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Punjab’s budget: Province to pour Rs31b into energy projects

AdeelFaheem

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LAHORE:
The Punjab government in its budget for fiscal year 2014-15 has set aside Rs31 billion for a raft of projects in the energy sector – a critical area that has got top priority in the face of widespread shortages and their crippling impact on the economy.


The allocation is about 52% higher than the amount earmarked by the province in the outgoing fiscal year.

According to budget documents unveiled on Friday, of the total allocation for the energy budget, new schemes numbering 12 will receive Rs17.61 billion in the new fiscal year beginning July while five ongoing projects will get Rs4.39 billion.

For existing schemes, the provincial government will cough up Rs1.34 billion and the remaining Rs3.05 billion will come in shape of foreign aid. No external assistance will be in place for the new energy schemes.


Apart from the 17 schemes, an amount of Rs9 billion will be injected into 1,000-megawatt Quaid-i-Azam solar park based in Bahawalpur. Total cost of the project is estimated at Rs17 billion.


Since taking the reins of the province for a second five-year term in a row, the Punjab government of Shahbaz Sharif is paying special attention to developing the energy sector and is trying to tap all available resources for electricity production.

The government is wooing private sector to pump money into energy schemes and for this reason two public-sector companies – Punjab Power Development Company and Punjab Quaid-e-Azam Solar Company – have been set up to step up work on the projects.

Punjab’s private sector has already labelled electricity shortage as the biggest hurdle in the way of doing business, especially for the textile industry.

It is believed that the province, which consumes 68% of total power supply, can increase its Gross Regional Product by 2% and raise exports by $1 billion, if it becomes self-sufficient in energy generation.

Under the renewable energy development and investment programme, the province will spend Rs3.8 billion on producing 20MW from four hydroelectric power stations. Total cost of these dams is projected at Rs13.3 billion.

An interesting feature of the energy budget is the initiative to disconnect 36 villages of the province – one each from every district – from the electricity grid. They will be supplied electricity by utilising renewable and clean energy sources like biomass, biogas, solar, wind and small hydroelectric power projects. For this, the province has earmarked Rs50 million for conducting feasibility studies.

In an effort to ensure uninterrupted electricity supply to industrial parks, the provincial government will establish four coal-fired power plants – each of 55MW. Two plants will be set up at the Faisalabad industrial estate and another two at the Sundar industrial estate, Lahore costing an estimated Rs1 billion each.

In the new fiscal year, the government has allocated Rs450 million for each of the industrial parks.

Biomass-based power plants will also be set up, with an allocation of Rs2 billion, near major wheat and rice producing areas. Another Rs500 million has been set aside for establishing bagasse-cum-coal based power plants near sugarcane producing districts.

The government has also planned to set up six coal-fired power plants – each having capacity of 1,320MW – with the assistance of private investors. For this, land and logistics infrastructure have been provided by the provincial government.

Published in The Express Tribune, June 14th, 2014.

Source : Punjab’s budget: Province to pour Rs31b into energy projects – The Express Tribune
@hasnain0099 @Tameem
Guys what are your views on underlined paragraph ?

@Leader @Jazzbot
I was searching for KPK power projects (for Healthy competition coz KPK or Punjab Its all about Pakistan), may be you can help...
 
Good that Punjab Govt is finally doing something on emergency basis about energy. They did practically nothing during past 5 years.

I was searching for KPK power projects (for Healthy competition coz KPK or Punjab Its all about Pakistan), may be you can help...


What are you looking for?
 
yara 31 billion is peanuts, as you see 52 billion is for a metro in pindi.

@Ather may guide, I am little distracted at the moment..
 
I was looking for Power Projects by this KPK govt. Some names and numbers e.t.c.


  • Rs7.52 billion to be spent to build eight hydel power stations in K-P which will generate 659 megawatts
  • Rs3 billion to be spent on other power generation projects
  • Rs200 million to be spent on a project which will use solar power and alternate energy sources to provide electricity to villages that do not have it.
------------------------------------------

10415560_717366854976283_4087423212548736345_n.png


10313345_717366611642974_1741300516586313481_n.png



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Following power project have been completed in 2013 - 14:

2013_1.png



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The Government of Pakistan has signed a loan agreement with the Asian Development Bank (ADB) for the development of Hydropower Potential in Khyber Pakhtunkhwa. Under this agreement, PEDO is constructing two projects having a total installed capacity of 20 MW (17 MW Ranolia HPP Kohistan and 2.6 MW Machai HP Mardan). The 2.6 MW Machai HP Mardan project will be completed by August 2014 whereas 17 MW Ranolia HPP Kohistan will be completed by December 2014. Under the same loan arrangement feasibility studies of three sites were also carried out and based on these studies PC-I have been framed out of which the Jabori HPP (10 MW) Mansehra, Karora HPP (11 MW) Shangla, and Koto HPP (40.8 MW) Dir Lower have been approved. Management Consultants have been hired for all three projects and selection for Contractor on EPC basis has been advertised.


