Pakistan's Energy & Water - News and Updates

[Devil Soul]

US to help privatise power companies
ANWAR IQBAL
WASHINGTON: During a joint meeting on energy cooperation, the United States committed to assist Pakistan in privatising at least two power distribution companies by 2015, the US State Department said on Wednesday.

The Pakistani delegation to the 5th US-Pakistan Energy Working Group emphasised the need for enhanced US assistance in the construction of large hydroelectric projects, particularly Diamer-Bhasha dam.

A separate statement issued by the Pakistan Embassy in Washington said the Bhasha Dam was crucial for the country’s future, “given its water storage and power generation related significance”.

Pakistan describes the proposed project as “a matter of life and death” and says that it will build the dam even if gets no foreign assistance.

The working group held a day-long meeting in Washington on Tuesday, focusing on “the critical importance of a stable supply of energy in accelerating Pakistan’s economic growth,” the State Department said.

This is the first working group meeting since the resumption of the US-Pakistan Strategic Dialogue. Energy issues were also a core topic of discussion during Prime Minister Nawaz Sharif’s official visit to Washington last month.

Both sides agreed that Turkmenistan-Afghanistan-Pakistan-India and CASA-1000 projects would help regional integration and greatly help in meeting the growing energy demands in the region.

Neither the Pakistani nor the US statement mentioned the Iran gas pipeline project, although senior members of the Pakistani delegation told journalists before the meeting that they would raise the controversial plan.

The US claims that the project breaches its laws that prevent large foreign investments in Iran. Pakistan insists that since Iran is building the proposed pipeline it does not breach the law.

At the meeting, the Pakistani delegation also highlighted the need to expand power generation, promote energy efficiency, and to better use Pakistan’s domestic natural gas, hydroelectric and renewable resources.

Minister of Petroleum and Natural Resources Shahid Khaqan Abbasi sought US support to attract private-sector investment to catalyse domestic gas exploration and production in Pakistan, the State Department said.

Minister for Water and Power Khawaja Asif emphasised the need for further US support for Pakistan’s power policy and privatisation plans.

The State Department said that the Overseas Private Investment Corporation, the US government’s development finance institution, was negotiating a $95 million loan to a prospective 50MW wind power plant in the Gharo-Keti Bandar corridor.

The Pakistani delegation also met US Secretary of Energy Ernest Moniz, with whom they discussed potential collaboration in grid resiliency and the energy-water nexus.According to the Pakistani statement, talks with Secretary Moniz also covered ways and means to further explore the potential offered by Pakistan’s vast energy resources.

The working group also reviewed the existing and future cooperation in oil and gas as well as power sectors and discussed the renewable energy potential in Pakistan, the statement added.

 

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[niaz]

Pakistan's energy sector is in a real bad shape. Firstly, how can anyone in his right mind support Karachi Water Board when despite the Court order, they did not pay KESC.

Secondly PSO is also has a serious financial difficulties primarily because they are not being paid by the power companies. Here is an article from the international press. I can’t give the full reference because of copy right complications.

You simply cannot use something and then not pay for it? Why is this simple principle so difficult to understand?

Quote


29-Nov-2013 11:36


Karachi (Platts)--29Nov2013/336 am EST/836 GMT

Pakistan State Oil Ltd., the country's biggest oil supplier, is facing a

financial crisis with utilities, airlines and state-run railways owing it

Pakistan Rupees 138 billion ($1.27 billion), said an official Friday.

The retailer has been caught in a spiral of circular debt since 2008,

where in state-owned power utilities have defaulted on payments to oil

marketers, who, in turn, have been unable to pay refiners. As a result, the

country's refiners have struggled to pay for crude imports, with a consequent

decline in oil refining operations and upstream investments.

Pakistan's Economic Coordination Committee, the country's highest

decision-making body, in June this year approved the newly-elected

government's plan to wipe out the energy sector's multi-billion-dollar debt,

following which around Rupees 542 billion had been cleared by August.

But over the last two months, the money owed by power plants, the

national airline and state-run railways has again ballooned to Rupees 138

billion.

For its oil purchases, PSO has to pay around Rupees 19 billion to local

refineries and Rupees 99 billion to international oil suppliers including

Kuwait Petroleum Co., the PSO official said.

