Rs 61.5bn coal mining, 300MW power plant project okayed

[ameer219]

Rs 61.5bn coal mining, 300MW power plant project okayed

KARACHI: The Sindh cabinet, which met on Monday under the chairmanship of Chief Minister Qaim Ali Shah, approved a joint-venture project worth Rs 61.5 billion with the Al Abbas Group for coal mining at Badin coal field along with a 300MW power generation plant.

Prior to the decision, a three-member cabinet sub-committee - comprising provincial ministers Sardar Ahmed, Murad Ali Shah and Adviser to Chief Minister Qaisar Bengali - presented their report on the feasibility of this joint venture.

Briefing the media later about the cabinet’s decision, Adviser to Chief Minister for Information Jamil Soomro said the project would be completed in 24 months with an estimated cost of Rs 18.45 billion on coal mining and Rs 43.05 billion on the power plant.

He said the cabinet had also reviewed the allocation of Rs 75 billion for the Annual Development Programme (ADP) of 2009-2010.

The Planning and Development adviser had briefed the cabinet on the ADP, he added.

He also said the cabinet would meet again on Tuesday (today) when the Finance Department would give a briefing.

The ADP of 2009-2010 has the record allocation as against the Rs 50 billion allocated for the ADP of 2008-09, he added.

Responding to a question, he said the coal mining and power plant project would be a joint venture between the Sindh government and a financial group - the Al-Abbas Group - with a 40:60 ratio.

The sub-committee said in its report that the work on the project would start soon, he added.

He further said after the Thar coal project, the biggest investment was coming in the Badin coal field.

He told the media that the agenda for the cabinet meeting remained incomplete because the chief minister had to leave for Quetta to attend to the National Finance Commission Award.

After Wednesday’s cabinet meeting, a detailed briefing would be given to the media, he added.

Sindh Secretary for Information Mumtaz Ali Shah, Director General Safdar Shah and Director Information Muhammad Iqbal were also present on the occasion. app

Daily Times - Leading News Resource of Pakistan

About time we started using our resources effectively!

 

[Hyde]

Great news!

I wonder we don't really have infrastructure yet to install 300MW plant. Like Dr Samar Mubarakmand said we are installing a 100MW of pilot project and need another 3 years to even think about installing bigger plant of 500MW - 1000MW.

Its 300MW and i don't think 24 months will be sufficient to install such a plant. It was more realistic if they were install such a project after 3 years.... Lets hope its true and finally we start utilizing our resources

So that means we may expect at least 400MW of energy from Coal within 2 years time and then we may install bigger plants in future

 

[shining eyes]

it has really been good to hear that the coal will be used for producing electricity i have heard that pak has the resources of MULTI TRILLION $ of COAL in balochistan which need to be extracted very soon!!
in hasb-e-hal show AFTAB IQBAL was discussing this matter and told that he fears that in future it will be very difficult to use the coal resources bcz 1. this increases environmental polution so immense international pressure will be there 2.alternatives will be there for using! 3 we very badly need power resources now!!!
so this is a very good step govt. should constuct then as faster as they can to fulfill the needs cz the situation bcz of power shortfall is is very bad........

 

[ice_man]

i don't mind about KICKBACKS!!! as long as this project is completed up & running! the problem is 10% is acceptable as long as it remains at 10%! KAAM TOU KAREIN YEH LOOG!SIRF KAHEIN NAHI in the long run Pakistan will benefit & people of sindh will!

 

[BATMAN]

Not so great news.
It is another example of deliberate mismanagment.
As i said it in past..... all coal power generation should be turned into sea water desalination plants and should be installed near shores.
Advantage being Baluchis will get plenty of water and electricity will by a byproduct.

I have no doubt both PPP and PML-N are getting damn rich at the cost of indebiting the future generations of Pakistan.

People of Pakistan should not forget that last govt. did not bought electricity from exisitng IPP's which use oil as fuel and remeber BB and Zardari got huge kickbacks in those projects... as well.
Point is that whole electricity shortage drama is engineered to send foreign currency abroad.

 

[Justin Joseph]

Rs 61.5bn coal mining, 300MW power plant project okayed

KARACHI: The Sindh cabinet, which met on Monday under the chairmanship of Chief Minister Qaim Ali Shah, approved a joint-venture project worth Rs 61.5 billion with the Al Abbas Group for coal mining at Badin coal field along with a 300MW power generation plant.

Prior to the decision, a three-member cabinet sub-committee - comprising provincial ministers Sardar Ahmed, Murad Ali Shah and Adviser to Chief Minister Qaisar Bengali - presented their report on the feasibility of this joint venture.

