estimated spending of Rs 8,113 million during 2009-10 on the ongoing projects in the four provinces and Azad Jammu and Kashmir. It was revealed in a meeting, which was presided over by Federal Minister for Communications Dr Arbab Alamgir Khan.

NHA Chairman Chaudhry Altaf Ahmad and General Manager (Operations) Muhammad Sabir gave a detailed briefing to the Federal Minister, and told him that Rs 921 million would be spent on Punjab north projects; Rs 1,169 million on Punjab south projects; Rs 3,118 million on Sindh; and Rs 1,571 million on Balochistan.

Similarly, Rs 749 million will be spent on NWFP and Rs 585 million will be spent on Azad Jammu and Kashmir. Dr Arbab Alamgir Khan directed the NHA officials to complete the ongoing construction and maintenance projects as soon as possible. He instructed for the early completion of development projects in Balochistan in particular.

Addressing the meeting, the minister said that communications was the backbone of the country's economy, and wanted further up-gradation of linking it to our neighbouring countries to facilitate our trade, industry and tourism. The meeting was told that a total of 12,000-kilometre network of roads fell under the jurisdiction of National Highway Authority.

The officials said that the highway from Gwadar to Jewani was near completion and it would formally be inaugurated next month. They also said that our highways were of international standards and the Frontier Works Organisation (FWD) machines had been installed to check the standard of these highways, which would determine the standard of highways within minutes.

At the moment the Highway M-2 from Lahore to Islamabad is of the highest standard. State Minister for Communications Chaudhry Imtiaz Safdar Warraich, Communications Secretary Sharif Ahmad Khan, NHA Member, Operations, Pir Muhammad Akbar Rashdi, and Finance Member Zafar Iqbal Gondal and General Managers of all the regions participated in the meeting.

i read the same news somewhere else and it said 921bn for northern punjab. that really took my by surprise. 921mn looks more sensible.

 

[Neo]

PQA expects $1.22bn foreign investment ​

Sunday, July 05, 2009

KARACHI: The Port Qasim Authority (PQA) expects that its development projects will attract foreign investment of $1.22 billion over five years.

In a press statement on Saturday, the PQA said development projects were being undertaken in the private sector on Build Operate Transfer (BOT) basis without costing any penny to the Authority.

Highlighting its projects, the PQA said a liquid cargo terminal, with handling capacity of four million tonnes per annum, had been developed through a joint venture between Felda, Westbury and Qasim (FWQ) at a cost of $15 million.

Soft operations commenced on March 30 while formal commissioning of the terminal is expected shortly. A second container terminal is being developed by DP World at a cost of $250 million with handling capacity of 1.175 million TEUs (twenty-feet equivalent units) per annum.

The terminal is likely to be completed by the end of 2011. Twenty per cent work has so far been completed.

To meet energy demand, an LNG floating terminal is being developed by Gas Port at a cost of $160 million with handling capacity of three million tonnes per annum. It is expected to be completed by the end of 2010.

A specialised grain and fertiliser terminal is being developed by Fauji Akbar Portia at a cost of $100 million with handling capacity of four million tonnes per annum. The terminal is expected to be completed by the end of 2011. Thirty per cent work has so far been completed.

A coal and clinker/cement terminal will be developed at a cost of $175 million with handling capacity of eight million tonnes per annum. The terminal is expected to be completed by the end of 2011 and an implementation agreement is being negotiated.

An LNG terminal is planned to be developed by Granada Group of Companies at a cost of $274 million with handling capacity of 3.5 million tonnes per annum. The terminal is expected to be completed by 2012. Technical and financial proposals are currently being evaluated.

To handle increased volume of petroleum imports, a second oil terminal is planned to be developed at a cost of $51.4 million with handling capacity of nine million tonnes per annum. The terminal is expected to be completed by 2012. Technical and financial proposals are currently being evaluated.

To handle increased volume of goods for Pakistan Steel Mills and to accommodate imports of Al-Tuwairqi Steel Mills, a second iron ore & coal berth is planned to be developed at a cost of $150 million with handling capacity of eight million tonnes per annum.

Outsourcing of the terminal is under active consideration. The development of the terminal will be linked with Pastel Expansion programme. PQA plans deepening of navigation channel for all weather 14 meter draught vessels at a cost of $150 million on Design, construct and finance basis.

The project has been approved by the CDWP on September 18, 2008. Approval of ECNEC is awaited.

Besides capacity building projects, PQA is equally concerned for provision of infrastructure facilities in its industrial zones to gear up development of port based industrial and commercial projects.

To facilitate the traffic flow PQA plans construction of a flyover and dual carriage way at a cost of more than Rs2 billion. PQA has also awarded contract for provision of infrastructure facilities & development works in Eastern Industrial Zone through frontier works organization and national logistics cell at a cost of Rs8.8 billion.