If PSO does not receive payment immediately, it will have to cut down

fuel supply to utilities and to Pakistan International Airline, the PSO

official said.

PIA has been asked to immediately release Rupees 7 billion, otherwise PSO

will reduce the fuel supply to the airline in phases, the official said.

In the past, reduced fuel supply to utilities had resulted in to around

10-14 hours/day of power blackouts in the country.

Unquote

 

[salman77]

Pakistan to complete 32,701 MW power production projects in next 7 years

ISLAMABAD, Dec 1 (KUNA) -- Over 29 hydro power projects, having a total capacity of producing 32,701.2 Mega Watt (MW) electricity would start production in the next two to seven years in Pakistan, said officials.
According to Water and Power Development Authority (WAPDA) officials, 320 MW Dasu Hydro power Project and 7,100 MW Bunji hydropower project were under process of approval.
A 58 percent overall physical progress has been reported in 969 MW Neelum-Jhelum hydropower projects. The Gomal Zam dam situated in Dera Ismael Khan would start producing 17.4 MW power in December 2013.
According to an official press release, the land acquisition and preliminary works are in progress in 4500 MW capacities Diamer Basha Dam to be constructed near Chilas.
A 4.2 MW Nal Gaj Dam situated in Dadu Sindh MW power would be completed in June 2015 said the release. Another project of 22 MW capacities Jabban Hydropower project has started 5.5 MW power.
The officials said that the project requires four years construction period after completion of formalities. The construction activities are in progress at 122 MW Keyal Khwar Hydro power project situated in Dasu district.
The 25.5 MW Tank Zam Dam would be completed after four years of detailed engineering design said an official release.
Pakistan has been facing an acute power shortage of over 5500 MW that is damaging its industrial sector adversely.
The government is focusing on overcoming the power shortage through different local and international projects and WAPDA officials expressed their confidence to complete the projects within seven year time period.

KUNA : Pakistan to complete 32,701 MW power production projects in next 7 years - Economics - 01/12/2013

 

[Chak Bamu]

Pakistan to complete 32,701 MW power production projects in next 7 years

ISLAMABAD, Dec 1 (KUNA) -- Over 29 hydro power projects, having a total capacity of producing 32,701.2 Mega Watt (MW) electricity would start production in the next two to seven years in Pakistan, said officials.
According to Water and Power Development Authority (WAPDA) officials, 320 MW Dasu Hydro power Project and 7,100 MW Bunji hydropower project were under process of approval.
A 58 percent overall physical progress has been reported in 969 MW Neelum-Jhelum hydropower projects. The Gomal Zam dam situated in Dera Ismael Khan would start producing 17.4 MW power in December 2013.
According to an official press release, the land acquisition and preliminary works are in progress in 4500 MW capacities Diamer Basha Dam to be constructed near Chilas.
A 4.2 MW Nal Gaj Dam situated in Dadu Sindh MW power would be completed in June 2015 said the release. Another project of 22 MW capacities Jabban Hydropower project has started 5.5 MW power.
The officials said that the project requires four years construction period after completion of formalities. The construction activities are in progress at 122 MW Keyal Khwar Hydro power project situated in Dasu district.
The 25.5 MW Tank Zam Dam would be completed after four years of detailed engineering design said an official release.
Pakistan has been facing an acute power shortage of over 5500 MW that is damaging its industrial sector adversely.
The government is focusing on overcoming the power shortage through different local and international projects and WAPDA officials expressed their confidence to complete the projects within seven year time period.

KUNA : Pakistan to complete 32,701 MW power production projects in next 7 years - Economics - 01/12/2013

This is government sponsored spin. I do not quite believe this. All I can see is addition of much less than 2000 MW hydropower projects in next three years. Add 600 MW nuclear energy, and we have a little more than 2000 MW in cheap electricity capacity. Extensions in capacity at Tarbela are good only for flood season, and there is hardly anything else in the works. The capacities mentioned are peak capacities and I doubt that even half the capacity would be available during dry season. So all these figures need to be taken with more than a few grains of salt.

Bunji and Diamer Bhasha are only in papers and we will see them when they get constructed. I doubt if we would see them within seven years.

 

[Chak Bamu]

Tarbela 5th extension project: All set to award contract in violations of rules – The Express Tribune
Tarbela 5th extension project: All set to award the contract in violation of the rules.

