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Nandipur power project to collapse if it gets operational

I am not really here to give you emotional support or to listen to your venting to be honest. I don't write stuff without having complete understanding of the subject.

Both you and I know the truth. But you guys are so disconnected as a nation that every single issue, you'll play politics on it.

Zardari stopped this equipment to get bribes, the super expensive and sensitive machinery was put under serious humid conditions, which would cause it to get mold and other things inside the machinery. Its like Florida, the car dealers in the US avoid buying cars from Florida as the car's body or the bottom chassis has rotten iron due to serious humidity, rains and all. So the machinery, although looking solid from the top, had issues inside. For ANY internal mechanical issues, you can't fix as these are all proprietary technologies and the OEM manufacturer has to be involved. And they don't just open up all the machinery, they provide Technical Assistance on failure and to resolve issues. A total defect on a Tested platform before shipping doesn't really happen. This was an exception due to the climate this expensive hardware put left in for years.

And please, don't tell me "people with common sense knew that". NO one knew that or predicted the machinery would be damaged from the inside and the damage will come outside in increments. And one day, you'll have to open up the entire Turbine and realize that its rotten from the inside..... the "people" you are referring to with common sense, are gambling like IK did in cricket.

On every project, they already say "its going to fail", if it doesn't, then they complain about corruption or benefiting NS's family. If it does fail, then its "see we told you". People have brains and they know bullshiit from reality. A Cricketer who can't manage a stable marriage, can't run a country. In fact, he can't keep his statements consistent. Similarly, Zardari is ALL about easy money. Both IK and Zardari have selfish personalities and mental disorders, it's always about them and not about the people.

People who care about the people, are working without making too much noise and are trying to deliver and have been delivering stuff. That includes NS and RS and that partnership should continue as it will for sure benefit 200 million people and a country who's desperately looking for a better future!
project was stopped after 10% down payment (total cost was 23 billion rupees if i recall=2.3 billion rupees). final cost is 84 billion rupees or so..

now question is would it been better this 60-70 billion spent on coal plant 300-400mw could have easily been set up at this cost

about machinery being destroyed, 85 miilon dollars machinery was stuck in karachi port(8.5 billion rupees)

wwe are talking of scandles of 85 billion rupees not 8 billion rupees, even though most of the machinery was viable

point is its making loss because of poor planning i.e lack of gas to fuel it..if govt wasnt able to providde gas why did it spend over 80 billion rupees to spend it...
a decision of PML n govt
no need to close your eyes to plan and simple facts
 
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The whole world is trying to get away from HFO to generate electricity...IT was a political project by PPP, Zardari and Raja Rental to make kickbacks...
 
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Its a complex issue but as always the propagandists from IK are going to blame it on NS. Just the way propaganda works. You are asking ALL the common sense based right questions. But IK's people don't have the brain power to ask these questions or they ignore it. So at the end, everything becomes NS's fault, irrespective of the tremendous amounts of progress he's brought to Pakistan in just mere three years.

This is the FUNDAMENTAL difference between a successful India and a backwards Pakistan, which is finally moving towards advancement. In India, no matter how much people hate their rulers, they work as a team for INDIA. In Pakistan, no matter how much anyone work or don't work, everyone just blindly supports their own politician, often leaving their country behind and putting their personal preferences above the country's and so is the case here.

This equipment was ordered many years ago. Zardari, whenever in power, directly or indirectly, has a "special tax" aka, the bribe, that has to be paid even at a much lower level like $ 1-2 million dollar worth of imports like little parts (he's that cheap)!!! So if you as an importer or as a manufacturer don't give it, he'll have your stuff sealed and disappeared off the port. And that's what happened to the machinery.

Now the Chinese company involved waited and waited and then decided to leave and took a loss due to labor costs, and all. NS came into the power, reviewed the project, read the initial feasibility and re-did the assessments on the project.

As you are in the industry too I think (we had that salary discussion one time), so you would know how project assessments are. They conducted all those re-assessments and realized they'd have to pay more fees for the Chinese to re-engage as they took a loss waiting for the machinery and left in Zardari's time.

Since the machinery made it to Pakistan's port, it was left at the port in extremely bad weather and humid conditions and no one knew that the parts inside some of the generators and other sensitive control units had gone bad (corrosion and oxidation of parts, metal inside the generator and other machines).

