Rs 2.33 billion Uch-II transmission line project: Power Ministry fails to get clean chit from Ecnec

The Ministry of Water and Power has reportedly failed to get a clean chit from the Executive Committee of National Economic Council (Ecnec) for Rs 2.33 billion ''transmission interconnection of dispersal of power from Uch-II power project'', until China Development Bank unveils loan''s terms and conditions, sources in Finance Ministry told Business Recorder.
The Ministry of Water and Power informed Ecnec that the objective of the project is disposal of power available after commissioning of 395 mw Uch-II power plant by construction of 126 kilometer long 220 kv double-circuit transmission line.
The scope of work is as follows: (i) construction of a 220 kv double-circuit transmission line, about 125 km long, on twin bundled rail conductor from Uch-II power plant to Sibbi; (ii) construction of a 220 kv double-circuit transmission line, about 0.5 km long, on twin bundled rail conductor, for looping in/out of existing Uch-I power plant-Shikarpur New 220 kv single-circuit transmission line at Uch-II power plant; and (iii) reconductoring of 220 kv line section, approximately one km long, between Uch-I and Uch-II power plant from single rail to twin bundle rail conductor. The operational cost of the project is estimated at Rs 0.121 per kwh.
Official documents say that Ecnec was further informed that the CDWP, in its meeting held on April 7, 2011, had considered the project and recommended it for Ecnec''s approval, subject to the condition that the sponsors will provide due justification for the project with respect to security of proposed transmission line.
It was observed that the terms and conditions of the proposed loan equivalent to Pak Rs 1.8 billion from the China Development Bank had not yet been finalised. It was feared that in case the project was approved without first finalising the loan terms and conditions, the possibility of cost escalation cannot be over-ruled.
It was explained that the project may be approved subject to the condition that it would be re-submitted to Ecnec after finalising the terms and conditions of the loan with the China Development Bank. After detailed discussion, the Ecnec approved the project at a total cost of Rs 2.33 billion including foreign exchange component of Rs 1.197 billion.
Besides China Development Bank, Asian Development Bank (ADB) is extending $220 million of tranche-II under ADB-MTFF (multi-tranche financing facility) for the project to be completed in two years. The committee also directed the Ministry of Water and Power to update progress pertaining to loan agreement and submit it to Cabinet Secretary on regular basis.
Keeping in view the present load shedding position and increasing power demand in future, immediate requirement established is to enhance the capacity of NTDC transmission system for power evacuation. The proposed scheme has therefore been prepared to meet the requirement which will result in overall power system efficiency and reliability and deliver adequate and quality power to consumers.
Other major ongoing potential projects in the sector are as follows: (i) 220 kv Chashma -Ludewala/ D/C T/Line; (ii) 220 kv sub station at Kassowal along with associated 220 kV D/C T lines; (iii) interconnection of 9 IPP plants with national grid for power disposal; (iv) interconnection of 6 IPP plants with National Grid for power dispersal; and (v) dispersal of power from Neelum Jehlum hydropower project.