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Sindh updates

49.5 MW Tenaga Generasi Wind Power Project, Gharo, Thatta, Sindh
Completed in Sept, 2016


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Karachi Thatta Dual Carriageway (KTDC) under Construction
BOT Project, consisting of 48.5 Km road (dual carriageway) to be executed in 3 Sections at both bounds. Road will stretch the areas of Gagir, Dabejhi, Garho, Sultanabad, Gujj & Makli and will reduce the distance / travelling & also provide agri market access to far off parts of the area.
Project is recently started & expected to be completed in 2017

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PPIB gives go-ahead for Hubco’s 330MW project


KARACHI: The Private Power and Infrastructure Board (PPIB) has given a green signal to Hub Power Company Limited (Hubco) to go ahead with its plan to set up a 330-megawatt coal-fired power plant in Thar, Sindh.

“PPIB has issued Letter of Support (LOS) dated December 9, 2016 to Thar Energy Limited (TEL), a wholly owned subsidiary of the Hub Power Company Limited, for developing a 330-megawatt Mine Mouth Power Project at Thar,” Hubco Company Secretary Shamsul Islam said in a notification to the Pakistan Stock Exchange on Tuesday.

“TEL would have to achieve financial close [arrange financing] for the project within nine months,” he added in the notification.

Earlier, the company had estimated the cost of the power project at $550 million.

The development took the company’s share price up 2.20% as the KSE-100 Index closed at a record high. Hubco’s share increased Rs2.50 and closed at Rs116.08 with a volume of 3.1 million shares.

PPIB facilitates investors in establishing private power projects and related infrastructure, executes Implementation Agreement (IA) with project sponsors and issues sovereign guarantees on behalf of the government of Pakistan.

The issuance of the Letter of Support, which is part of regulatory approvals, would help the company find suitable financiers smoothly. The financiers may be including foreign players.

The power project is estimated to start commercial operations in around three and a half years after achieving financial close.

Hubco would take supply of coal from Sindh Engro Coal Mining Company (SECMC), as the power company has stakes in the mining project. The Hub Power Company has injected $20-million equity in the SECMC mining project.

SECMC is estimated to mine 3.8 million tons of coal per annum at around the time when the 330-megawatt power project is to start commercial production

In addition to this, the power company is also setting up two 660-megawatt imported coal-based power plants worth $1.8 billion in Hub, Balochistan.

The project is being developed by China Power Hub Generation Company (CPHGC) – a joint venture between Hub Power Holdings Limited and China Power International (Pakistan) Investment Limited – a Hong Kong-based company established by China Power International Holdings Limited. Hubco has a 26% stake in the CPHGC project. It has the right to increase its equity to 49% by the commercial operations date.

CPHGC has accepted the upfront tariff announced by Nepra for the coal-based power project.
 
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KCR, Keti Bunder port projects included in CPEC

ISLAMABAD: The government has decided to include Karachi Circular Railway (KCR) and Keti Bunder port projects in the ChinaPakistan Economic Corridor (CPEC).

The decision was taken at a meeting on CPEC and power generation projects presided over by Prime Minister Nawaz Sharif at PM Office on Monday.

The government also vowed to overcome loadshedding by 2018 and increase the country`s total power production up to 30,000MW by 2022.

According to the prime minister`s spokesman, the meeting reviewed progress in different projects under the CPEC and the benchmarks set for numerous energy, transport infrastructure and industrial projects with particular focus on socioeconomic development of Gwadar.

The prime minister was briefed on the tentative agenda items for the upcoming meeting of the ChinaPakistan Joint Cooperation Committee (JCC). About the procedure for inclusion of a project in the CPEC, the meeting was informed that approval of any decision by the working group concerned was imperative before its final approval by the JCC.

`The prime minister directed that Karachi Circular Railway and Keti Bunder port projects must be taken up at the next JCC meeting for inclusion in CPEC, as conveyed by the Sindh government,` the spokesman said.

The prime minister directed Minister for Planning andDevelopment Ahsan Iqbal to consult the chief ministers for finalisation of sites in the provinces for establishment of economic zones along the CPEC.

Mr Sharif was quoted as saying: `Industrial zones would be set up at places that have economic feasibility and viability for maximum economic returns and benefits for both China and Pakistan.

He directed the formation of a committee to suggest and advise the Chinese government about economic practicability and benefit of economic zones` sites.
 
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CM Leaves For China To Include KCR, Keti Bandar, Economic Zone Projects In CPEC

Sindh Chief Minister Syed Murad Ali Shah along with three cabinet members and senior officers had left for China to attend CPEC related meetings.

