KWSB to set up 35 megawatts power plant at Dhabeji

Karachi Water and Sewerage Board (KWSB) has chalked out a plan to establish 35 megawatt (MW) power plant at Dhabeji, KWSB official informed Business Recorder on Thursday. Thirty-five MW more electricity would be available after plant completion at lower cost as compared to Karachi Electric and Supply Corporation (KESC).
The project cost is Rs 40 million and American Company (AC) has given green signal to invest the same amount for the project, he added. He said that KWSB had to buy a unit of electricity at the rate of Rs 5.95 from KESC while AC would provide power at Rs 3.98 per unit through which the board would save million of rupees.
He observed that KWSB will have to purchase the power at a very expensive rate for the next 25 years period, if it would continue purchasing electricity from KESC.
The KESC tariff will not remain the same during next 25 years, as evident from the present trend of KESC tariff that is going upward at an exorbitant rate, he elaborated.
The KWSB requires 23 MW electricity to run its water pumping stations, he said, adding, "The power plant would fulfil the power supply demand of Dhabeji while additional 12 MW would be sold to KESC or industrial units at Dhabeji." He said that power plant would be constructed on Built, Operate and Transfer (BOT) basis, adding that on the expiry of BOT, AC will provide every possible assistance to KWSB to run this project smoothly.
City District Government Karachi (CDGK) and KWSB are facilitating AC to establish power plant while they would also arrange supply of natural gas from Sui Southern Gas Company (SSGC) for the plant, he said. "A Letter of Endorsement will also be provided to AC from State Bank to ensure the payment of tariff to the company on time besides endorsement for fuel supply agreements," he added.
This project will be completed within 21 months after the commencement and it would fulfil the power demands of next 25 years, he said, adding that government has approved BOT contract for 25 years and it will be extendable, although AC will bound to transfer control to KWSB.
The power plant will consist of natural gas, high-speed diesel and light diesel oil-fired combustion turbine power generating units and three steam turbine power generating units, he apprised. The KWSB has also planned to install another power plant at East Filter Plant with the financial assistance of private sectors, he said.