Pakistan's Energy & Water - News and Updates

[SHAMK9]

Diamer-Bhasha Dam ADB mission satisfied with on-site social, engineering work
ISLAMABAD: In a positive and remarkable development, a three-member review team of the Asian Development Bank (ADB) that is to give Pakistan $5 billion for the most strategic Diamer-Bhasha dam visited the project site and appreciated on-ground engineering and social work being done by Wapda, a senior official in the Ministry of Water and Power told The News.

The United States has also intimated that it would give $1 billion for the dam in five years — $200 million each year, the official said. To a question, he said, the US agreement to give $1 billion would pave the way for major international financial institutions to provide more funding for the project.

The official said the World Bank, which was earlier hesitant to fund the project, is now very much willing to fund it because of the US willingness to provide $1 billion. The top management of the World Bank has in principle agreed to extend a loan for the project, he said, adding that when the new president of the bank takes charge, Pakistan would pursue its case more vigorously.

To a question, the official said, the Manila-based ADB would remain the leading donor institution. He said the purpose of the ADB review mission’s visit was to witness on-ground engineering and social work being carried out by Wapda. It visited the work on 12 local contracts for construction of Wapda offices, colonies, contractor camps, road infrastructure, etc. The team visited the community seminary and first-ever school for girls in Chilas built by Wapda and appreciated the social services being provided to locals, he said.

The ADB mission also visited Shatial in Kohistan district of Khyber Pakhtunkhwa and Thor Valley, Khanberi Valley and DHQ Hospital Astor in Gilgit-Baltistan as well as witnessed the functioning of the Mobile Health Unit provided by Wapda for the population affected by the project, the official said. It was impressed by the social change in the area because of the project, he said, adding that the project would help end of bonded labour (locally known as Kalang) in Khanberi Valley.

The official said the land acquisition for the project is in progress while 12 contracts for the construction of Wapda offices, infrastructure, etc, in the project area have already been awarded.
Diamer-Bhasha Dam ADB mission satisfied with on-site social, engineering work - thenews.com.pk

17 projects underway to generate 20,000MW
LAHORE: Pakistan Water and Power Development Authority (WAPDA) was implementing on priority a least-cost energy generation plan to help reduce electricity shortfall and increase the ratio of low-cost hydrol electricity in the national grid.

WAPDA Chairman Shakil Durrani said “Under the plan, 17 large projects are under construction/at detailed engineering stage, which will generate more than 20,000 megawatts (MW) of electricity and store about 12 million acre feet (MAF) of water.

Presiding over a progress review meeting he emphasise the importance of hydropower to meet the electricity needs in the country.

He urged the project managers to complete these projects within stipulated time. Hydropower is the cheapest electricity generated through indigenous resource of water. The average tariff for hydel electricity is Rs 1.54 per unit as compared to the overall electricity tariff of about Rs 9 per unit.

The meeting was told seven projects with cumulative capacity of more than 1,500 MW are under construction. Out of these, five projects of about 400 MW will be completed in the current year, while the 969 MW-Neelum-Jhelum and the 106 MW-Golen Gol hydropower projects are progressing at a good pace. In addition, the 4,500 MW Diamer Basha Dam with gross storage capacity of 8.1 MAF and the 84 MW-Kurram Tangi Dam with water storage capacity of 1.2 MAF have also been initiated. Besides, the 1,410 MW-Tarbela 4th Extension and the 7,100 MW-Bunji Hydropower Project will soon be available for initiating construction work, as detailed engineering designs of the two projects are almost complete.

Six mega projects are currently in the stage of their detailed engineering designs, including the 740 MW-Munda Dam multipurpose project with storage capapacity 1.3 MAF, the 4,320 MW-Dasu with storage capacity of 1.1 MAF, the 122 MW-Keyal Khwar and three other projects of 1,761 MW. staff report
Daily Times - Leading News Resource of Pakistan

 

[ziaulislam]

Efforts on to explore oil, gas in Balochistan
From the Newspaper | Saleem Shahid | 5 hours ago
0







Kurd said that the Balochistan government has purchased a new airplane, adding, “This would benefit the future government which would come in power after next general elections.”

QUETTA: The government is making an all-out effort to explore new oil and gas reserves sites in different parts of Balochistan.

This was stated by Balochistan Finance Minister Mir Asim Kurd at a post-budget press conference here on Tuesday. He was accompanied by provincial minister for information Younis Mullahzai and finance secretary Mir Dostain Khan Jamaldani.

“The provincial government is well aware of the depleting gas reserves and realises that the situation would also affect Balochistan’s share in the federal resources. At present, different companies are working in Zain Koh area of Dera Bugti district, Jhal Magsi and some others area. Huge gas reserves have been found in Zain Koh area. This reserve is much bigger than the Sui reserves in Sui,” Kurd informed.

