AFD, USAID main contributors: Wapda set to rehabilitate 980 megawatts Mangla Station

Water and Power Development Authority (Wapda) is set to rehabilitate 980 MW Mangla Hydroelectric Power Station, with the financing of $237 million (euro 223.37 million) to be contributed by Agence Francaise Development (AFD) (euro 90 million), USAID (euro 127.04 million) and Wapda (euro 8.33 million). The main objective of the project is to add 90 MW to the National Grid through refurbishing and upgrading the power plant. This will improve the reliability and availability of this power plant for the next 25-30 years.
The main activities of the project are (i) refurbish and upgrade units 5 and 6, increasing the generation capacity from 80 MW to 135 MW for unit 5 and from 100 MW to 135 MW for unit 6; (ii) supply, install, and refurbish the plant's inlet valves; (iii) refurbish and upgrade the power house crane; (iv) supply 169 MVA capacity power transformers; (v) supply, install, and refurbish mechanical and electrical equipment, and conduct civil works; (vi) procure and install the plant control and instrumentation system for the control room; and (vii) procure and install the switch yard control automation and protection.
The rehabilitation project would be completed in two phases (IX phases). Phase I will comprise of six packages. In package I, unit-5-6 turbine generator will be rehabilitated at a cost of $41.4 million (euro 39.06 million) with funds provided by USAID. Package II is related to power crane refurbishment at a cost of $1.29 million, funds again to be provided by USAID, whereas package III is about main power transformer which will be refurbished at a cost of $22.55 million of which euro 9.26 million will be contributed by AFD, euro 9.41 million by USAID and euro 2.6 million by Wapda. Package IV and V comprising turbine inlet valve and BoP mechanical will be completed at a cost of euro 3.73 million and euro 20.02 million respectively. Package VI which is related to BoP electrical will be completed at a cost of euro 21.26 million ($22.54 million), of which share of AFD will be euro 5.28 million, USAID euro 15.68 million and Wapda euro 0.30 million, respectively. The total cost of phase I is $112.94 million (euro 106.53) of which the shares of AFD, USAID and Wapda would be Euro 14.54 million, 89.10 million and euro 2.90 million, respectively.
In phase II, package I, unit 1-4 turbine generators will be refurbished at a cost of euro 64.37 million ($68.23 million) of which share of AFD and Wapda would be euro 60.94 million and euro 3.42 million, respectively. Package VIII is related to plant control and protect at a cost of euro 6.44 million which would be contributed by the USAID. In package IX, USAID will provide euro 5.66 million for switchyard control and protection. The total cost of phase II $81.06 million (euro 76.47 million) of which AFD, USAID and Wapda would share euro 60.94 million, euro 12.10 million and $3.42 million, respectively. The total cost of supervision and engineering would be euro 21.59 million, with shares of AFD and USAID at euro 10.63 million and euro 10.95 million. USAID would also provide euro 11.64 million for transport, erection, dismantling and euro 14.88 million for contingencies.
Country Director AFD, Jacky Amprou, in a letter to the Secretary Economic Affairs Division (EAD) has revealed that the agency is contemplating to provide the government of Pakistan with a financing of euro 90 million for partially financing Mangla Power Plant rehabilitation project. The main features of AFD credit facility would be as follows (i) interest rate (floating) 6 months Euribor + 55 basis points; (ii) appraisal fee- 0.25 percent on the principal amount of the facility; (iii) term - 20 years; and (v) grace period.
According to the letter, only upon signature of the agreement, the content whereof will have been agreed between AFD and GoP at the latest on July 21, 2017, will the agreement be binding on the AFD. The financing is also subject to the condition that no material adverse change has occurred to the project or its environment.
According to the USAID, it is partnering with the government of Pakistan to rehabilitate the Mangla Hydroelectric Power Station. The dam has a power generation capacity of 1,000 MW from 10 generating units. However, as a result of degraded equipment, the plant's capacity was reduced to 980 MW. By refurbishing and upgrading Units 5 and 6, along with related plant facility enhancements, the Mangla Dam Rehabilitation Project will add 90 MW to the plant's generation capacity.
The USAID maintains that this is enough to supply electricity to 833,580 people. By upgrading units 5 and 6, Mangla's revenue from electricity sales are expected to be approximately $60 million per year. New, modern equipment will ensure the availability of spare parts for preventive maintenance, and will improve the reliability and availability of this power plant for the next 25-30 years.