ECC to consider purchase of rental power plants today: proposal ''highly manoeuvred''

The Economic Coordination Committee of the Cabinet will consider on Friday a ''highly manoeuvred'' proposal regarding purchase of four rental power plants of 200-300 MW each to be installed in the private sector, informed sources told Business Recorder.
The sources said whatever was approved by Water and Power Minister Tariq Hamid at a meeting had been manipulated by some top officials of the Ministry of Water and Power and Pakistan Electrical Power Company. These officials skilfully influenced the outcome of the meeting or the situation in order to get what they wanted in an unfair way prior to placing the proposal before the ECC. The Pepco Managing Director made a presentation at an inter-ministerial meeting on January 29, suggesting different options to deal with power shortage.
According to the presentation, Pepco MD presented two packages for discussion: Package-A suggested that two power plants of 500-600 MW each (combined capacity 1000-1200 MW) preferably at Dadu and Faisalabad/Chichoki Mallian to enhance capacity of Gencos operating in the public sector.
Package-B proposed four power plants each of 200-300 MW (combined capacity 1000-1200 MW) as rental power plants in private sector located from amongst site such as, Sahiwal, Ghakar, Kot Lakhpat, Sialkot, Shikarpur, Jamshoro, Emanabad and Sheikhupura, etc.
THE MINISTRY OF WATER AND POWER GAVE THE FOLLOWING RECOMMENDATIONS:
i) In order to meet power shortage in shortest possible time preference will be accorded to package-A proposed by Pepco which would furnish a formal proposal/PC-1 to the Planning Commission.
ii) Keeping in view the shortage of gas, it was decided that proposals for rental power plants ie package-B will be based on dual fuel (gas and RFO), single fuel RFO and will be implemented in shortest possible time.
iii) Rental power plants will be arranged for a period of 3+1 years.
iv) Efforts be made that the tariff for rental power plants is in line with the tariff allowed to the IPPs based on similar technology for their first 10 years.
v) Mandatory storage of oil for rental plants will be for 10 days.
vi) Pepco would re-evaluate the sites for the rental power plants on the basis of space for oil storage, transportation of oil to the site, environmental aspects, power evacuation, etc.
vii) Pepco to prepare a mid-term revised forecast for demand and supply of power and PPIB to provide necessary input/data to Pepco in respect of prospective IPPs.
The sources said the Water and Power Minister was contemplating establishing thermal power plants in public sector whereas Pepco was making efforts to go for rental power plants.
They said the summary had not been moved to the Finance Ministry, Planning Commission, Board of Investment, Nepra and PPIB for comments and it has been presumed that all the stakeholders would agree to the proposal.