Replying to a question, he said that the provincial government has allocated around Rs5 billion for the energy sector. He said that 77 schemes of energy sector have been included in the next year’s Public Sector Development Programme, along with 52 new schemes.

“We are working on different projects to resolve the energy crisis in the province, including installing wind miles in Nokondi area of the
Chagai district. Also, a survey report reveals that 10,000 MW electricity could be generated using underground warm water in Koh-e-Sultan area of Balochistan,” he said.

He further informed that Iran was supplying around 130 MW of electricity in coastal areas of Balochistan. “Iran would further provide 1000MW and a memorandum of understanding has been signed in this regard,” he said.

“Rs13.53 billon has been earmarked for law and order in the Balochistan Budget for Fiscal Year 2012-13. Police budget has been increased by 19.6 per cent, Balochistan Constabulary by 13 per cent and Levies Force Budget by 16 per cent,” he said.

The budget for procurement of equipments, vehicles and weapons for law enforcement agencies has also been increased by 50 per cent in comparison with previous year.

Referring to the education sector, he informed that 85 per cent of the Education Budget is allocated for release of salaries to teachers and other staff.

Kurd said that the Balochistan government has purchased a new airplane, adding, “This would benefit the future government which would come in power after next general elections.”

On health, he said that the provincial government has provided Rs700 million to major public hospitals in the country so that patients from Balochistan could get medical treatment there.

He said that Rs179.93 billion Balochistan Budget for fiscal year 2012-13 includes Rs107.28 billion for ongoing expenditures

 

[albert001]

The lack of sound local and global governance poses a larger risk than we may anticipate today. Country risk at the individual level varies due to conflict of interests, differing norms and values, scarcity of resources and war. World bodies like the UN and G20 have yet to endorse a decision to combat global risk effectively. We are surrounded by demographic challenges, and there is huge fiscal pressure on advanced economies, leading to a higher risk of social stability within emerging economies. There is a prevalent risk of war and the possibility of renewed nuclear proliferation between states.

 

[Nishan_101]

Efforts on to explore oil, gas in Balochistan
From the Newspaper | Saleem Shahid | 5 hours ago
0







Kurd said that the Balochistan government has purchased a new airplane, adding, “This would benefit the future government which would come in power after next general elections.”

QUETTA: The government is making an all-out effort to explore new oil and gas reserves sites in different parts of Balochistan.

This was stated by Balochistan Finance Minister Mir Asim Kurd at a post-budget press conference here on Tuesday. He was accompanied by provincial minister for information Younis Mullahzai and finance secretary Mir Dostain Khan Jamaldani.

“The provincial government is well aware of the depleting gas reserves and realises that the situation would also affect Balochistan’s share in the federal resources. At present, different companies are working in Zain Koh area of Dera Bugti district, Jhal Magsi and some others area. Huge gas reserves have been found in Zain Koh area. This reserve is much bigger than the Sui reserves in Sui,” Kurd informed.

Replying to a question, he said that the provincial government has allocated around Rs5 billion for the energy sector. He said that 77 schemes of energy sector have been included in the next year’s Public Sector Development Programme, along with 52 new schemes.

“We are working on different projects to resolve the energy crisis in the province, including installing wind miles in Nokondi area of the
Chagai district. Also, a survey report reveals that 10,000 MW electricity could be generated using underground warm water in Koh-e-Sultan area of Balochistan,” he said.

He further informed that Iran was supplying around 130 MW of electricity in coastal areas of Balochistan. “Iran would further provide 1000MW and a memorandum of understanding has been signed in this regard,” he said.

“Rs13.53 billon has been earmarked for law and order in the Balochistan Budget for Fiscal Year 2012-13. Police budget has been increased by 19.6 per cent, Balochistan Constabulary by 13 per cent and Levies Force Budget by 16 per cent,” he said.

The budget for procurement of equipments, vehicles and weapons for law enforcement agencies has also been increased by 50 per cent in comparison with previous year.

Referring to the education sector, he informed that 85 per cent of the Education Budget is allocated for release of salaries to teachers and other staff.

Kurd said that the Balochistan government has purchased a new airplane, adding, “This would benefit the future government which would come in power after next general elections.”

On health, he said that the provincial government has provided Rs700 million to major public hospitals in the country so that patients from Balochistan could get medical treatment there.

He said that Rs179.93 billion Balochistan Budget for fiscal year 2012-13 includes Rs107.28 billion for ongoing expenditures

Rather than taking electricity from IRAN for Coastal Areas, we should look towards taking Gas lines as well as Oil lines from them and build up power plants there for electricity generation as well refineries that will be able to supply fuel for transportation. All this will generate a lots of jobs and private sector can do that any time.