According to a statement on Tuesday, the Chief Minister just after attending the death anniversary of Shaheed Benazir Bhutto at Garhi Khuda Bux retunred by a special flight and left for China to attend CPEC related Joint Committee for Cooperation (JCC).

He was accompanied by provincial ministers Manzoor Wassan, Jam Khan Shoro, Syed Nasir Shah and ACS (Dev) M.Waseem, Secretary Energy Agah Wasif, Secretary Transpor Taha Farooqi, Chairperson Board of Investment Naheed Memon and others.

Murad will give presentation to JCC to include three important projects in China-Pakistan Economic Corridor (CPEC) Keti Bandar power park and special jetty, Karachi Circular Railway and Special Economic Zone at Dhabeji.

It may be noted that with the serious efforts of the Chief Minister, the federal government has already approved inclusion of Keti Bandar and Karachi Circular Railways in CPEC while Chinese authorities have also shown interest in KCR.

The Chief Minister has said that he will present this case seriously in JCC meeting and hopefully all the three projects will be approved. “I am sure I will return with good news for the people of Karachi but rather to say for the people of province and the country,” he hoped.
 
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Murad's case for KCR

Sindh CM Murad Shah made a case for Karachi Circular Railways at the meeting, saying that the provincial capital is one of the most populated cities in the world, with an estimated population of around 25.1 million people in 2016 ─ a number greater than Tokyo, Guangzhou, Seoul, Delhi, Mumbai, Mexico City, New York, Sao Paulo, Manila and Jakarta.

Karachi's population estimated to touch 34.3m by 2030: Murad Shah
The population of the city will touch 34.3m by 2030, he said. "Therefore, there are ample returns on investment if made in the city."

Why Murad Shah thinks there is a need for KCR:

  • Daily ridership on KCR of 700,000 passengers per day
  • 3.9m registered vehicles in Karachi
  • 24m trips generated daily
  • 6,457 buses run 192 routes
  • 2,715 contract carriages operating in Karachi
  • 85pc buses over two-years-old, inefficient fuel consumption and poor service
  • 47.3pc of all vehicles are motorcycles, 36.5pc private vehicles, 4.5pc public transport, 1.7pc contract carriages and 9.9pc para transit
  • 42pc of passengers use public transport, 21pc private cars, 19pc motorcycles, 10pc contract carriages and 8pc para-transit
Shah pointed out that the burden of about 42pc of passengers fell on public transport, whereas private vehicles catered to only 21pc of commuters.

He said the solution of the problem lies in an effective mass transit system which includes the revival of the KCR, the Bus Rapid Transit System, and the Light Rail Transit.

The KCR was first commissioned in 1964 and remained an effective transportation system until 1984, he said. Due to certain reasons such as increased running time and lack of investment reduced its operational efficiency, he added. As a result, ridership fell and finally caused its closure in 1999.

The KCR project has been approved by the Executive Committee of the National Economic Council (Ecnec), the Sindh CM said.

A feasibility study was carried out along with third-party validation of the study, he said. An Environmental Impact Assessment has also been conducted and a relocation of utility services is not required, he said.

K-Electric has assured uninterrupted power supply for the project, he assured investors, and federal and provincial taxes are exempt on the project.

Integration with BRTS lines has been made and the institutional framework in the shape of the Karachi Urban Transport Company (KUTC) is available, he said.

The Japanese have estimated the cost of the KCR at about $2.6bn and developed the investment structure as 85pc debt financing and 15pc equity financing by the provincial and federal governments, he said.

The Internal Rate of Return is estimated at 13.8pc, he said, and the economic benefits include reduced vehicle operation cost and travel time cost.

He invited investors to contribute in the equity of KCR along with federal government and Sindh government. He added that equity IRR compatible with infrastructure projects currently being developed in Pakistan would be offered to the investors.

Shah sought Chinese cooperation to include the project in the CPEC after Prime Minister Nawaz Sharif approved its inclusion in the initiative and provided a sovereign guarantee.

The JCC decided to include the project and asked the Sindh government to present its feasibility within the next three months, upon which Shah directed the Transport Minister Syed Nasir Shah to expedite work on the feasibility of the projects within the stipulated time.

Murad's plan for Keti Bandar

Shah told the JCC meeting that the Keti Bandar project is ideally located to serve as a power park for the Thar coal project due to its proximity to the coal field as well as Karachi.

