62 percent loss in Muzafargarh powerhouse capacity: mismanagement, incompetence main reasons, says minister

The Ministry of Water and Power has acknowledged that mismanagement and incompetence are main reasons behind the 62 percent reduction in generation capacity - from 1350 mw to 835 mw - of thermal power station Muzafargarh. Official sources told Business Recorder that the government has prepared rehabilitation plan of thermal power station Muzafargarh at a cost of 1.584 billion with foreign exchange component (FEC) of Rs 1.291 billion.
USAID has agreed to provide assistance. After rehabilitation, the price of power to be generated from the power plant will be Rs 11.393 per unit. The main objective of the project is to regain the lost capacity of units 1-6 of thermal power station at Muzaffargarh. The plant design capacity was 1350 mw, which has been de-rated to 1130 mw and further reduced to 835 mw due to governance issues. The gain in capacity is estimated at 460 mw--295 mw by maintenance and 165 mw by rehabilitation. The project will be financed through USAID program.
The Ecnec was informed that the CDWP in its meeting held on April 7, 2011 considered and recommended the project for approval of Ecnec, subject to the condition that the sponsors would undertake cost-effective analysis for use of furnace oil (380 cst) along with possibility to use coal as second/alternative fuel for power generation.
In compliance with the CDWP decision, the sponsors submitted the compliance report, stating that the plant has no provision to utilitise coal as alternative fuel, and furnace oil (380 cst), as the project was purely designed for furnace oil (180 cst). Other major and on-going and potential projects in the sector are as follows: (i) rehabilitation of Jabban hydroelectric (revised); (ii) rehabilitation of thermal power station Jamshoro (JPCL), Genco-I; and (iii) rehabilitation of thermal power station Guddu (CPGL), Genco-II.
Sources said that the existing power generation capacity is not sufficient to meet the ever-increasing demand of the country. To cope with this growth and demand, additional capacity would be required annually. According to sources, a strategy has been developed to meet the growing demand for power by exploitation of indigenous resources ie hydro, independent power projects (IPPs), alternative energy and nuclear (through indigenisation of nuclear power technology.
Rehabilitation of existing power plants is the dire need of the system to bridge the gap to some extent between demand and supply and reduce the generation cost per kWh. Sources said that the Minister for Water and Power, Naveed Qamar who has recently returned from China, has informed the Prime Minister that his talks with Chinese companies were successful. He also said that Chinese companies are interested in Thar coal project for which Finance Ministry approved Rs 900 million subsequent to the involvement of President House.