 

[albert001]

WAPDA operates the majority of thermal power plants in Pakistan, with over 5,000 MW of installed capacity in its control. The Guddu plant is the largest plant operated by WAPDA,there is no power plant operational issue with a capacity of 1,650 MW. In recent years, growth in Pakistan’s thermal power generation has come primarily from new independent power producers (IPPs), some of which have been funded by foreign investors. The two largest IPPs in Pakistan are Kot Addu (1,600 MW) and Hubb River (1,300 MW), both of which supply power to WAPDA. The Kot Addu plant was privatized in 1996 (from WAPDA). International Power holds a 36 percent equity stake in the Kot Addu plant. The Pakistani government has recognized that the majority of thermal plants in the country are run on fuel oil and produce considerable amounts of pollution. In an effort to reduce pollution, the government would like to see fuel oil-power plants converted to natural gas in the future.

 

[Introvert]

Korea keen to invest in 2 hydropower projects
28 August, 2012

ISLAMABAD: The Korean authority expressed its keen interest for making investment in the construction of two mega billion-dollar hydropower projects including Diamer Bhasha Dam with power generation capacity of 4,500 megawatts (MW) and Neelum-Jhelum hydropower project with 969 MW capacity.

The high-level Korean delegation led by Minister for National Restoration, Republic of South Korea Myung-Pil Shim called on Federal Minister for Water and Power Ch Ahmed Mukhtar here on Monday.

The delegation expressed its keen interest to invest in hydropower and water sector projects in Pakistan and mutual cooperation in various other projects of flood protection and technical assistance in the water sector.

Shim said that Korean companies were already working in different water and power sector projects and more investors were keen to invest here. Korea has expertise in the field of flood mitigation and interested to share its experience and technical know-how with Pakistan.

He also discussed various issues of mutual cooperation to further enhance economic ties between the two countries. Later, a presentation on Four River Restoration Project was given by the Korean side regarding flood protection and river management.

Mukhtar said that Pakistan had great potential in the hydropower generation and 59,000 MW determined and identified hydel power projects, adding that Pakistan was now focusing on indigenous resources to generate cheap electricity.

The work on a number of hydel power and water storage projects was in progress. The Korean delegation offered to invest in the Neelum-Jhelum hydropower project of 969 MW and Diamer Bhasha Dam project of 4,500 MW. The minister assured that the government would support and facilitate Korean investors and welcome its investment in water and power sector projects.

Earlier, a detailed presentation was given by the Water and Power Development Authority (WAPDA) chairman on the hydel power potential, ongoing and future projects. He said that five hydel power projects of 1,422 MW would be completed within three years while eight hydel projects of 21,015 MW are ready for implementation.

 

[Introvert]

MoU singed to install 50 MW wind power generating unit

KARACHI: Sindh Government has signed an MoU with WIKOV WIND A.S, a Czech Republic company for the power generation of 50 MW at the wind corridor in Gharo Jhimpir Distt Thatta.

The MoU was inked by D.G, Sindh Board of Investment Mr Muhammad Riazuddin and Czech Republic company head Mr. Martin Wichterle in the presence of Chief Minister Sindh Syed Qaim Ali Shah, Minister for Finance Syed Murad Ali Shah and Minister for Information Mr. Sharjeel Enam Memon and others.

A high level investment delegations from Czech Republic also witnessed the ceremony. Addressing the ceremony Sindh Chief Minister said that Sindh is blessed with natural resources like wind and coal which not only can fulfill its own energy requirements but also the whole country.

"Sindh is the first province to take lead in power generation through wind and it has the potential of generating 50 thousand MW of power through wind in coastal belt of the province" he added. Syed Qaim Ali Shah said that previous governments didn't generate even a single MW and it was PPP government under Shaheed Mohtarma Benzair Bhutto which initiated power generation projects in Badin but unfortunately this important project was shelved by Nawaz Sharif government.

"If that project had not been abandoned the country would not have been facing the present energy crisis, "he added. He said that generating power through wind is a novel idea and the credit for this goes to President Asif Ali Zardari who has taken keen interest in it.

The Chief Minister Sindh said that investment friendly polices of Sindh government are attracting more and more foreign investment in the province, which also reflects the confidence of inventors on the governments initiatives.

Later talking to Media persons the C.M. informed that a foreign company wants to invest in Power generation through coal in Badin district. Minister for Finance Syed Murad Ali Shah briefing about the details of the MoU said that Sindh government will execute the project and arrange the funds while Czech Republic company will provide the required material, machinery and technology. He added that financing for the 50 MW project power generation will be arranged before the 31st December this year while construction will start in January 2013.

Czech delegation head Martin Wichterle said that it was a great opportunity for them to invest in power generation through wind and we will bring more business for local industry.

