Conversion of JPP to Thar coal: Experts’ panel formed to firm up recommendations
ISLAMABAD: Prime Minister Shehbaz Sharif has constituted a three-member committee to discuss and firm up recommendations on conversion of Jamshoro Power Plant (JPP) on Thar coal, well-informed sources told Business Recorder.
The Committee comprising Minister for Power, Sardar Awais Khan Leghari, Minister of State for Finance, Ali Pervaiz Malik and Special Assistant to the Prime Minister on Power, Muhammad Ali, is allowed to opt any additional member as per requirements, with the following Terms of Reference (ToRs):
(i) to deliberate on earlier directive regarding conversion of Jamshoro Power Plant to Thar coal and subsequent developments, including expected Commercial Operation Date (COD) of the project as per the schedule;
(ii) to firm up and communicate a clear view on way forward regarding Power Purchase Agreement (PPA) between JPP and Central Power Purchasing Agency-Guaranteed (CPPA-G) or K-Electric; and
(iii) any other ancillary issue.
In July 2024, K-Electric had 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.
The power utility company had also cited the reference of a letter from the EPC contractor of the project, of July 9, 2024, wherein, M/s Harbin Electric International (HEI) had submitted a detailed proposal for the conversion of the project to utilise 100 per cent Thar coal.
In this regard, K-Electric Limited had highlighted that the said proposal affirms the technical viability for conversion of the project to 100 per cent Thar coal.
KE’s Chief Strategy Officer Shahab Qader Khan had 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.
The Asian Development Bank had 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 had 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 progress achieved till December 31, 2024.
Copyright Business Recorder, 2024
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