2200 Megawatts Addition To National Grid: Government Unlikely To Meet Promise By April 2009
Monday, July 14, 2008 at 10:35 am Under Bollywood, Business News
ISLAMABAD :The government is unlikely to meet its promise regarding the addition of 2200 MW to the transmission system by April 2009 in an effort to meet the energy crisis. This promise was repeatedly made by Prime Minister Syed Yousuf Raza Gilani and the water and power minister on the floor of the National Assembly.
Official documents obtained from PPIB reveal that some of the thermal power projects were behind schedule. “The target of 2200 MW programme runs the risk of delay due to several reasons,” PPIB acknowledged in documents made available exclusively to Business Recorder.
According to these documents, a meeting was held on March 27 in the Prime Minister Secretariat with the Principal Secretary in the chair in which certain important decisions were taken targeted to ease the power shortage, including setting up thermal powers plants in the public and private sectors by April 2009.
The meeting also decided that the water and power secretary would be the focal person for co-ordination and resolution of problems related to the effective implementation of the decisions taken in the meeting. The government had assigned the PPIB to manage the awarding of projects of 615 MW capacity to the private sector.
The projects were Balloki (Orient) Power projects (simple cycle operation) with the capacity of 150 MW whose commissioning target was July 2008, followed by 150 MW Attock General Power Project by October 2008, 225 MW Atlas Power project by March 2009 and Balloki (Orient) Power project - combined cycle operation with 75MW capacity.
The PPIB has claimed that 225 MW combined cycle power project by Orient Power Company Limited (OPCL) had successfully signed all project-related agreements and achieved financial close. The ground-breaking of the project was held on November 29, 2005. Construction activities are underway, but some equipment is yet to arrive.
Following Prime Minister’s decision, the PPIB had advised the sponsors of OPCL and Pepco to commission simple cycle phase 150 MW of the project by July 2008, but the parties have not yet signed the tolling agreement.
Another issue, which is delaying the project, is the non-availability of gas. OPCL was allocated 38 mmcfd from SNGPL on a 9 month basis up to 2011 based on a gas quota allocated to PPIB. The petroleum ministry was requested to ensure gas supply of 38 mmcfd to OPCL through SNGPL to start operation of the plant in simple cycle mode by July 2008.
The ministry conveyed its reservations on requisite gas supply for operation of the plant in simple cycle mode. In response, the PPIB clarified that its intent was not to provide gas for simple cycle operation of the OPCL’s power plant by diverting gas from any of the existing power plants like Kapco; moreover, such arrangements would not result in any “capacity addition”.
Further, the petroleum ministry was once again requested to arrange gas supply of 38 mmcfd to OPCL power project from gas quota of SNGPL placed at PPIB’s disposal, without curtailing gas supply from any other power plant including Kapco.
The PPIB has clarified that timely provision of gas is imperative to start operation of the plant in simple cycle mode. However, the ministry has not yet responded to PPIB. Pepco recently informed the PPIB that simple cycle mode of OPCL project will only be possible (by end of August 2008) if timely supply of gas is made available to OPCL.
Regarding Attock General Power Project, the PPIB has clarified that the project has encountered hindrances in movement of engines since May 2008. The PPIB is in co-ordination with all the departments concerned to ensure smooth movement of engines. Due to its efforts, 3 out of 9 engines have reached the AGL project site since June 28, 2008.
Wartsila, the EPC contractor of AGL has lately communicated that the diversion made to Dhoc Pattan Bridge on Sawan River has been washed away due to recent rains and flooding, and consequently, six engines are stuck at Dhoc Pattan Bridge since June 12, 2008.
It has also been communicated that owing to the large volume of water flow and expected heavy monsoon rains, the re-construction of the diversion may take several months. Accordingly, Wartsila/AGL has sought permission from the Punjab government that they be allowed to use the new bridge of Dhoc Pattan with an undertaking for the repair costs against partial or whole damage caused to the bridge.
The PPIB has written a letter to the Punjab chief secretary that Warstila/AGL proposal may be considered favourably so as to amicably settle the issue. The PPIB is of the view that any delay in delivery of the engines may delay in the AGL Project commissioning, thus hampering the government efforts. The Atlas (Shirazi) Power Project is expected to be commissioned within schedule ie March 2009.
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