He added that Czech Republic wants to enhance the business and investments opportunities in Pak and many other power generation projects are under consideration which will help in resolving the energy crisis faced by Pakistan and bilateral cooperation in the field of trade business and investment will also get boost.

MoU singed to install 50 MW wind power generating unit

 

[fatman17]

OGDC discovers oil, gas reservesFrom the Newspaper.

Khaleeq Kiani


ISLAMABAD: The state-run Oil and Gas Development Company Limited (OGDC) on Wednesday announced discovery of new reserves in Karak district of Khyber Pakhtunkhwa, which would boost its daily oil output by about 8 per cent.

A company spokesman said the Nashpa-3 well located in Karak district initially produced 3,165 barrels per day (bpd) of oil and about 15 million cubic feet per day (mmcfd) of gas, boosting the total production in the Nashpa region to about 11,165bpd of oil and 43mmcfd of gas. The total oil production of the company would now increase to about 44,610bpd or 64 per cent of the country’s total oil output while gas output would go up to approximately 1,030mmcfd.

The country’s total oil production has increased to about 72,500bpd against the total consumption of about 300,000bpd.

The OGDC spokesman said all the employees of the company would be paid a one-month basic pay as bonus on the discovery of the reserves.

“The structure of Nashpa-3 well was delineated, evaluated, drilled and tested utilising indigenous expertise,” he said. The oil produced from the well would initially be put into the system through bowzers (oil tankers) because building a pipeline would take some time.

Besides OGDC, Nashpa-3 has shareholding from Pakistan Petroleum Limited (PPL) and Government Holdings Private Limited (GHPL).

After Drill Stem Testing (DST) in new horizons of Samanasuk, Lumshiwal and Hangu formations, significant reserves of hydrocarbons have been confirmed at Nashpa-3 well.

The actual flow potential of the well will be established later.

 

[ajtr]

Neelum Jhelum project: Irregularities unearthed in costing, award of contract

The government appears to be unable or unwilling to fix responsibility on officials or the contractor causing delay in implementation of project. PHOTO: FILE
ISLAMABAD:
The Planning Commission (PC) has unearthed inconsistencies in the award of contract for the 969 megawatt (MW) Neelum Jhelum hydropower project to a Chinese firm during the Musharraf regime.
The irregularity surfaced after the Ministry of Water and Power submitted a revised draft of the project’s PC-1, in order to approve a raise in the project’s cost from Rs84.5 billion to Rs321.3 billion. However, refusing the new cost figure as too exorbitant, the PC’s Central Development Working Party (CDWP) has approved a raise in the project’s cost to Rs274.8 billion against the earlier estimate of Rs84.5 billion.
According to documents available with The Express Tribune, during scrutiny of the project, the energy wing of the PC noted that the contract had been awarded to a joint venture of Chinese firms China Gezhouba Group of Companies (CGGC) and the China Machinery Engineering Company (CMEC). The contract had been awarded on December 19, 2007, at a cost of Rs90.94 billion – in contravention to the approved Rs84.5 billion cost for the project.
The energy wing also raised several questions over the project’s implementation. It noted that the original project was approved on December 12, 1989, at a total cost of Rs15.23 billion. This cost was later revised on February 28, 2002, to Rs84.5 billion; but delays in the awarding of the contract continued even after the revision.
Documents show that the government appears to be unable or unwilling to fix responsibility on the officials or the contractor causing the delay in implementation. The Neelum Jhelum Hydropower Project’s costs have now ballooned to a massive Rs274.8 billion. This will make it a one-of-its-kind hydel project, insofar as it will generate electricity at a cost of over Rs10 per unit, against existing hydel projects’ cost of 16 paisa per unit.
Importantly, the government is mulling passing the economic costs of these delays and inefficiencies on to consumers. The government is deciding on arranging 40% of the financing for the new total project cost through a levy imposed on energy by the Government of Pakistan. At present, consumers are already paying a 10 paisa per unit surcharge, which puts Rs6 billion in the government’s pocket every year.
Furthermore, an amount of Rs1.2 billion was also provisioned – in the project summary tabled before the PC – for the services of 260 police personnel, who would provide security for project staff. The energy wing expressed serious reservations over this anomaly, and asked the sponsor to justify the need for such high security, and details of salary packages for hired personnel.
In response to the objections raised, the Neelum Jhelum Hydropower Company (Private) Limited – an implementing agency of the project – said the Government of Pakistan had started the project on a very short notice at the time of its inception; given that India was constructing the Kishan Ganga dam upstream of the Neelum river; so as to claim its right over the river by completing the project earlier than its neighbour.
It said that the process of bidding was initiated on a supplier credit basis, but this strategy failed twice in 2005. Subsequently, the Government of Pakistan was requested for financing, and allowing the bidding on a buyer’s credit basis: the demands were accepted; the Economic Coordination Committee approved the same on October 2, 2006; and bids were invited accordingly.
The energy wing was not satisfied over this response.
Some officials said that claiming the project was bungled due to an ongoing fight over water rights is a lame excuse, and that it does not explain why the contract was mishandled. They said that Pakistan has rights over the Neelum River under the Indus Water Treaty, and India cannot just claim its rights over it.

