The depreciation of the rupee against the dollar has pushed up the cost of 500 kV Moro Substation, Naushehro Feroze Sindh by almost Rs 1 billion. The original PC-1 of the project put the total cost of the project at Rs.5.404 billion with the foreign exchange component (FEC) of the project coming around to almost Rs.3.6 billion, which was estimated at Rs.115.4 per dollar in the original PC-1. The update cost of the project showed that the total cost of the project now stood at Rs.6.331 billion with its FEC standing at Rs.4.269 billion by estimating it Rs.138.39 per dollar, the official document of the project showed.
The foreign funding for the project has been proposed to be financed by the Asian Development Bank (ADB) under Multi Tranche Financing Facility-II.
The local component of financing for the project also increased to Rs.2.062 billion in the updated cost compared to original PC-1, which indicated it at Rs.1.844 billion.
Project, which has been referred to Ecnec for final approval will be developed in Moro, District Naushehro Feroze and its implementation period has been calculated four years.
The main objective of the project is conversion of 500 kV switching station at Moro which is under implementation to 500 kV substation to meet the growing power requirement of Sukkur Electric Power Company (SEPCO) region including 132 kV grid stations at Kandiaro and Naushahro Feroz in the jurisdiction of SEPCO.
Project is part of the government''s efforts to strengthen the transmission system of the country, which is overloaded and not capable to cope with the increasing power demand. Government anticipated to add thousands of megawatts addition in the system in coming years and would result in frequent tripping and heavy breakdowns, thus, enhancement in transmission and transformation capacity of system is required.
According to official documents on the scope of the project, the power transmission sector''s strategy is to provide reliable, uninterrupted supply to its consumers. Keeping in view the present overloaded system and increasing availability of additional power generation capacity in near future coupled with hefty power demand, to strengthening & enhancing the capacity of transmission system is imperative. The proposed 500 kV Moro substation will meet the power demand of the SEPCO area as well as improving the voltage profile and reduce transmission system losses, The scheme will also result in overall power system efficiency and stability to deliver adequate and quality power to the consumers.
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