So knowing that the project was a quick one to implement and would provide very quick electricity that can help the country's industry (this power plant is close to a LOT of industry and manufacturing in Pakistan), and that every Watt of energy available quickly was needed to enable businesses to run (Specially Textile for GSP plus), the government decided to swallow the bitter pill and implement the project, FULLY DISCLOSING the facts that the project cost has gone way up as the work was already behind, the Chinese had to be re-engaged and the entire team needed to be assembled and all, as the last time around the Chinese sat there for months waiting for party and had back dated dues to the government of Pakistan.

So after disclosing the cost factor, and knowing the quick implementation of this project through re-assessment done by professionals (as well as Audits from Transparency international, etc), the decision was made to continue on with the project due to its strategic nature and quick electric production capability, albeit more expensive (not uncommon in these situations), but providing a huge lift to the industry which was needed to produce for Textile to support European GSP Plus orders (in billions), which would've easily negate the higher cost factor if the project became functional right away.

The machinery was released and shipped and installed on priority basis. It started to work and it worked at its FULL capacity for a week (as outlined in the project's re-assessment, to produce 420+ MW's), before breaking down. Now the troubleshooting starts. Due to years long wait and these machines sitting on the port without usage, the 3 year manufacturer's warranty had run out.

Thinking the generator issues are no different than what's in other power plants, the Pakistani engineers, through tech support from the Chinese, tried to fix the issues. Obviously, it took them a while, then parts ordering to China and getting shipments and all and then parts of the plant started to produce electricity again in sub-capacity. But, by now, there was consistent issues, resulting in the newer turbines being totally down.

That's when the manufacturer was re-engaged and they sent their engineers, which again took weeks to inspect the equipment and then provide detailed assessment on corrosion and associated damage. Some parts were ordered and many parts weren't even available as these aren't groceries that the parts are available at your local wholesale stores.

The Chinese now suggested to give them the project, and let them bring their own labor who is used to working these machines and a new contract is either being signed or has already been signed. Under which, they'll replace parts and overhaul these generators to whatever extent needed. But the cost obviously goes further up. And that it would be faster to use all Chinese engineers used to implement these plants across the globe, then using newly trained Pakistani engineers as time and money was of essence.

There have been a few hundred people (professionals with decades of experience in power generation) involved with this massive project from the Pakistani side, including project and program managers, the power plants management and all. Plus, not all 100 projects go well. If 75% of the project Pakistan got going on, go online on time, starting 2018, Pakistan will start to show a different face to the world. A much more advanced one than say just three years ago.

Irrespective of other stuff, I don't understand how its ALL NS's fault, just like my Dog having a diarrhea is somehow NS's fault too, if you ask an IK followers.

Man, look how much effort I put in for you. My hands hurt with so much typing. But I am glad the full story is out for people's reference, once and for all!!!



Thank you for showing your REAL face like your leader IK!!! Calling others family, mother and sisters out in disrespectful manner seems to be you guys logic. That's why you've turned off half the Pakistan from ever voting for IK. No one likes anyone's families being disrespected when the actual issue is a factual issue needing facts!!! It is a medical fact that people who have issues in managing relationships aren't loyal. I can prove it and any doctor on here can prove it too. If you don't have the facts, don't insult others, you don't have to respond you know.

@Slav Defence @Irfan Baloch @Oscar : guys......read above. Is this why people come here so they can make demeaning and derogatory remarks about others family members when we are in the middle of a fact base discussion??? I think this member should be banned to be frank.

Can you specific about the equipment? Low temp burner, flow control valves, magmeters, complete comb chamber, 50/60 2P alternator, gas tubine set, coil preheater, what exactly went bad at the dock?
 
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Can you specific about the equipment? Low temp burner, flow control valves, magmeters, complete comb chamber, 50/60 2P alternator, gas tubine set, coil preheater, what exactly went bad at the dock?

Man, you are asking for too much information and without even a like for all this free details I am providing to you :nono:. Here goes, I am putting on my Engineering hat on, I didn't think you'd want this much technical details. But here:

The manufacturer was Dong Fang Electric and this was a multiple phased combined cycle thermal plant. Initially, the issues came up in the Flow Control and Safety Vales. Then, those got fixed (valves replaced after ordering new ones) and then one of the Combined Cycle Gas Turbines (CCGT) went down.