LAHORE:
The Water and Power Development Authority (Wapda) is all set to award contract for the fifth extension of Tarbela Dam’s hydropower project against Public Procurement Regulatory Authority (PPRA) rules and without approval of PC 1, The Express Tribune has learnt.

The project for tunnel-5 was not approved by the Central Development Working Party (CDWP) and the Executive Committee of the National Economic Council (ECNEC), a senior functionary of Wapda confirmed.

According to a briefing paper for Tarbela 5th Extension Project available with The Express Tribune the initial estimate of Rs55.6 billion is based on the evaluations conducted for the Tarbela 4th extension project.

In this regard official correspondence has been started bypassing the prescribed rules and regulations.

Wapda Chairman Syed Raghib Abbas Shah through a letter has contacted an Austrian company Andritz Hydro GmbH’s representative Thilo Pohlmann, areas sales manager of Large Hydro.

The letter, available with The Express Tribune, states: “reference to your meeting with Prime Minister of Pakistan and follow up meeting with secretary water and power on the subject issue. You are well aware that presently Wapda with the financing support of World Bank is constructing civil works and allied electrical and mechanical (E&M) works of Tunnel 4 of Tarbela for the installed capacity of 1.410 Mega Watt (MW) project. Since it is planned by Wapda that similar potential could be explored from Tunnel 5 of Tarbela Dam, therefore, the consultants MM Pakistan are asked in addition to their consultancy assignments for Tarbela 4th Extension to study the possibilities of installation the similar infrastructure on Tunnel 5.

“Since MM Pakistan Consultants may take some time and you intend to save time, you are, therefore, advised to please have a study at your own at the earliest to formalise this component of the project to be constructed at the earliest accordingly.”

According to prescribed rules and regulations as well as various rulings of the superior courts contract for a public sector project could not be awarded without open bidding process.

WAPDA’s Version

Project Director Tarbela extension project Muhammad Yousaf Khattak, while talking to The Express Tribune admitted that feasibility study report of the project has not been prepared and approved by the authorities concerned as yet. On a question he said that the PC-1 of this project has also not been approved. He added that neither CDWP nor ECNEC approved this project.

When The Express Tribune contacted the director public relations of Wapda for official version on the story, he did not offer any comment. A visit to the Wapda House proved futile as was the questionnaire sent to the PR chief.

“He did not offer any comment,” director public relations said on behalf of Wapda chairman in reply to the questions sent by The Express Tribune.

Published in The Express Tribune, December 2nd, 2013.
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Really interesting development. I am not convinced that this is corruption. It is probably being done to expedite the process of electricity generation by short-circuiting red tape. But still rules and rules, the press is press, and the courts are courts. I am not sure PML-N can easily get away with this. Your views @niaz sb.?

 

[salman77]

Swiss Water Plans $200 Million of Clean-Power Plants in Pakistan

Swiss Water Tech Research & Development SA, a green-technology developer, said it’s in line to win about $200 million of contracts in Pakistan to supply clean-power plants that run on waste.

The Neuchatel, Switzerland-based company received a letter of intent from the Punjab state government and will provide the technology for a 100-megawatt project, Chief Operational Operator Ralph Hofmeier said in an interview. Swiss Water is also in talks with private companies for a similar amount of capacity that includes agreements last week with three firms for 17 megawatts.

The plants could run on liquid or solid waste to generate power more cheaply than coal, solar or wind projects, Hofmeier said in Karachi without elaborating. The company is seeking funds from Habib Bank Ltd. that would be backed by a sovereign guarantee from the Pakistan government, he said on Nov. 26.

 

[salman77]

Russian firm to assist conversion of thermal power plant to coal

Thursday, December 05, 2013 - Karachi—Russian Company JSC Technopromexport will convert two Thermal power plants of 1400 megawatt into coal fired system at Ka,sjpr4p and Guddu, it is learnt. Accprdomg to informed sources, a memorandum of understanding (MOU) is on its way next week with Russian company in this regard.

Under this agreement, the Jamshoro Power Plant of 800 MW and Guddu Power Plant of 600 MW currently run by costly fuel oil would be converted into coal-fired fired system. The Russian company JSC Technopromexport is also willing to set up a power plant of 600 MW at Gaddani Power Park where 10 units of 660mw initiated by Prime Minister Nawaz Shariff which has attracted the private investment both from domestic and external sources.