 

[SHAMK9]

Korea ready to invest in energy sector

KARACHI: Korea is ready to invest in the energy sector of Sindh.
Korea has utilized US$ 30 million from economic development cooperation fund on conversion of Chandika Medical College Power Supply into Solar Energy and development of children hospital in Larkana under Economic Development Cooperation Fund (EDCF).
This was expressed by Choongjoo Choi, Ambassador of Korea in Pakistan, who visited Sindh Board of investment (SBI).
The meeting aimed to discuss follow-up on projects initiated during Chief Minister Sindh's visit to Korea during May 2011.
The Ambassador appreciated efforts being taken by SBI for the facilitation of investors.
He showed keen interest by the Korean investors in the field of energy especially in coal fired power plants in Sindh.
Chairman SBI, Mohammad Zubair Motiwala, welcoming the delegation headed by Choongjoo Choi appreciated Korean Government's efforts in boosting business ties with Pakistan.
He said Korean Government has played pivotal role in uplifting entrepreneurship in Pakistan through direct and indirect investment, but the quantum is very less, which needs to be enhanced.
Mohammad Zubair Motiwala highlighted the areas where both the countries could help each other. Value Addition in the agriculture sector of Sindh is the area where Korean expertise will be highly appreciated.
Apart from agriculture, Korea has excelled in the field of Renewable Energy and Korean assistance under Economic Development Cooperation Fund (EDCF) can be utilized if Korean Government can invest in conversion of existing tubewells in to Solar Energized Pumps providing electricity to the off grid villages.
Conversion of SCARP tubewell pumps into solar pumps will at one end save huge amount of money government it is paying as a subsidy and on the other hand will shed huge load of energy consumption from the National Grid.
Chairman, SBI also reminded Choongjoo about the commitment of M/S KOSPO for establishing a Wind Farm in Sindh's Wind Corridor.
He emphasized that Wind Resource of Sindh is now well recognized as more than 30 local as well as international companies are already working and we are expecting first wind farm of 49.5 MWs to start operation from next month in Jhimphir, which will be followed by many more.
Ambassador Choo told Chairman SBI that agreement between Karachi and Inchion City of Korea is ready and can be signed any time when a delegation from Pakistan will plan to visit Korea.
Issues regarding insufficient electric supply to LOTTE was also discussed. Mohammad Zubair Motiwala assured the delegation that all possible support will be provided to Korean investors from the government end.
Ambassador shared that next year on the eve of 30 Anniversary of diplomatic relationships with Korea, he is planning to bring a high level business delegation to Pakistan, which would be of great importance to attract business and boost trade between two countries.
Copyright APP (Associated Press of Pakistan), 2012
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Korea ready to invest in energy sector

 

[Jango]

ADB to loan $433m Guddu, Jamshoro thermal plants to be run on coal

ISLAMABAD, Sept 7: The government has decided to convert two inefficient thermal power plants in Sindh Guddu and Jamshoro plants to coal with $433 million financing to be provided by the Asian Development Bank.

The conversion of the plants would allow the authorities to enhance their production by at least 700MW.

The major overhaul of and supply of spare parts to the Jamshoro and Guddu thermal power plants, besides recovery of lost capacity, is expected to reduce their generation cost from over Rs16 per unit to about Rs9 per unit, according to a power ministry official.

He said the plan now at the bidding stage was part of an overall ADB financing of over $1 billion under which the government intended to convert at least three major power plants, including Muzaffargarh, to imported coal in order to reduce heavy reliance on expensive furnace oil and to scale down average generation cost through improved fuel mix.

About 400MW capacity would be regained through the planned overhaul of and supply of equipment and spares to Jamshoro and Guddu plants while 200MW oil-based boilers of Jamshoro would be expanded and converted into a 400MW coalfired plant.

The government has already finalised loan agreements with the ADB. The project will also ensure coal and ash handling systems and modification of other auxiliary equipment.

According to the ADB, the conversion to sub-critical coalfired system is the least expensive method to diversify the fuel mix away from imported fuel oil.

The persistent energy short-age exceeding 5,000MW represents around 30 per cent of the total demand, making the life difficult of all Pakistanis as loadshedding in some cases goes beyond 10 hours a day in urban areas and almost 20 hours in rural areas.