Which Pakistani engineers did testing on and couldn't resolve it. Later, the Chinese were asked to come in after weeks of remote testing and troubleshooting. They found that the Fans Blades of the Turbine and the Motor had serious corrosion. Due to Kinetic energy, when the turbine would spin and a small pieces inside the unit would break, the safety sensors would go off and the Turbine would automatically shut down. Since everything looked ok from the top, the manufacturer didn't allow opening up the entire turbine and then later ask for support, as it was out of warranty already. This stuff sat in the Salt water and Humidity for like 3 years since it landed in Karachil.

At some point Combustion Turbine, Heat Recovery Steam Generator and Steam Turbine were all down. That's when the Chinese came in and had to open up each plans and do a thorough investigation as to what the hell's going on. And the findings were published on corrosion and all.
 
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Why is there no Public Investigation Litigation on this? what about external auditors, any reports?
These all will happen in tenure of another Party if there is no Hand Shake but at last even they will be proved Guilty still they will got away by Labeling it "Revenge Politics".
 
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zardari????
he has nothing to do with it?

look at post of nandipur project way back people predicted this will happen as its common sense...it as stupid to invest here if you have no cheap gas, why not coal or even small hydro projects but who listens

you cannot run a desel engine power plant in our current setting and expect profit..complete incompetence by sharif..ofcourse we will dump it over zardari era..or wiat lets dump it over musharraf...
any good deed of last 20 years is nawaz and any bad deed of last 20 years is zardaris
Zardari had a ROLE in this fiasco , he was taking kick backs and nwaz league also has to answer for its INCOMPETENCE. Stop blaming one party as both are .
 
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Flow Control and Safety Vales. Then, those got fixed (valves replaced after ordering new ones) and then one of the Combined Cycle Gas Turbines (CCGT) went down.

Which Pakistani engineers did testing on and couldn't resolve it. Later, the Chinese were asked to come in after weeks of remote testing and troubleshooting. They found that the Fans Blades of the Turbine and the Motor had serious corrosion. Due to Kinetic energy, when the turbine would spin and a small pieces inside the unit would break, the safety sensors would go off and the Turbine would automatically shut down. Since everything looked ok from the top, the manufacturer didn't allow opening up the entire turbine and then later ask for support, as it was out of warranty already. This stuff sat in the Salt water and Humidity for like 3 years since it landed in Karachil.

At some point Combustion Turbine, Heat Recovery Steam Generator and Steam Turbine were all down. That's when the Chinese came in and had to open up each plans and do a thorough investigation as to what the hell's going on. And the findings were published on corrosion and all.

So it is not at all government or agency faults, it seems to be sub standard material, flow control valves for high pressure steam application (butterfly, ball and globe types irrespective of pnuematic or electric actuation) are rated for ASME CL2500 and sizes from NPS 2 to 72 and have should have teflon coated manifold, all Magmeters (emerson/rosemount , endress hauser) that I know of have issues of corrosion with steel probes which is overcome by tungsten coated probes an option offered for all petroleum and hard water zones. Electro magnetic flow meters too have manifolds treated with Teflon, Polyurethane, PTFE and Neoprene Liners...

As far as corrosion on turbine blades are concerned, it is highly unacceptable to it to corrode as they are used for steam application with the anticipation of major corrodents like sodium hydroxide, chloride, sulfate, and sulfides. Usually, the level of contaminants present in steam is not high enough to corrode the system components, so even with super heated steam, the material selection is such that corrosion is minimal. The pitting that usually happens in turbines is more often attributed to variable uneven surface flow of steam, but classified as erosion, So if the blades corroded sitting in humid dock in karachi, then for sure it shouldn't be used as it's a disaster waiting to happen.

Alternators dont corrode, especially if these are Brushless dc Direct drive, if not even with 2P or 3P alternators, Copper winding or ferromagnetic core won't corrode as it is hermetically sealed.

Transmission Shaft / rotor shaft corrosion is superficial, and is impossible for stainless steel ti hardened steel to corrode enough in a span of 2 years unless you drop it down the sea bed with an electrode/ battery and dissimilar metal.

