The National Electric Power Regulatory Authority (Nepra) has been assigned to analyse tariff profile and technical data provided by the Chinese company for the installation of two 300 megawatt coal-based power plants in Thar, sources told Business Recorder.
Last week a Pakistan team headed by Sindh Mines and Mineral Minister, Ifran Ullah Marwat and a top official of Chinese Shinuha Group, Wu Yuan discussed the disputed points for five days and developed consensus on some of the issues. However, the issue relating to tariff remained unresolved because Pakistan believes that tariff was high and not acceptable, sources said.
The PPIB had worked out 3.98 to 4.2 cents per unit tariff for the coal plant, while Wapda calculated the levelised tariff at 3.08 cent per unit. Shenhau Group had quoted 5.41 cent per unit, which according to Pakistani technical experts was not acceptable.
Sources said that the Chinese Group has also agreed to slash $1074.84 billion project cost, removing one of the objections raised by Wapda. When the Minister for Water and Power Liaqat Ali Jatoi was asked to comment on the issue, he said that Nepra would suggest the levelised tariff for the plants.
Asked when the final agreement was expected to be signed, Jatoi said that the issue would be forwarded to the President and Prime Minister for approval and this process may take about a month.
The project is to be commissioned on 'Build-Operate-Own' (BOO) by Chinese company and development work is expected to be started on the site by September next. The first power plant of 300 megawatt would be functional by early 2008 and second by September same year.
Pakistan has already spent Rs 1 billion on the project and an additional amount of Rs 2 billion has also been allocated for the infrastructure development at the site to facilitate the Chinese company to start work on the project.
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