Briefing the media later about the cabinet’s decision, Adviser to Chief Minister for Information Jamil Soomro said the project would be completed in 24 months with an estimated cost of Rs 18.45 billion on coal mining and Rs 43.05 billion on the power plant.

He said the cabinet had also reviewed the allocation of Rs 75 billion for the Annual Development Programme (ADP) of 2009-2010.

The Planning and Development adviser had briefed the cabinet on the ADP, he added.

He also said the cabinet would meet again on Tuesday (today) when the Finance Department would give a briefing.

The ADP of 2009-2010 has the record allocation as against the Rs 50 billion allocated for the ADP of 2008-09, he added.

Responding to a question, he said the coal mining and power plant project would be a joint venture between the Sindh government and a financial group - the Al-Abbas Group - with a 40:60 ratio.

The sub-committee said in its report that the work on the project would start soon, he added.

He further said after the Thar coal project, the biggest investment was coming in the Badin coal field.

He told the media that the agenda for the cabinet meeting remained incomplete because the chief minister had to leave for Quetta to attend to the National Finance Commission Award.

After Wednesday’s cabinet meeting, a detailed briefing would be given to the media, he added.

Sindh Secretary for Information Mumtaz Ali Shah, Director General Safdar Shah and Director Information Muhammad Iqbal were also present on the occasion. app

Daily Times - Leading News Resource of Pakistan

About time we started using our resources effectively!

1. What is the cost of building coal based power plant in Pakistan per Mega Watt??

2.What will be the Electricity tariff??? That is rupees, per unit to the consumer??

 

[Hyde]

1. What is the cost of building coal based power plant in Pakistan per Mega Watt??

its very expensive for now due to lack of infrastracture and heavy machineries that are being imported.

You see this plant is for 61.5 billion rupees for 300MW only. But it will reduce the costs for other plants in future once this 300MW and 100MW plant is set up. We have several proposed projects of 1000MW each and as said by Dr Samar Mubarakmand after 3 years we will be able to install such mega plants in Thar also. Just wait for 3 years and all costs will start coming down

2.What will be the Electricity tariff??? That is rupees, per unit to the consumer??

For now its quite expensive around 8-9 cents per kw/hr i think (read last year for some coal projects and more detail about this project will be revealed soon) but when we have couple of more plants in future it will reduce the costs dramatically. We just started to untap our Coal reserves lets hope more production will decrease the overall costs soon

We are hearing such news since past 4 decades that the coal reserves will be utilized but it is the first time when something is actually happening there. Its just the beggining aage aage dekho hota hai kya

 

[Justin Joseph]

its very expensive for now due to lack of infrastracture and heavy machineries that are being imported.

You see this plant is for 61.5 billion rupees for 300MW only. But it will reduce the costs for other plants in future once this 300MW and 100MW plant is set up. We have several proposed projects of 1000MW each and as said by Dr Samar Mubarakmand after 3 years we will be able to install such mega plants in Thar also. Just wait for 3 years and all costs will start coming down



For now its quite expensive around 8-9 cents per kw/hr i think (read last year for some coal projects and more detail about this project will be revealed soon) but when we have couple of more plants in future it will reduce the costs dramatically. We just started to untap our Coal reserves lets hope more production will decrease the overall costs soon

We are hearing such news since past 4 decades that the coal reserves will be utilized but it is the first time when something is actually happening there. Its just the beggining aage aage dekho hota hai kya

1. As per the import part despite decades of experience of building power plants India also imports plants and machinery.

Because our target is an additional capacity of at least 100,000 MW by 2012.

2. The plant cost mentioned in the Pakistan is very high.

3. We builds 4000 MW plant at the cost of Rs. 15,000 crores.

4. The cost per unit comes to about Rs. 2 per unit.

5. You should fast track as many coal based power plants as possible because US has asked IMF and World bank not to finance coal based power plants. As they caused pollution. In the future it will be very tough to build a coal based power plant.

 

[Hyde]

1. As per the import part despite decades of experience of building power plants India also imports plants and machinery.

Because our target is an additional capacity of at least 100,000 MW by 2012.

2. The plant cost mentioned in the Pakistan is very high.

3. We builds 4000 MW plant at the cost of Rs. 15,000 crores.

4. The cost per unit comes to about Rs. 2 per unit.

5. You should fast track as many coal based power plants as possible because US has asked IMF and World bank not to finance coal based power plants. As they caused pollution. In the future it will be very tough to build a coal based power plant.

yeah you are right and hopefully we will have few Coal based power plants soon. There will be couple of 1000MW plants soon (hopefully 10,000 - 12,000MW in total) by 2030. There are lots of proposed projects that are awaiting for approval. I am very optimistic after 3 years we will see bigger plants in thar that will decrease the cost per unit to 3-4 times (near 2-3 cents per unit).