Pakistani agencies should look into this project, looks like supplier has given you guys substandard equipment.

@niaz @Oscar ... what seems to be going on
 
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Its a complex issue but as always the propagandists from IK are going to blame it on NS. Just the way propaganda works. You are asking ALL the common sense based right questions. But IK's people don't have the brain power to ask these questions or they ignore it. So at the end, everything becomes NS's fault, irrespective of the tremendous amounts of progress he's brought to Pakistan in just mere three years.

This is the FUNDAMENTAL difference between a successful India and a backwards Pakistan, which is finally moving towards advancement. In India, no matter how much people hate their rulers, they work as a team for INDIA. In Pakistan, no matter how much anyone work or don't work, everyone just blindly supports their own politician, often leaving their country behind and putting their personal preferences above the country's and so is the case here.

This equipment was ordered many years ago. Zardari, whenever in power, directly or indirectly, has a "special tax" aka, the bribe, that has to be paid even at a much lower level like $ 1-2 million dollar worth of imports like little parts (he's that cheap)!!! So if you as an importer or as a manufacturer don't give it, he'll have your stuff sealed and disappeared off the port. And that's what happened to the machinery.

Now the Chinese company involved waited and waited and then decided to leave and took a loss due to labor costs, and all. NS came into the power, reviewed the project, read the initial feasibility and re-did the assessments on the project.

As you are in the industry too I think (we had that salary discussion one time), so you would know how project assessments are. They conducted all those re-assessments and realized they'd have to pay more fees for the Chinese to re-engage as they took a loss waiting for the machinery and left in Zardari's time.

Since the machinery made it to Pakistan's port, it was left at the port in extremely bad weather and humid conditions and no one knew that the parts inside some of the generators and other sensitive control units had gone bad (corrosion and oxidation of parts, metal inside the generator and other machines).

So knowing that the project was a quick one to implement and would provide very quick electricity that can help the country's industry (this power plant is close to a LOT of industry and manufacturing in Pakistan), and that every Watt of energy available quickly was needed to enable businesses to run (Specially Textile for GSP plus), the government decided to swallow the bitter pill and implement the project, FULLY DISCLOSING the facts that the project cost has gone way up as the work was already behind, the Chinese had to be re-engaged and the entire team needed to be assembled and all, as the last time around the Chinese sat there for months waiting for party and had back dated dues to the government of Pakistan.

So after disclosing the cost factor, and knowing the quick implementation of this project through re-assessment done by professionals (as well as Audits from Transparency international, etc), the decision was made to continue on with the project due to its strategic nature and quick electric production capability, albeit more expensive (not uncommon in these situations), but providing a huge lift to the industry which was needed to produce for Textile to support European GSP Plus orders (in billions), which would've easily negate the higher cost factor if the project became functional right away.

The machinery was released and shipped and installed on priority basis. It started to work and it worked at its FULL capacity for a week (as outlined in the project's re-assessment, to produce 420+ MW's), before breaking down. Now the troubleshooting starts. Due to years long wait and these machines sitting on the port without usage, the 3 year manufacturer's warranty had run out.

Thinking the generator issues are no different than what's in other power plants, the Pakistani engineers, through tech support from the Chinese, tried to fix the issues. Obviously, it took them a while, then parts ordering to China and getting shipments and all and then parts of the plant started to produce electricity again in sub-capacity. But, by now, there were consistent issues, resulting in the newer turbines being totally down.

That's when the manufacturer was re-engaged and they sent their engineers, which again took weeks to inspect the equipment and then provide detailed assessment on corrosion and associated damage. Some parts were ordered and many parts weren't even available as these aren't groceries that the parts are available at your local wholesale stores.

The Chinese now suggested to give them the project, and let them bring their own labor who is used to working these machines and a new contract is either being signed or has already been signed. Under which, they'll replace parts and overhaul these generators to whatever extent needed. But the cost obviously goes further up. And that it would be faster to use all Chinese engineers used to implement these plants across the globe, then using newly trained Pakistani engineers as time and money was of essence.