Source:
Page: 40
http://www.financekpp.gov.pk/FD/attachments/article/251/White Paper 2014-15.pdf

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The following targets have been set forth in ADP 2014

1. Construction of 300 MW Balakot HPP District Mansehra (10 % Equity)
2. Construction of 14 MW Ghorband HPP District Shangla(10 % Equity)
3. Construction of 188 MW Naran Dam District Mansehra (10 % Equity)
4. Construction of 10 MW Nandihar HPP District Batagram (10 % Equity)
5. Construction of 51 MW MujigaramShaghore HPP District Chitral (10 % Equity)
6. Construction of 52 MW IstaroBooni HPP District Chitral (10 % Equity)
7. Construction of 79 MW ArkariGol HPP District Chitral (10 % Equity)

Page 42: http://www.financekpp.gov.pk/FD/attachments/article/251/White Paper 2014-15.pdf

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Following projects are in feasibility or early development phase which will be done in 2014:

2014_1.png



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An allocation of Rs.3046.000 Million has been made for total of 36 projects out of which 19 are ongoing with allocation of Rs.2805.399 Million and 17 are new with allocation of Rs.240.601 Million.

The following major targets will be achieved in this sector:

  • Construction of 300 MW Balakot HPP District Mansehra.
  • Construction of 14 MW Ghorband HPP District Shangla.
  • Construction of 84 MW Matiltan Gorkin HPP Swat.
  • Construction of 69 MW Lawi, Chitral.
  • Development of Renewable energy in Khyber Pakhtunkhwa.
  • Construction of 10 MW Nandihar HPP District Batagram.
  • Construction of 51 MW Mujigaram Shaghore HPP District Chitral.
  • Construction of 52 MW Istaro Booni HPP District Chitral.
  • Construction of 79 MW ArkariGol HPP District Chitral.

Page: 89 of http://www.financekpp.gov.pk/FD/attachments/article/251/White Paper 2014-15.pdf
 
yara 31 billion is peanuts, as you see 52 billion is for a metro in pindi.

@Ather may guide, I am little distracted at the moment..
Bhai tum log KPK main iss se zaida lagalo, who is stopping you? But wait, bana to lo gey but who will be willing to invest in a place where the default rate is well above 60%....
 
What about Sindh? Will those PPP duffers have pity on people there, and start any power projects?

I heard rumours of a wind turbine project, but I don't believe such ingenuity from them.
 
LAHORE:
The Punjab government in its budget for fiscal year 2014-15 has set aside Rs31 billion for a raft of projects in the energy sector – a critical area that has got top priority in the face of widespread shortages and their crippling impact on the economy.


The allocation is about 52% higher than the amount earmarked by the province in the outgoing fiscal year.

According to budget documents unveiled on Friday, of the total allocation for the energy budget, new schemes numbering 12 will receive Rs17.61 billion in the new fiscal year beginning July while five ongoing projects will get Rs4.39 billion.

For existing schemes, the provincial government will cough up Rs1.34 billion and the remaining Rs3.05 billion will come in shape of foreign aid. No external assistance will be in place for the new energy schemes.

Apart from the 17 schemes, an amount of Rs9 billion will be injected into 1,000-megawatt Quaid-i-Azam solar park based in Bahawalpur. Total cost of the project is estimated at Rs17 billion.


Since taking the reins of the province for a second five-year term in a row, the Punjab government of Shahbaz Sharif is paying special attention to developing the energy sector and is trying to tap all available resources for electricity production.

The government is wooing private sector to pump money into energy schemes and for this reason two public-sector companies – Punjab Power Development Company and Punjab Quaid-e-Azam Solar Company – have been set up to step up work on the projects.

Punjab’s private sector has already labelled electricity shortage as the biggest hurdle in the way of doing business, especially for the textile industry.

It is believed that the province, which consumes 68% of total power supply, can increase its Gross Regional Product by 2% and raise exports by $1 billion, if it becomes self-sufficient in energy generation.

Under the renewable energy development and investment programme, the province will spend Rs3.8 billion on producing 20MW from four hydroelectric power stations. Total cost of these dams is projected at Rs13.3 billion.

An interesting feature of the energy budget is the initiative to disconnect 36 villages of the province – one each from every district – from the electricity grid. They will be supplied electricity by utilising renewable and clean energy sources like biomass, biogas, solar, wind and small hydroelectric power projects. For this, the province has earmarked Rs50 million for conducting feasibility studies.

In an effort to ensure uninterrupted electricity supply to industrial parks, the provincial government will establish four coal-fired power plants – each of 55MW. Two plants will be set up at the Faisalabad industrial estate and another two at the Sundar industrial estate, Lahore costing an estimated Rs1 billion each.

In the new fiscal year, the government has allocated Rs450 million for each of the industrial parks.

Biomass-based power plants will also be set up, with an allocation of Rs2 billion, near major wheat and rice producing areas. Another Rs500 million has been set aside for establishing bagasse-cum-coal based power plants near sugarcane producing districts.

The government has also planned to set up six coal-fired power plants – each having capacity of 1,320MW – with the assistance of private investors. For this, land and logistics infrastructure have been provided by the provincial government.

Published in The Express Tribune, June 14th, 2014.

Source : Punjab’s budget: Province to pour Rs31b into energy projects – The Express Tribune
@hasnain0099 @Tameem
Guys what are your views on underlined paragraph ?

@Leader @Jazzbot
I was searching for KPK power projects (for Healthy competition coz KPK or Punjab Its all about Pakistan), may be you can help...
Local energy suppliers have already been doing so in Punjab. For example, Sitara and Ibrahim energy also provide electricity to adjoining villages besides running their own plants. However, they are also authorized to collect the dues by themselves. On the other hand, Nishat Mills has been providing electricity to adjoining areas for quite a while before they stopped. The reason was that they were getting paid by the Government for providing electricity and weren't authorized to collect the bills. The mounting circular debt problems forced them to cut supply to local populous.
 

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