Why Murad thinks Keti Bandar would be an ideal power park:

  • Located 160km from Karachi, connected by metallic road
  • Easy road connectivity with Karachi-Lahore motorway
  • Fewer environmental effects due to sparse population
  • 5m population in area to benefit
  • Availability of skilled and semi-skilled work force
  • Availability of cooling water and fuel (coal)
  • Vast area available for power park, other uses
  • New jetty will enhance capability to export coal with potential for development as a full port
The Sindh CM said the Thar coalfield has been declared as a Special Economic Zone, and projects supporting it receive multiple economic benefits.

Disclosing his strategic plan, the chief minister told the meeting that with the construction of new jetty it would be possible to exploit the full potential of Thar's coal reserves, minimise cost of electricity production at Thar coal and enhance the country's competitiveness by providing affordable electricity.

Murad Shah claimed the power park would have 10,000 megawatt power production capacity and a transmission line would connect Keti Bandar to the Jamshoro and Matiari grids.

A 235-kilometer-long railway line from Islamkot to Keti Bandar would be laid to transport coal, he said, adding that a 190-km-long road would be constructed to connect Keti Bandar with Nooriabad.

Shah said a comprehensive bankable study of the coal reserves is being conducted and the master plan will cover all auxiliary infrastructure.

He requested the JCC to approve the project in principle as discussed in the Transport Infrastructure Joint Working Group in November 2016 and vowed to present a detailed bankable feasibility report in the next working group meeting.

The JCC included the Keti Bandar Power Park and sea port project in CPEC and decided to conduct a feasibility study.

Every province to get an SEZ

The Sindh CM said the Special Economic Zone Authority Sindh proposes the creation of Dhabeji and Keti Bandar SEZs in Thatta.

Dhabeji stretches over 1,000 acres and is located about 55km from Karachi at the eastern alignment of CPEC (N-5) or the M-9, Shah said, adding that it has commercial viability and development potential in the immediate term.

Keti Bandar's SEZ, he said, stretches over 3,000 acres and is 153km from Karachi. The industrial potential will be realised after construction of a port, he said, which he proposed should be part of the medium-term plan.

Murad told the JCC meeting that a soil investigation has been conducted on both proposed SEZs and a commercial feasibility and master plan will be compiled shortly.

The JCC decided to give an SEZ to every province, including Sindh, which would have the Dhabeji SEZ.

Sindh Minister for Industries Manzoor Wassan urged the JCC to include the Khairpur Special Economic but it was decided that only one zone would go to Sindh.

The JCC asked Sindh government to work out a detailed plan and feasibility of the project to formally approve it.
 
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CM Sindh Witnesses MoUs On Thar, Smart City

Sindh Chief Minister Syed Murad Ali spent busy day and after extensive negotiations and talks signed some important MoUs which included with Citic Environtech ltd (CELL), DWG, CSIC and China Railway Construction Corporation in Beijing.

He also held important meetings there, said a statement issued here on Friday. The MoU signed between Sindh government and CEL regarding use of its advanced technology, design engineering and strong financing to install two 260 MGD and 130 MGD water treatment plants.

The purpose of the planning is to meet future water requirements of Karachi for next 50 years. The MoU also says that CEL would also invest, construct and operate two water supply treatment Plants, each one of 90,000 MGD and 180,000 MGD at Thar Coalfield, Block-2, so as to process and provide domestic water to nearby power plants.

The other MoU was signed between DWG, China Shipbuilding Industry Corporation (CSIC) and Sindh government. The MoU calls for using the advanced technology, engineering
expertise, rich project management experience and financial strength to cooperate with Sindh Board of Investment in the field of Photovoltaic, wind power, garbage power generation, biomass power generation, hydropower, upgrading of old power plants, power grid constructions and smart city.

There would be an investment of around $2 billion in the sectors identified in the MoU.
The third MoU was signed between the Sindh government and China Railway Construction Corporation (International) Ltd. The CRCC would provide its expertise and technical support to revive Karachi Circular Railways.

The fourth MoU was signed between Sindh government and China Machinery Engineering Corporation. Under the MoU the parties agreed to set up indigenous coal-based fire power plant with total gross capacity of 10,000 MW (in phases) and to complete related railways, highway, coal and general purpose jetties, transmission lines and infrastructure development at Keti Bandar.

Chairperson Sindh Board of Investment (SBoI) Ms Naheed Memon signed all the MOUs on behalf of the Sindh government while from the Chinese side the MoUs were signed by their concerned officers.
 
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Chief Minister Sindh, Syed Murad Ali Shah visited newly established Bahria Model School of Pakistan Navy at Khalid SRE near Younis Abad,

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Jetty work for coal loading........................



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Port Qasim Coal Power Plant

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