There have been a few hundred people (professionals with decades of experience in power generation) involved with this massive project from the Pakistani side, including project and program managers, the power plants management and all. Plus, not all 100 projects go well. If 75% of the project Pakistan got going on, go online on time, starting 2018, Pakistan will start to show a different face to the world. A much more advanced one than say just three years ago.

Irrespective of other stuff, I don't understand how its ALL NS's fault, just like my Dog having a diarrhea is somehow NS's fault too, if you ask an IK follower.

Man, look how much effort I put in for you. My hands hurt with so much typing. But I am glad the full story is out for people's reference, once and for all!!!



Thank you for showing your REAL face like your leader IK!!! Calling others family, mother and sisters out in disrespectful manner seems to be you guys logic. That's why you've turned off half the Pakistan from ever voting for IK. No one likes anyone's families being disrespected when the actual issue is a factual issue needing facts!!! It is a medical fact that people who have issues in managing relationships aren't loyal. I can prove it and any doctor on here can prove it too. If you don't have the facts, don't insult others, you don't have to respond you know.

@Slav Defence @Irfan Baloch @Oscar : guys......read above. Is this why people come here so they can make demeaning and derogatory remarks about others family members when we are in the middle of a fact base discussion??? I think this member should be banned to be frank.
wish Sherifs had you in their media team. I respect your passion and wish for the sake of our country that your belief in Sherifs is well founded and brings us fruit

Post reported. PTI falnboys should consult mental doctor first before accusing others for being mad.
please dont quote troll posts @Viper0011.
guys you know better. just quote a little bit to give us an idea who is offender.

edit your posts.
 
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ISLAMABAD: The Nandipur power project debacle has taken a new turn as in case it gets operational and generates 425-450 megawatts electricity from now onwards, it will collapse and will turn out to be a huge liability of the government as under the existing tariff of Rs11.3073 on furnace oil determined by Nepra, its electricity generation cost is not recovered.



With the costs and tariff determined by the learned Authority, the project will not be able to even pay the lenders’ payments and it will collapse like other Gencos (electricity generation companies) within days, reveals Northern Power Generation Company Limited (NPGCL) in its review petition on Nandipur power project submitted with National Electric Power Regulatory Authority (Nepra) of which a copy is available with The News.



Even if the power plant gets operational, it will continue to inflict mammoth loss of Rs30 billion to Pakistan’s national exchequer and it will be a huge liability of the government, one of the members of the board of directors of NPGCL confided to The News.



More importantly, he divulged, if the said project gets operational and generates 425MW electricity, then the national exchequer will have to brave loss of Rs6.5 on every unit to be produced by the plant to cater to the full generation cost of one megawatt and if the government does not pick up the financial damage, then Rs6.5 per unit will be added to the circular debt as the tariff given by the Nepra stands at Rs11.3073 on furnace oil against the tariff of Rs18.168 per unit.



The additional loss to the exchequer due to simple cycle operations is estimated at Rs5 per unit in addition to Rs6.5 per unit not allowed by Nepra. This means if the plant is operated for one month, then the combined additional loss will stand at Rs2.5 billion that will be at Rs30 billion if the project is run for one year.



This means if the project comes on stream, then there is a huge loss to the national exchequer at the existing tariff and in case it is not allowed to get operated then the huge amount of Rs58 will go into drain.



However, the petitioner seeking the review of the tariff already given by the regulator dated April 4, 2015 pleaded that tariff determined by the Authority will not help recover the electricity generation cost, resultantly, Nandipur power plant will collapse in case it gets operational from now onward.



The board of directors’ meeting authorised Muhammad Shoaib Rasheed, Chief Executive Officer NPGCL, for filing of leave for review with Nepra, who as a petitioner asked the regulator to approve, and revise the tariff based on actual expenses. In the petition, NPGCL sought the determination of operation and maintenance (O&M) tariff on realistic basis for HSFO Fuel with multiple of 3.5 to gas O&M and fix O&M tariff along with due indexation.



The petitioner mentioned and argued that incurred and verified EPC (engineering, procurement and construction) cost amounting to $382.52 million should the part of the tariff. He also asked for inclusion of IDC (interest during construction) at actual for total construction period. The NPGCL also asked Nepra to include non-EPC costs of $46.07 million. The petitioner also urged to include the component of financing fees, saying it should be calculated and allowed at 3 percent of financing as per precedence.



