KE wants evaluation of proposal to convert Jamshoro plant to Thar coal

ISLAMABAD: K-Electric (KE) has asked the Power Division to constitute Project Steering Committee (PSC) to scrutinise the proposal of EPC contractor on conversion of 660-MW Jamshoro coal power plant on local coal.

In a letter to Secretary Power, KE has cited the reference of a letter from the EPC contractor of the project, of July 9, 2024, wherein, M/s Harbin Electric International (HEI) has submitted a detailed proposal for the conversion of the project to utilise 100 per cent Thar coal.

In this regard, K-Electric Limited has highlighted that the said proposal affirms the technical viability for conversion of the project to 100 per cent Thar coal.

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Accordingly, the conversion of the project can not only play an instrumental role in the realisation of Government of Pakistan’s strategic objective of indigenisation of fuel outlined in the National Electricity Plan 2023 but will also become a benchmark for conversion of other imported coal power projects in Pakistan.

KE’s Chief Strategy Officer Shahab Qader Khan has drawn the attention of Secretary Power toward Activity Matrix for conversion of JPCL Unit-1 on the “Report on KE Indicative Generation Plan” by the committee constituted by Power Division, which was finalised in November 2023.

According to him, this Activity Matrix envisages the formulation and notification of a Project Steering Committee by the Power Division composed of relevant stakeholders including, Power Division, KE and JPCL which shall be mandated to oversee the conversion of the project.

Accordingly, KE is of the view that in the light of this proposal from HEI, the PSC should be proactively constituted to evaluate the proposal of M/s HEI for the timely conversion of the project to 100 per cent local coal.

The sources said Finance Division is also in contact with the financial institutions to extend financing for conversion of imported coal power projects to 100 per cent on Thar coal.

The prime minister has also directed the Finance Division to engage with financial institutions to review and revise their current policy of not financing coal projects.

The Asian Development Bank (ADB) has also given the deadline of August 15, 2024, for signing of Power Purchase Agreement (PPA) among K-Electric, Jamshoro Coal Power Limited (JCPL) and GENCO Holding Company Ltd (GHCL) on 660-MW coal-fired power plant.

The ADB Mission made it clear to JPCL management and the project team that the latest loan extension till December 31, 2024 is the final extension, therefore, it is imperative that the plant is commissioned within the loan period enabling ADB to disburse the 20 per cent payments ($ 110 million) due against the contractual milestones- JPCL was further informed that the winding up period for the loan from January 2025 till April 2025 will be available to process disbursements against the progress achieved till December 31, 2024.

Copyright Business Recorder, 2024