A presentation regarding proposed 20-million gallons per day (MGD) water desalination plant at Kemari Karachi, was given to a high-level meeting here Monday at the Governor House. The presentation was made by a US Company M/S Provital International Inc for the installation of 20-MGD seawater desalination plant at Kemari to supply drinking-quality water to the industrials of SITE through their dedicated pipeline.
The project is based on 100% buy back arrangements with SITE Association of industries represented by Dr Mirza Ikhtiar Baig to purchase 20 million gallon water of zero TDS Rs 111/- per 1000 gallon.
Sindh Governor Dr Ishratul Ibad, Federal Minister for Ports & Shipping Babar Ghouri, Provincial Minister for Planning and Development Shoaib Bukhari, Advisor to Chief Minister Local Government
Waseem Akhtar, Chairman KPT Admiral Hayat, Secretary Industries, Chairman SITE Association Dr Mirza Ikhtiar Baig, MD KWSB and MD KESC and MD SITE Ltd were present.
According to Dr Baig, at present the water requirement of SITE industries was 30 million gallon per day. Out of which KWSB was giving 6-7 million MGD water to the SITE industries and the remaining requirement was met by the tankers, which was not only expensive but water was also not of good quality.
The proposed project would be installed at Kemari, which would also produce 100 MW power through windmill technology for which KPT was providing them with land.
Cost of the project for water desalination is Euro 49 million and the cost of the power generation project is Euro 100 million making total cost of the project Euro 149 million that is about Rs3.5 billion.
The project is on BOT basis against the buy back guarantee of SITE association & KESC for the purchase of water and power produced. The project can start 25percent production by December 2005 if the power purchase agreement is finalised by 20th August 2005.
After the completion of 25 years the project will be handed over to KPT in return of KPT giving them land for their project.
The Federal Minister for Ports & Shipping has initiated this project on the instruction of President of Pakistan to find alternative source of water and power for the industries of SITE.
Another briefing was given by Dr Ikhtiar Baig to Governor and Federal Minister, who agreed with the proposal of Chairman SITE Association that KWSB should take responsibility to supply water to the residential areas located in SITE and SITE Ltd should only be responsible to supply water to the industries and its related units.
According to Dr Baig main reason for the losses to SITE Ltd was the supply of water free of cost to residential colonies, Madarsas, Mosques, Police Stations and other government non-industrial units located in SITE area, who regularly took water from the quota of SITE but did not pay.
Dr Ikhtiar Baig who is also a Director on the Board of SITE Ltd welcomed the decision and assured MD Water Board to provide all assistance.
He advised the investors that power purchase agreement to be signed by KESC only after having the approval from the NEPRA. He also expected the participants of the meeting that if there were no overall increase in the weighted-average rates of KESC then NEPRA would be more than happy to purchase power from Provital International Inc.
Chairman KPT appreciated Dr Ikhtiar Baig's prompt response to the project and requested to co-ordinate with KESC and NEPRA for the requested power agreement on priority basis so that ground breaking ceremony of the project could be held on September 001.
SITE Association of Industry is the first one to submit the draft Memorandum of Articles of Association for the Private Limited SITE Development Company to look after the installation of combined effluent treatment plant and infra structure development in the SITE area on the pattern of Sunder industrial zone.
According to Dr Baig, his top priority was to improve the infrastructure in the SITE, particularly road network and the alternative source of water and power to meet the growing needs of industrial estate, which was imperative for the future growth of the industries of SITE Karachi.
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