ISLAMABAD: The K-Electric has supported competitive bidding of 300 MW Thar coal-fired power plant of Siddiqsons Energy Limited (SEL).

A couple of months ago Private Power and Infrastructure Board (PPIB) constituted a seven-member special technical committee to take a global view to ascertain whether the government of Pakistan (GoP), as shareholder of its entities, will be better off in financial terms if power purchaser of 300-MW coal project of M/s Siddiqsons Energy Limited (SEL) is changed from CPPA-G to Karachi Electric (KE).

Chief Strategy Officer (CSO) K-Electric, Shab Qadir Khan in a letter to Managing Director PPIB, Shah Jahan Mirza, referred to PPIB letter of December 6, 2023, in which reference was made to the minutes of the sixth Special Investment Facilitation Council (SIFC) Executive Committee meeting held on October 23-24, 2023, wherein PPIB was tasked to conduct an International Competitive Bidding (ICB) process for the development of a new 330 MW Thar coal based mine mouth project.

The letter further outlined PPIB’s request to KE to conduct a Feasibility Study (FS) for initiating the procurement process of the project.

The power utility company maintained that it is fully supportive of the idea that equal opportunity should be provided to all the wiling developers in order to discover the true price of setting up local coal-based mine mouth project in the most transparent and efficient route available within the current regulatory regime.

The KE appreciated the support offered by PPIB in the facilitation of this procurement process. Before it proceeds with the FS, it will be imperative for the power utility company KE to attain clarity on various aspects, including but not limited to the allocation of the land parcel at the Thar coalfield, which is a fundamental requirement before initiating any sort of feasibility study.

Copyright Business Recorder, 2023