ISLAMABAD: K-Electric (KE) has proposed execution of a Non-Disclosure Agreement (NDA) with Jamshoro Power Company Limited (JPCL) for sanctity of data about conversion of JPCL’s unit of 600-MW on Thar coal, well informed sources told Business Recorder.

KE, sources said, has sent its proposal of NDA to Secretary Power in continuation of its earlier letter requesting the timely approval of KE’s IGP of January 31, 2024 and the recent meeting of the Ministry of Energy (Power Division’s) Committee formulated for the due diligence of KE’s IGP convened on April 1, 2024.

During the meeting, source said, it was decided by the Additional Secretary-1 Power Division that in order to formally facilitate KE, access to the complete project data of Jamshoro coal power project should be provided as it is essential for KE’s internal assessment to be carried out by the relevant stakeholders involved in the transaction, including but not limited to the prospective lenders and the other entities.

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In light of Additional Secretary’s formal advice for data provision, KE has suggested that the execution of Non-Disclosure Agreement between Jamshoro Power Company Limited (JPCL) and KE should be carried out, to ensure the sanctity of information required to be shared.

Moreover, KE has further reiterated the fact that it has been tirelessly working on the carrying out of the requisite efforts, required for the development and conversion of Jamshoro unit-01 to 100% local coal, and several activities have been carried out, ever since the approval of the report on KE’s IGP by the committee constituted by MOEPD in November 2023.

KE has also shared details of the activities carried out by it with regards to the implementation of the IGP, saying that the document serves as a testament of company’s steadfast commitment for making available inexpensive energy to the residents of Karachi, and thereby reducing the subsidy burden on Government of Pakistan.

Last year, K-Electric submitted a business case of conversion of unit-1 of Jamshoro Power Company Limited (JPCL) to 100 percent on Thar-coal, with an estimated economic benefit of $2.254 billion to national economy and affordable power to the regulated consumers of Karachi.

KE, in its business case for conversion of unit-01 of the project to 100% local Thar coal, had claimed that the idea is in continuation to earlier discussions during the meeting on June 03, 2023, in which a concept paper was submitted by KE, for its interest in procuring power from Unit-01.

KE top brass also held meetings with the key officials of Power Division and its attached entities wherein it had been decided that a business case would be developed by KE to depict the benefits of Unit-1’s conversion to local coal, not just with regards to the viability of this opportunity, but its overall impact on the economic prosperity of Pakistan.

While developing the business case, KE had also solicited inputs from relevant stakeholders including CPPA-G, PPIB, NTDC, the existing Engineering Procurement Construction (EPC) contractor; i.e., Harbin Engineering International (HEI) and Thar coal supplier.

Copyright Business Recorder, 2024

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