The ADB says the manufacturing sector, especially smalland medium-sized enterprises that usually cannot afford back-up generators, have been hit the hardest while the Planning Commission estimates that losses caused by power and gas shortages reduced gross domestic product (GDP) growth by three per cent and four per cent in financial year 2011 and 2012.

The current energy crisis has been contributed largely by slower addition in domestic power generation capacity than demand, financial mismanagement leading to a chronic circular debt problem and management crisis.

The rehabilitation and expansion of Jamshoro power plant would also require acquisition of about 80 acres of additional land in the vicinity of the existing plant for ash pond.

The government plans to convert about 4,200MW of thermal power plants to coal under medium-term programme while maintaining a complete ban on new thermal power plants as electricity tariffs have gone beyond affordability limits for consumers.

Mismanagement, poor maintenance and substandard quality of fuel have been some of the key reasons for low capacity and inefficient generation, resulting in the malfunctioning of the Wapdarun power stations.

Apparently, resolution of problems at these power plants alone could significantly bridge the demand andsupply gap, which if synchronised with improvements in the distribution network, could further overcome power shortages.

Wapda has three major generation companies Jamshoro, Muzaffargarh and Guddu. All steam units of thermal power station at Jamshoro and Muzaffargarh are dual-fuel plants having gas and residual fuel oil (RFO) firing facilities except one Jamshoro unit which has only fuel oil-firing capability.

However, these plants are operating on furnace oil due to shortage of natural gas.

The thermal station at Guddu uses medium-calorific raw gas from Mari and Kandhkot.

Due to poor maintenance of the power stations, Gencos have lost nearly one-third of their capacity and nearly 17 per cent of their thermal efficiency due to plant degradation.

The average capacity degradation at Jamshoro has been found to be 32 per cent compared to a maximum degradation of 40 per cent and a minimum degradation of 23 per cent. The average drop in the net efficiency at this station was about 20 per cent from the designed capacity efficiency.

At Guddu, the average availability of units was in excess to 95 per cent but if this availability is corrected for lost output of the plant owing to degradation, the availability factor would drop by about 30 per cent, quite low by industry standards.

The thermal station at Muzaffargarh is operating with an overall capacity degradation of around 40 per cent. The power station faced an overall degradation of around 18 per cent in its net efficiency.
ADB to loan $433m Guddu, Jamshoro thermal plants to be run on coal | ePaper | DAWN.COM

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This should have been done sometime back, less dependence on oil, more on local coal.

PTI energy policy also lays stress on reducing oil imports for power generation.

 

[ajtr]

Bhasha dam, KCR project may be affected: Japan no longer considering investing: diplomat

WASIM IQBAL
ISLAMABAD: The government of Japan is no longer considering investment in major hydroelectric projects such as Diamer-Bhasha dam and revival of Karachi Circular Railway (KCR) because of financial constraints, a Japanese diplomat said on Friday.

The KCR project, costing Rs140.2 billion, was recently approved by the Executive Committee of National Economic Council (Ecnec).

An official of the embassy of Japan told media persons that these projects required huge funding and the government of Japan was not in a position to finance these projects. Responding to a question regarding Bhasha dam, he said that Japan was not interested in investing in the construction phase of the dam. “It may invest in the power generation phase in future, depending on the situation,” he added.

The official also said that Japan International Cooperation Agency (Jica) has held a comprehensive study regarding the viability of Karachi Circular Railway, but had not yet reached any final conclusion, because it “also requires huge funding”.

Pointing out inconsistencies in policies of Pakistani government, he said: “This takes Pakistan out of the scope of Japanese companies.”

He said Japanese firms working in Pakistan were facing a “lot of problems”

According to him, the Board of Investment (BOI), which should act as a facilitator for foreign investors, “has no action plan”.

The government of Japan, he said, had deputed a Japanese expert in the BOI who was working on capacity-building of staff so that they could attract foreign investment.

He said that companies were unable to benefit from Port Qasim as there “is no road network to access the port…absence of infrastructure is another reason”.

The embassy, he said, was receiving complaints from Japanese companies working in Pakistan regarding “absence of any appropriate auto policy, macroeconomic instability, power shortages and recent ban on CNG kits. This has deeper impact on the economic health of companies”.

Despite difficulties, he believed, there was a huge potential to attract foreign investment. “High-skill labour force and growing market is a favourable factor. Similarly, Pakistan has geographical advantage, as it is located on crossroads to India, Afghanistan, Central Asia and the Gulf.”

He said that the government of Japan will soon send business mission to visit Pakistan from October 6-11, to coincide with Expo Pakistan in Karachi.

“This Business Mission will include (representatives of) Japanese companies interested in investing in Pakistan. The objective is to address concerns of companies regarding security, infrastructure, economic policy consistency and lack of marketing.”

