Proposed Jamshoro deal: KE urges PPIB to speed up progress

ISLAMABAD: K-Electric (KE) has urged Private Power & Infrastructure Board (PPIB) to expedite progress on proposed mutually beneficial deal on development and power purchase from Jamshoro Coal Power Project (2x660 MW).

On Tuesday, PPIB and KE held a meeting of the Technical Committee, which reviewed the document submitted by KE and finalised on the basis of a study.

Chief Executive Officer KE, Syed Moonis Abdullah Alvi, in a letter to Managing Director, PPIB, Shah Jahan Mirza requested a meeting of the Technical Committee so that different aspects of findings of Preliminary Assessment Report should be discussed in detail.

The KE team had visited the projects site and submitted preliminary report on February 13, 2023 to the exalted members of the TC formulated by Ministry of Energy (Power Division).

The CEO KE apprised PPIB that the power utility company had completed its preliminary assessment and submitted the Report, suggesting options for the way forward with regards to the proposed transaction.

The Report encompasses the initial findings of the site visit of the 2 X 660 MW Jamshoro Coal Power Project. It covers the technical review, assessment of the key challenges, risk matrices with potential mitigants, broad contours of potential legal structures, responsibility matrix, indicative timelines, and suggested next steps for the proposed transaction.

The document is based upon the assessment conducted by KE’s team, legal counsel, and publicly available information.

According CEO KE, the power utility company reiterates that it requires base load power in its system by FY-2027; hence it is crucial that the assessment of the Proposed Transaction is promptly finalized. This will include the selection of suitable route for structuring the transaction under the legal frameworks presented in the Report, or any other viable option(s) evaluated by Government of Pakistan.

“KE requests utmost support from Power Division and GoP to make the proposed transaction workable, in an expeditious manner,” said the CEO KE.

To move beyond the initial assessment stage, KE has further noted to Managing Director PPIB that it is committed to create a mutually beneficial deal, which can help address the power needs of the citizens of Karachi, along with facilitating the GoP to bring in much needed efficiency to its public assets.

Official sources told Business Recorder that the meeting has held initial deliberations on assessment report and nothing is final as of now, adding that further meetings will be held between KE and PPIB.

Copyright Business Recorder, 2023