Reducing the cost of power generation is the primary focus of the government to bring down the power tariffs by using alternative energy resources like coal, wind and even nuclear power as a cost cutting effort to make the price of electricity to affordable level of the masses. It may be noted that at the moment a large portion of the total power produced in Pakistan comes through oil or gas fired system which is highly expensive and weighing heavily on economy as the import bill of oil may exceed to $16 billing this fiscal year which by no mean sustainable in the face of fast depleting foreign exchange reserves of the country.

The arrival of 6600mw from Gaddani Power Park coal fired project, 220mw of nuclear power from KNUPP-II with the support of China and conversion of existing thermal power plants into coal fired system will give a spark to the economy when put on line in the next couple of years.

Russian firm to assist conversion of thermal power plant to coal

 

[salman77]

PM performs ground breaking of 14.4 MW Naltar-V Power project
GILGIT, Dec 6 (APP): Prime Minister Muhammad Nawaz Sharif Friday performed ground breaking for the execution of a 14.4 Mega Watt power project in Naltar area of Gilgit Baltistan. The ground breaking ceremony was attended by Governor Pir Karam Ali Shah, Chief Minister GB Syed Mehdi Shah and other government officials besides the Chinese team involved in the construction of the project. The power project named as Naltar-V Hydropower Project would be executed by Chinese firm as feasibility study has already been completed. The run-of-the river project would cost Rs 3.84 billion and would be completed by 2016. Once completed, the project would help overcome the power shortage confronting the area.

 

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[salman77]

Country possesses hydropower generation potential of 60,000MW: WAPDA

Pakistan possesses an identified hydropower potential of 60,000 MW, said WAPDA Member (Water) Hasnain Afzal, adding that every effort was being made to harness this potential. He was briefing optimum development of water and hydropower resources in the country to a team of PAF Air War College, Karachi during their visit to WAPDA House, here on Tuesday.
The team led by Air Commodore Shahid Latif Bajwa, comprised officers from Pakistan Air Force, Pakistan Navy and Pakistan Army including 16 allied officers from different friendly countries. Member (Power) Rizwan Ahmad, NTDC Managing Director Zia-ur-Rehman and senior officers of WAPDA were also present on the occasion.
Responding to questions of participants, the Member (Water) further said that 4500-MW Diamer Basha Dam Project, and 4320-MW Dasu Hydropower Project and 7100-MW Bunji Hydropower Project were ready for construction. He apprised the team that the contract of 1410-MW Tarbela Fourth Extension Hydropower Project was already awarded in addition to accelerating pace of work on the under-construction projects including Neelum Jhelum and Golen Gol. Hydel energy being the cheapest source will provide substantial relief in tariff to the consumer which is currently high due to lesser share of hydel electricity in the overall generation, he added.
The team was also briefed about power sector reforms, existing power generation capabilities, generation mix, consumption patterns, line losses, and factors behind increase in electricity tariff. The team was also apprised of the government's efforts to overcome the electricity crisis.

Country possesses hydropower generation potential of 60,000MW: WAPDA | Business Recorder

 

[ejaz007]

Fed govt to help Sindh build 600 MW plant

ISLAMABAD: The government of Sindh has been assured on Tuesday that Federal government would extend all possible assistance in the construction of a 600 MW Thermal Power Plant at the mouth of a coal mine in Thar.

Syed Murad Ali Shah, advisor to the Chief Minister Sindh on Finance called on Finance Minister Senator Ishaq Dar in his office on Tuesday. The Finance Minister said that the government is focusing to increase generation of power and make a quantum addition in generation capacity of the country. In this connection the huge Thar Coal reserves will help us in relying on the production of electricity through indigenous resources and thus save valuable foreign exchange.