In addition, the petitioner advocated for the inclusion of the cost of the spare parts amounting to $15 million in the cost of the project which should be reflected in the tariff. “The gas connection costs should also be allowed in the tariff,” the petitioner pleaded, adding, “Indexation base of conversion rates for ROE (return on equity) and ROEDC (return on equity during construction) should be of Rs90.” The petitioner stressed that ROEDC should be calculated on FIFO basis instead of weighted average, saying the project’s thermal efficiency to be accepted as 44 percent for HSFO fuel.



The petitioner also asked for adjustment mechanism for working capital tariff and demanded omission of time period clause from determination. The NPGCL in the leave for review petition also pleaded that open cycle tariff should be allowed against demand of NPCC (national power control cell) stressing the regulator to rectify the IRR (internal rate of return) promised to the investor by allowing the above said adjustments.



Secretary Water and Power Younas Dagha was earlier phoned, sent many SMSs seeking the answers of the questions that include where does Nandipur power plant fall in the merit order if it generates electricity on furnace oil and what is the electricity generation cost by the project and does the tariff given by Nepra fulfils the generation cost of electricity of the project, he did not respond till the filing of this report.



The questionnaire was sent on September 13 (Saturday last), but there was no response and then The News again reminded him on Sunday of the SMS and sought the detailed answers, but the secretary stayed unmoved and opted to remain non-responsive.



Then spokesman for the ministry Zafar Yab Khan was also contacted and sent the same questionnaire. He first promised to arrange the answers from the secretary of the ministry, but even after lapse of three days Zafar Khan did not provide the answers, saying, “The issues you have highlighted in the questionnaire, ministry is not in apposition to respond them and you better make contact with managing director of Nandipur.” However, Capt Muhammad Mehmood, MD Nandipur power plant, first showed willingness to discuss and answer questions but he did not do so despite many attempts made by The News.



However, the document pertaining to review petition clearly gives the answer that Nandipur project is not feasible under the existing tariff and if its get operational it will turn out to be huge liability.

Nandipur power project to collapse if it gets operational - thenews.com.pk
This is a perfect example of "gale ki girgit". Doomed if you do...doomed if you don't ..Pakistani leadership made a huge mistake by agreeing to a rate of return to investors that was way higher then the actual revenue realization by the project... Looks like this is likely fate of almost every Chinese funded/financed project in Pakistan.
 
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wish Sherifs had you in their media team. I respect your passion and wish for the sake of our country that your belief in Sherifs is well founded and brings us fruit

I don't really care for the sharrifs. If they are found guilty, please, by all means, put them in a jail. But, while nothing is proven, and they are making progress, let the country go forward. Why damage the country because of people's personal love for others? It's time to be silent, support the system, which is the government and hold these people accountable for every claim they made, and if they fulfilled it right, when they leave.

And if they didn't do 75% of the work correctly, then they become another Zardari, just how a system works. Violence and wrong leaders in wrong positions (generals being the Presidents), have caused Pakistan 70 years of destruction and backwards movement. It's finally moving forward so let's supprt it and move forward with it. The entire nation and the globe awaits for a modern and stable, growing economic power called Pakistan to finally show up on the map!!! Why try to stop such a critical point in the entire history of Pakistan from happening?
 
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This is a perfect example of "gale ki girgit". Doomed if you do...doomed if you don't ..Pakistani leadership made a huge mistake by agreeing to a rate of return to investors that was way higher then the actual revenue realization by the project... Looks like this is likely fate of almost every Chinese funded/financed project in Pakistan.

There is another way of looking at it. If the plan goes operational and supports the Textile industry in 24*7 industry operations in three shifts, that additional revenue will off set any increase in Tarriff. They announce everything to disclose everything honestly and fully. Doesn't mean there are no other ways to leverage something else to reduce the price. People who are negative and don't have experience at a strategy level, will always show drama for political reasons.

If I drive a 100k car to work, I think my car is too expensive, but if it helped me bring home $ 1 million in income...was it really that expensive?? NO!!!

Early stage scare offs are taking place for political gains. 90% of the people bit*ching about this stuff can't read a basic feasibility report on here. Let alone do something positive with it!!! All talk, no action. That's the complainers and IK and his buddies for you with Zero intellect or common sense!!!
 