====================================================


Diamer-Bhasha Dam financing still on the table: ADB

ISLAMABAD: Asian Development Bank (ADB) has said the financing of Diamer-Bhasha Dam is still on the table and the Bank has not walked away from its commitment relating to the funding of the multi-billion dollar project.
Werner E Liepach, Country Director ADB claimed while talking to a select group of journalists that ADB is still there for financing the Diamer-Basha Dam, but the pace of the work is not on any fast track as desired by the government of Pakistan.
“Diamer-Basha Dam is no doubt a mega project of Pakistan and this big project requires a lot of money. So, ADB wants other financers including bilateral donors to finance the project as the Bank alone is unable to manage its entire financing,” Liepach added.
Diamer-Basha Dam is a project with an estimated cost of $ 12 billion and the dam has been designed to generate 4,500 megawatt electricity. The project was to be completed by 2017 but due to some critical financial problems ie, lack of interest by major financers both multilaterals as well as bilateral, the project is now expected to be delayed for another 3-4 years.
Dam will have a height of 272 meters spillway with fourteen (14) gates each 11.5 m x 16.24 m. The gross capacity of the reservoir will be 8,100,000 acre feet (10.0 km3), with a live storage capacity of 6,400,000 acre feet (7.9 km3). Two underground power houses are being proposed, one on each side of the main dam having six (6) turbines on each side with total installed capacity 4500 MW.
Reportedly, the ADB had committed $4.5 billion to $5 billion for construction of the project while the bank had also promised to cooperate with the government in raising the money from international capital markets to collect the entire financing for Diamer-Basha dam.
“It is totally wrong to say that the Bank will provide $ 4.5-5 billion for Dam to Pakistan. We can not alone arrange this much amount for a single project as we are providing financing to some other projects in Pakistan”, Liepach revealed.
“The image of ADB has not been put in positive light in some media reports regarding the financing of Diamer-Basha Dam as we are still having talks with the government on financial grounds,” Liepach added.
While replying to a question asked by this scribe, Liepach said, “The Bank is not ready to arrange more than $ 1-1.5 billion for Dam.”
“We have not asked for any ‘No Objection Certificate (NoC) from India for Diamer-Basha Dam. ADB has its own policy and guidelines for the countries who like to obtain the project financing and recipient countries are bound to follow such policy. So as per ADB policy, as the dam is being constructed in Gilgit-Baltistan and India considers that area a disputed territory, therefore, before going for the construction of Dam, it should be made clear that India has ‘no objection’ at all. We have never demanded of any ‘certificate; or any official statement from India in this regard. What we really want is just the satisfaction of both the sides,” Liepach explained.
It is reliably learnt that Pakistan has also been negotiating with multilaterals as well as the bilaterals for financial assistance to construct the dam but the donors are now offering funds for the 4,320-megawatt Dasu hydropower project.
While replying to a question that ADB has shown any interest in financing of Dasu hydropower project, Liepach said, “We have not been asked by the government of Pakistan to finance Dasu so far.”

 

[SHAMK9]

84 MW NEW BONG HYDROPOWER PROJECT, completion date Nov 2012

 

[ajtr]

Diamer Bhasha Dam: Russia wants to take up project without bidding

ISLAMABAD:
Russia is seeking direct award of a construction contract for the $13 billion Diamer Bhasha Dam in a government-to-government deal without resorting to international competitive bidding, sources say.
Faced with water and power shortages, Pakistan is looking for funds from China and Russia, who in turn want a government-to-government deal without international bidding.
The government’s search for funds came after multilateral donors asked Pakistan to get a no-objection certificate from India for the dam’s construction.
China and Russia want a similar arrangement for undertaking the Iran-Pakistan gas pipeline project, which has faced fierce opposition from the United States.
According to sources, Pakistan and Russia are likely to strike a final deal on the dam during visit of Russian President Vladimir Putin to Islamabad next month.
“A meeting of Pak-Russia inter-ministerial commission will be held before the visit of Russian president, which will work out a mechanism for financing mega projects,” a government official said.
In a meeting of the Inter-governmental Commission (IGC) held here on Monday, government officials gave a detailed briefing to the Russian team on planned energy projects. However, sources said, Russia made no firm commitment to the dam.
According to the official, it was just a preparatory meeting to discuss different projects, which could be tabled during deliberations with the Russian president.
In the IGC meeting, the Russian side was told that Bhasha Dam was a strategic project with power generation capacity of 4,500 megawatts to overcome the energy crisis. It will have water storage capacity of 8.5 million acre feet to feed the agricultural sector.
Chinese offer
The Chinese government has already offered Pakistan skilled labour for the construction of Bhasha Dam. China has 17,000 skilled workers, who have worked on the giant Three Gorges Dam, which is producing 30,000 megawatts of electricity.
On the other hand, multilateral donors have asked Pakistan to seek a no-objection certificate from India to pave the way for financing the dam, which they say is situated in a disputed territory. Instead, they have offered to finance another project – Dasu hydropower, but the government has rejected the plan and wants to complete Bhasha Dam first.
On Monday, a delegation of the World Bank, headed by Country Director Rachid Benmessaud, called on Federal Water and Power Minister Ahmed Mukhtar and once again offered to finance phase-I of the Dasu project.
Dasu hydropower project is situated 7 km upstream of Dasu village on Indus River and 350 km from Islamabad. The project is located in Kohistan district of Khyber-Pakhtunkhwa.