We have Bunji hydropower project of 7100MW which is expected to generate electricity at around 2 cents per unit (previous design of this project was supposed to generate 5450MW at 2.22 cents per unit so i am hoping similar or even cheaper electricity after the revised design).

 

[Justin Joseph]

yeah you are right and hopefully we will have few Coal based power plants soon. There will be couple of 1000MW plants soon (hopefully 10,000 - 12,000MW in total) by 2030. There are lots of proposed projects that are awaiting for approval. I am very optimistic after 3 years we will see bigger plants in thar that will decrease the cost per unit to 3-4 times (near 2-3 cents per unit).

We have Bunji hydropower project of 7100MW which is expected to generate electricity at around 2 cents per unit (previous design of this project was supposed to generate 5450MW at 2.22 cents per unit so i am hoping similar or even cheaper electricity after the revised design).

My point is start building as many as u can also as soon as u can.

As u have mentioned that "hopefully 10,000 - 12,000MW in total) by 2030"

It will be drop in ocean.

Because the current power demand in Pakistan is of around 15,000 Megawatt and supply is around 9,000 MW.

So the gap is of around 6000 MW.

If we take the rate of growth in demand about 10%, then by 2030 pakistan will need more than 15,000 MW present demand + 30,000 MW future demand total demand = 45,000 MW.

As per your own data Pakistan will have additional 12,000 MW capacity + 9000 MW current capacity total capacity by 2030 will be = 21,000 MW

45,000 MW - 21,000 MW = 24,000 MW will be the power deficit.

The above demand has calculated on minimum growth rate but as population grows and pakistan progresses the demand will be much more than that.

thanks

 

[Hyde]

My point is start building as many as u can also as soon as u can.

As u have mentioned that "hopefully 10,000 - 12,000MW in total) by 2030"

It will be drop in ocean.

Because the current power demand in Pakistan is of around 15,000 Megawatt and supply is around 9,000 MW.

So the gap is of around 6000 MW.

If we take the rate of growth in demand about 10%, then by 2030 pakistan will need more than 15,000 MW present demand + 30,000 MW future demand total demand = 45,000 MW.

As per your own data Pakistan will have additional 12,000 MW capacity + 9000 MW current capacity total capacity by 2030 will be = 21,000 MW

45,000 MW - 21,000 MW = 24,000 MW will be the power deficit.

The above demand has calculated on minimum growth rate but as population grows and pakistan progresses the demand will be much more than that.

thanks

did you forgot to include about 18,000MW of energy by hydropower projects and 4000 from Iran Pakistan gas pipeline and number of Wind power projects and Nuclear projects? the current power generation is not 9,000 it is around 12,000 and if the government wants they can pay the bills to the oil company and we will have generation capacity back to around 15,000 - 18,000MW in a matter of days.

 

[Justin Joseph]

did you forgot to include about 18,000MW of energy by hydropower projects and 4000 from Iran Pakistan gas pipeline and number of Wind power projects and Nuclear projects? the current power generation is not 9,000 it is around 12,000 and if the government wants they can pay the bills to the oil company and we will have generation capacity back to around 15,000 - 18,000MW in a matter of days.

sir,

what is this??

you don't know about you own country???

The current power generation capacity in pakistan = 9000 MW

Proof of my claim from Pakistani Newspapers with links and Pakistan Electric Power Company (PEPCO)

Pakistanis face power crisis on Pakistan Day

Power Crisis In Pakistan | PK on web

also, the projects you are mentioning are in air, nothing concrete.

 

[Justin Joseph]

There is no need to be jingoist, we are discussing a serious issue which will decide the fate of Pakistan. As the electricity is the most important thing for growth and development.

 

[jagjitnatt]

if the government wants they can pay the bills to the oil company and we will have generation capacity back to around 15,000 - 18,000MW in a matter of days.

but its not happening na?
there's a reason that its not happening. power generation can not be bumped up whenever one wants because that figure won't be sustainable.

The sustainable figure comes out to be somewhere around 9000-10000MW.

Also the power generation from pipeline is speculative. It will take time to lay down the pipeline, construct power plants and then things will be more concrete. There's a lot of time for that.

 

[Hyde]

sir,

what is this??

you don't know about you own country???

The current power generation capacity in pakistan = 9000 MW

Proof of my claim from Pakistani Newspapers with links and Pakistan Electric Power Company (PEPCO)

Pakistanis face power crisis on Pakistan Day

Power Crisis In Pakistan | PK on web

also, the projects you are mentioning are in air, nothing concrete.

I believe the Journalist forgot to add the total electricity of KESC. I notice errors in our newspapers very often. Please have a look at this. (credit goes to sparklingway)