Endeavours to boost installed power capacity, generation bearing fruits

ISLAMABAD: The endeavours made during last four years have helped in boosting installed capacity of electricity in the country through various sources, reaching 28,238 MW as on June 1, 2017 as compared to 21,041 MW on June 1, 2013.

Similarly, the power generation which was 11,746 MW as on June 1, 2013 has touched 15,746 MW mark on June 1, 2017.

The statistics issued by Energy Division regarding source-wise installed capacity and generation of electricity as on June 1, 2017 showed on Wednesday that of the total 7,248 MW installed capacity the average generation in Hydel area was 4924 MW, in thermal area the total installed capacity was 18,200 MW and average generation was 9611 MW, in nuclear area the total installed capacity was 1,321 MW and average generation was 919 MW, in solar area the total installed capacity was 400 MW and average generation was 83 MW, in wind area the total installed capacity was 788 MW and average generation was 73 MW, and in baggase domain the total installed capacity was 281 MW and average generation was 136 MW as on June 1, 2017.

The detail of amount allocated, released and spent on projects of power sector during financial years 2008-09 to 2012-13 with project and year-wise break-up showed that Alternative Energy Development Board (AEDB) is pursuing developments of renewable energy based power generation projects through private sector on IPP mode wherein no government funding is involved.

Moreover, for Neelum Jhelum Hydropower Project (NJHEP) of Water and Power Development Authority (WAPDA), original PC-I, amounting to Rs. 84,502.26 million was approved and due to increase in cost, 3rd revised PC-I amounting to Rs. 404,321.100 million was approved in December 2015.

The cost of NJHEP was not increased due to either stoppage or slowdown of works, rather non-availability of timely funds remained major cause of delay in commencement and completion. Due to non-availability of funds, project commencement was delayed to 2008, though without financial close for establishing water rights on Neelum water. The Project commenced after provision of Rs. 5.2 billion Cash Development Loan with an arrangement of Neelum Jhelum Surcharge from government. The pace of works, thus, remained slow due to funding problem.

Similarly, rehabilitation of Jabban Hydroelectric power station was completed in March, 2014. The original completion of project was in November, 2011.Extension of time upto respective TOC actual dates was granted by WAPDA without any cost compensation.

The Project was delayed due to worst law and order situation in the country, particularly in Khyber Pakhtunkhwa (KPK).The contractor (Chinese) were reluctant to resume work at project site.

Increase in scope of works after award of contract i.e. PLC system secured metering system, rock excavation of pen stock supports and anchor blocks, widening of forebay structure etc. The original PC-I, amounting to Rs. 1,037.54 million was approved in September 2007.

The estimates of Feasibility Study for Rehabilitation were based upon Market Surveys and WAPDA Composite Scheduled Rates (WCSR) 2003 with exchange rate of 1 US$ equal to Rs60.

Consequent upon Tender Opening, huge difference was observed in prices of original PC-I (year 2007) and prices quoted by the Bidders (year 2008), which warranted revision of the PC-I.

Accordingly, the revised estimates were prepared on basis of scope revised as result of Detailed Engineering Design and Bid Price of successful single responsive bidder. Revised PC-I amounting to Rs. 3,753.575 million was approved by ECNEC in December 2010.

The original PC-I, amounting to Rs. 7,035.128 million of Golen Gol Hydropower was approved in September 2002. Bidding process was started in 2009 after finalization of funding arrangements in November, 2008.

Civil works of structure and power house building were awarded in August, 2010 and work was commenced in February 2011. Work could not be started from September 2002 until February 2011 due to non-availability of funds.

After repeated tendering and lengthy litigation among the bidders, E&M works and transmission line components were awarded in February and November, 2014 respectively. Presently major components of the project, civil works of weir structures, power house and switch yard has been completed, whereas E&M and transmission line works are 80 per cent completed.

First revised PC-I was approved in September 2016 amounting to Rs. 29,077.173 million. The cost of the project increased due to escalation. Works on all components of the project are in full swing and as per project implementation schedule, commercial operation of Unit-1 is planned on December 25, 2017.

Another project was Kurram Tangi Dam (Stage-I) for which original PC-I of Stage-I amounting to Rs. 12,662 million was approved in March 2014. After repeated bidding process (due to precarious law and order situation), work of Stage-1 (Kaitu Weir and Affiliated Structures) was awarded at a cost of Rs. 13,206.933 million. Contract agreement was signed on June 07, 2017 with date of commencement and completion as July 2016 and April 2019 respectively. First revised PC-I was approved amounting to Rs. 21,059. Overall progress achieved so far is 16 per cent.

The original PC-I amounting to Rs. 7,066.961 million of Keyal Khwar Hydropower project was approved in January 2004 and amount of second revised PC-I was Rs. 26,084.178 approved in January 2016. Cost of the project increased due to price escalation from 2004 to 2016.

Slow progress of project is due to slower land acquisition process by local government of KPK as well as contractor's pace of work is slow on Civil Works Contract. In this context, it is indicated that cost of the project is within approved PC-I.

Similarly, main PC-I of Diamer Basha Dam project, amounting to Rs. 894.257 billion was approved by ECNEC on August 20, 2009. Construction of main dam could not be started yet due to non-arrangement of finances from Donor Agencies. Cost of the project has increased due to price escalation from 2009 to 2017. Land acquisition, construction of infrastructure/preliminary works i.e. project colony at Thor valley, Composite Model Village-II at Harpan Das are in progress.

Listing steps being taken by present government to meet growing electricity demand and complete different power projects, it has been revealed that PC-I of Tarbela 5th Extension Hydro Power Project (HPP) has been approved. Tendering process is in progress and expected date to start work is April, 2018. The project will be completed in 2021.

The data revealed that for Neelum Jhelum Hydropower project, the government proceeded on arranging foreign and local loans from December 2009 to December 2016. No lender was ready to finance NJHEP except Middle East Lenders. Later, with concerted efforts Exim Bank China agreed initially with financing of US$ 448 million in January 2014 and later on second loan of US$ 576 million in February 2017 (4th revision of PC-I (2017) amounting to Rs. 500,343 million has been submitted to Ministry of Water & Power on June 09, 2017 for approval of ECNEC). The project is now in completion phase where impounding of reservoir has commenced on October 19, 2017.

For rehabilitation of Jabban Hydroelectric Power Station, an amount of Rs. 3,956.313 million has been incurred on the project and to regularize excess amount of Rs. 202.738 million, the revision of PC-I is under process.

Similarly, for Golen Gol Hydropower project, all funding arrangements were finalized by the government. Revised PC-1, based upon bid prices was approved by ECNEC on September 30, 2016.

For Kurram Tangi Dam (Stage-I), all funding arrangements were finalized by the government while revised PC-1, based upon bid prices was approved by ECNEC on April 22, 2016.

Moreover, to boost up land acquisition process for Keyal Khwar Hydropower project, the case is vigorously being pursued with concerned Authority while for Diamer Basha Dam project,  WAPDA has been directed to submit two updated PC-Is (one for dam part and other for power generation). In this regard, PC-I (Dam Part) amounting to Rs. 649 has been submitted to concerned Ministry and has been forwarded to Planning Commission. Dam part is supposed to be built through Government of Pakistan grant, WAPDA equity and commercial financing. PC-I (Power Generation Facilities) amounting to Rs. 751 billion has been submitted and power generation part may be built on commercial basis/WAPDA equity.