 

[ajtr]

Japan denies it made $4 bn offer for Bhasha dam

ISLAMABAD: It has now been confirmed that the Senate Committee on Water and Power was misinformed by the Economic Affairs Division (EAD) when it was told that Japan had agreed to provide $4 billion for the Bhasha dam as Japan International Cooperation Agency (JICA) has denied it officially.

The impression that Japan has taken the lead by agreeing to provide funds of $4 billion for machinery and equipments including turbines for the much touted Diamer-Bhahsa dam was given by EAD officials but a JICA spokesman told The News that Tokyo had not given such a nod to Pakistan. The controversy over Japan funding the Bhasha dam emerged when a senior EAD official informed the Senate Committee meeting that Japan had come forward and agreed to help install the electro-mechanical system of the dam which includes the 12 power turbines, each with a capacity of 375MW and to this effect it would provide $4 billion credit line.

Pakistan is facing the huge funding crisis for Diamer-Bhasha dam after ADB’s informal no to finance the project unless Pakistan arranges a credit line for the project from the Work Bank which has already linked its financing with a No Objection Certificate (NOC) from India

“We are only working for the replacement of 4 hydro generation units installed in Mangla dam and to this effect Japan would extend $200-250 million loan to Pakistan. With the replacement of the existing 4 units in Mangla dam, the hydro generation capacity of the dam would increase by 180 MW. However, as far as Diamer-Bhasha dam is concerned, we have not given any undertaking to provide funding for the machinery and equipment valuing $4 billion to be installed in the said dam,” the JICA spokesman said.

“The cost of the Bhasha project is so high and a country like Japan is not in a position to provide such a huge funding for machinery and equipment,” he said and added: “The scope of the civil works of the project is also vey large.” To a question if Japan is hesitant in taking part in a project in which China may be the part of the project, the JICA spokesman dispelled the impression saying that Japan took part in Ghazi Barotha hydropower project in which construction contract was given to a Chinese company. “So, Japan has no such issue.”

However, when contacted Joint Secretary Kazim Niaz who deals with Japan in the EAD said that Japan has shown keen interest in providing machinery and equipment for Diamer-Bhasha dam, but it has not said that it would provide $4 billion for machinery and equipment.

To a question, he said that in meeting of JICA head with the EAD secretary, Japan showed interest in providing machinery and equipment. However, the cost of full machinery and equipment stands at $4 billion.

In another alarming disclosure, the inordinate reluctance by ADB in releasing the loan has delayed the initiation of the project by 2-3 years owing to which the cost of the project has further escalated by $2.5 billion from the estimated cost of $11.178 billion worked out in 2009 to $13.684 billion. It is also pertinent to mention that Japan had also taken the lead among the Friends of Democratic Pakistan (FODP) by meeting the pledge of giving $1 billion to Pakistan.

The pledges from FoDP member countries amounting to $5.2 billion came up for Pakistan in donors moot held at Tokyo in April 2009. And Japan had fulfilled its promise by disbursing the $1 billion loan to Pakistan.

The official also disclosed that Ministry of Water and Power is going to move a summary either to ECC (Economic Coordination Committee) or Cabinet seeking a nod to formally ask China to complete the whole civil works of the dam portion, and tunnels leading to power houses.

The construction of the whole civil works will cost somewhere between $2.50-3.5 billion. However, the EAD officials in the Senate committee meeting held on Wednesday last took a diplomatic posture saying the ADB has not asked for NOC from India for its credit line for the project and termed the media reports baseless. “If it is the case then why is Wapda working to scuritise its assets to generate funding and looking towards China and Japan for more funding,” the sources in the Ministry of Water and Power argued. They said that ADB had softened its stance for Bhasha dam when it came to know that Pakistan had seriously made up its mind to handover the project to China. The EAD officials also told the Senate committee meeting that US had agreed to provide $200 million from the Kerry Lugar money.

The top EAD official said that $200 million is nothing for the huge project but it has a symbolic value and it will help persuade other IFIs (international financial institutions) to come up with the required credit lines for the project. It is to be noted that Washington had earlier promised but never extended the loan. Now the US is again reiterating the same thing.