Delay in import of spare parts: Haveli Bahadur Shah power plant faces closure

ISLAMABAD: National Power Parks Management Company (Pvt) Ltd (NPPMCL) has cautioned the Private Power & Infrastructure Board (PPIB) that its 1230-MW RLNG-fired Haveli Bahadur Shah power plant will stop operation if State Bank of Pakistan (SBP) does not approve its four transactions to import equipment/ spares.

Chief Executive Officer (CEO) NPPMCL, Akram Kamal in a letter to Managing Director PPIB Shah Jahan Mirza shared the situation of RLNG power plants.

NPPMCL is owned by the Government of Pakistan and it owns and operates two power plants namely 1230-MW CCPP Haveli Bahadur Shah (HBS), Jhang and 1223-MW CCPP Balloki, Kasur under the Power Policy 2015.

For smooth and continuous operation of power plants to ensure supply of electric power to the national grid, maintenance activities during scheduled and unscheduled outages are required to be performed in a timely manner for which availability of requisite spares/ parts and consumables is essential.

Import of spare parts, consumable items: NPPMCL seeks PPIB’s help for LCs opening

On May 20, 2022, SBP through its EPD Circular Letter No. 09 of 2022, instructed banks (i.e., authorized dealers) to seek prior permission from SBP’s Foreign Exchange Operations Department (FEOD) before initiating transactions for import of machinery and parts for 25 specific HS Codes under customs tariff, which also pertain to power generating machinery. Later, in continuation of the circular, SBP vide its EPD circular 1 of2022 of July 05, 2022 expanded the scope of restricted items by including all HS Codes falling under Chapter 84 and 85 of customs tariff.

NPPMCL, in its letter, further stated that O&M Contractor of 1230-MW CCPP Haveli Bahadur Shah (HBS), Jhang namely M/s SEPCO-III Electric Power Construction Corporation, China (SEPCO-III) initiated four transactions for import of equipment/ spares/ consumables for which applications for seeking prior permission of SBP were submitted through their bank/ authorized dealer to be the SBP in line with the circular.

However, none of these applications has so far been approved by SBP. The delay in approval will impact the availability and operation of power plant. If SBP approval is not granted on most urgent basis, 1230-MW Haveli Bahadur Shah, Jhang will not be in a position to operate and remain available which will result in shortfall of generation for the national grid and wide-spread power outages.

Copyright Business Recorder, 2022