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90% of the people bit*ching about this stuff can't read a basic feasibility report on here.

Respected Sir

Is the feasibility report publicly available? Cursory google search didn't show any result and I couldn't find any concrete information of ROI guaranteed also.

I have some experience in power sector financing like those of TATA and Essar of India and the trouble faulty financial closure brings to these projects later on.

I would be grateful if you could spare some of your time and provide following details:

a. Initial Phase - Buyer's credit/Suppliers Credit? Disbursement and Payment terms - Bullet or not? Tenure of financing? Moratorium given if any? Profitability Projections? Fuel Supply linkages?

b. Post Buyer's and Supplier's Credit - Consortium of Lenders? FCBs or otherwise? Interest Rate (Nominal Basis), Guarantees and contingent conditions? Events of Default?

c. Period of operation of plant ? Working capital finance?

d. End Tariff for consumers? Tariff for distribution agencies or institution? Losses and leakages allowance factor? Recovery Factor? Hedging against fuel and FCs? Cost of Hedging?

Regards
 
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There is another way of looking at it. If the plan goes operational and supports the Textile industry in 24*7 industry operations in three shifts, that additional revenue will off set any increase in Tarriff. They announce everything to disclose everything honestly and fully. Doesn't mean there are no other ways to leverage something else to reduce the price. People who are negative and don't have experience at a strategy level, will always show drama for political reasons.

If I drive a 100k car to work, I think my car is too expensive, but if it helped me bring home $ 1 million in income...was it really that expensive?? NO!!!

Early stage scare offs are taking place for political gains. 90% of the people bit*ching about this stuff can't read a basic feasibility report on here. Let alone do something positive with it!!! All talk, no action. That's the complainers and IK and his buddies for you with Zero intellect or common sense!!!
But if cost of servicing that 100K car pushes me into something called Cirtular debt.. then the things become a little scary.. because my 1Million income might get consumed in servicing other aspects of my life... and I might have to pay for my car's Gas and Maintenance on credit card.. that i might not end up paying for few months...

Unfortunately for Pakistan.. the story is bit different... here the Chinese investors first demand an Fixed ROI (return on investment) that is at times twice the national average return on other similar projects. this in turn makes electricity expensive... which will in turn increase cost of industrial input...and cost of goods produced.. thus making products costlier then competition... now that's a problem...right?
 
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So it is not at all government or agency faults, it seems to be sub standard material, flow control valves for high pressure steam application (butterfly, ball and globe types irrespective of pnuematic or electric actuation) are rated for ASME CL2500 and sizes from NPS 2 to 72 and have should have teflon coated manifold, all Magmeters (emerson/rosemount , endress hauser) that I know of have issues of corrosion with steel probes which is overcome by tungsten coated probes an option offered for all petroleum and hard water zones. Electro magnetic flow meters too have manifolds treated with Teflon, Polyurethane, PTFE and Neoprene Liners...

As far as corrosion on turbine blades are concerned, it is highly unacceptable to it to corrode as they are used for steam application with the anticipation of major corrodents like sodium hydroxide, chloride, sulfate, and sulfides. Usually, the level of contaminants present in steam is not high enough to corrode the system components, so even with super heated steam, the material selection is such that corrosion is minimal. The pitting that usually happens in turbines is more often attributed to variable uneven surface flow of steam surface but classified as erosion, So if the blades corroded sitting in humid dock in karachi, then for sure it shouldn't be used as it's a disaster waiting to happen.

Alternators dont corrode, especially if these are Brushless dc Direct drive, if not even with 2P or 3P alternators, Copper windings or ferromagnetic core won't corrode as it is hermetically sealed.

Shaft corrosion is superficial, and is impossible for stainless steel ti hardened steed to corrode enough in a span of 2 years unless you drop it down the sea bed with an electrode/ battery and dissimilar metal.

Pakistani agencies should look into this project, looks like supplier has given you guys substandard equipment.

@niaz @Oscar ... what seems to be going on

Exactly what I was thinking. Its highly unusual for turbine blades to rust. Almost unheard of, considering the conditions. Makes no sense. Either the machinery was really sub standard or what was stated is not true.
 
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