The Finance Minister said the federal government would extend all possible assistance to the government of Sindh in the construction of a 600 MW Thermal Power Plant at the mouth of a coal mine in Thar. Syed Murad Ali Shah assured the Finance Minister that the government of Sindh would extend all possible cooperation to the federal government to improve the condition of the economy and plight of the common man. staff report

http://dailytimes.com.pk/default.asp?page=2013\12\11\story_11-12-2013_pg5_3

 

[salman77]

China ready to finance Thar coal project: SECMC chief

ISLAMABAD:
As International Financial Institutions (IFIs) refuse to extend financing to develop Thar coal reserves, China has offered to provide $900 million for mining and setting up power plants, seeking a guarantee from the federal government in order to go ahead with the offer.
This was stated by Shamsuddin A Shaikh, Sindh Engro Coal Mining Company (SECMC) Chief Executive Officer (CEO).
He said that the SECMC required $1.2 billion for the Thar coal mining and power projects, which no IFI was ready to extend due to environmental issues and Pakistan’s credit history.
“China is the only country which is ready to extend financing but it wants a guarantee from the federal government to list Thar coal among the top 3 to 4 priority projects,” said Shaikh, adding that Chinese banks were ready to extend $900 million, out of which local banks would provide $300 million.
He demanded that the federal government list the Thar coal project as a priority to secure financing from China. He further said that the government of Pakistan should include the Thar coal project in the Pak-China Economic Corridor project.
He said that it is important that a conversion policy be made with incentives for use of local coal to encourage the use of indigenous resources and save precious foreign exchange.
“All new conversion projects based on imported coal should be subject to blending with Thar coal at 20% at least to scale up mining at Thar,” he said.
He also asked that the power policy be amended to include Thar-based power projects enabling the Private Power Infrastructure Board (PPIB) to issue the requisite Letter of Intent (LOI) for Thar based plant.
Shaikh said that Pakistan’s power sector suffers from shortages as well as an expensive energy mix. Pakistan’s effective power generation stands at 16,000 MW, which is currently short by approximately 5,000 MW, and will worsen as power requirements increase to 26,000 MW by 2020.
“Pakistan’s energy mix is neither sustainable nor affordable as approximately 40% of power generation is dependent on imported fuel. It is, therefore, imperative to curb our dependence on expensive imported fuel and develop indigenous resources that can help provide energy security,” said Shaikh. “Import of coal is very risky as its prices cannot be predicted, coupled with our currency devaluation which would again take us back to the current unsustainable position.”
Contrary to general perception, Shaikh said, the quality of Thar lignite compares favourably with other lignite being used around the world for power production.
“Among the four established quality measures of coal which are heating value, sulphur, Ash and moisture content, Thar coal is superior in three quality aspects as compared to lignite currently being used in Germany, India and Bulgaria for power generation,” he added.
He said that the SECMC was a joint venture with the Sindh government, which owns 51% of the share while SECMC owns 49%.
“Now, SECMC wants to keep 26% of the shares and Pakistan State Oil (PSO) will get 23%,” Shaikh said.

China ready to finance Thar coal project: SECMC chief – The Express Tribune

 

[salman77]

Khalifa orders 12 projects to provide clean water in Pakistan

Pakistan: In implementation of the directives of President His Highness Shaikh Khalifa Bin Zayed Al Nahyan, the UAE Project to Assist Pakistan has announced the launch of 12 new projects to provide clean drinking water in Pakistan at a cost of $1.2 million (Dh4.4 million).
The President’s initiative aims to support the people of Pakistan, contribute to developing its provinces and cities, and provide them with modern facilities in addition to securing basic needs such as roads, bridges, education, health and water for the community.
The management of the UAE Project pointed out that the new projects represent the commencement of the second phase of the projects’ working plan, in light of the directives and generous initiatives of Shaikh Khalifa, General Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces and the relentless efforts of Shaikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs and Chairman of the Abu Dhabi Fund for Development, to provide help for Pakistan so as to develop its infrastructure, including vital projects.
The management said that it had approved and started work on the new projects, in addition to establishing water treatment and purification plants and extending delivery networks to provide sweet water to 12 villages in remote areas in Northern Waziristan.
The statement also added that the administration is continuing to provide aid to all Pakistan regions and cover the largest segments of society, especially in the field of infrastructure, where the first phase witnessed the implementation of 64 projects that serve 64 villages in the provinces of Khyber Pakhtunkhwa, South of Waziristan and Bajaur region, at a total cost of $5,773,135.
The beneficiaries hailed Shaikh Khalifa’s initiatives to improve their standards of living and alleviate the suffering of the Pakistani people.