K-Electric (KE) and National Industrial Parks Development & Management Company (NIP) on Wednesday signed a Memorandum of Understanding for laying of transmission lines, building grid station, and supply of electricity lines at Bin Qasim Industrial Park (BQIP).
A copy of the MoU available with Business Recorder said, KE has provided an initial tentative cost estimate of Rs.1.8 billion for an 80 MVA (64 MW) grid and 132 KV transmission line, extendable as per future needs.
KE expects to receive Rs500m to start the construction of grid at the designated "zero point" at BQIP. This payment is also expected to ensure the energization of urgently needed 11KV feeders of the four zone enterprises.
On the other hand, NIP shall immediately move a request/summary for obtaining funding support from federal government/ECC under Sec 27 of SEZ Act 2012, and shall endeavour to get a decision on it within 30 days.
The MoU was signed by Moonis Alvi, CEO K-Electric, and Rizwan Bhatti, CEO NIP, in the presence of Abdul Razak Dawood, Adviser to Prime Minister and other prominent businessmen here at PIDC.
The agreement comes at a crucial time when various large-scale industrial concerns in the project are planning to enter production phase in the coming months.
As per agreement, the power utility is ready to jointly present the technical and cost structure of grid to federal government/ECC along with NIP. In case full funding support for the entire grid is not received, KE and NIP shall consider working on a grid cost-sharing arrangement, whereby the cost of the grid will be distributed/allocated to the industrial units in proportion of their load requirements.
In consultation with KE, NIP has already identified and earmarked a sufficient size plot within BQIP, for the installation of its SODS Grid through KE. NIP to ensure free access to KE staff from the date of signing of this undertaking to the grid site to start the work.
That NIP Board in its 67th meeting held on 6th February, 2019 has approved the award of infrastructure development contracts to the tune of approx Rs1.5 billion, which will ensure the phase-ll infrastructure development of BQIP, and resultantly, the rapid industrialisation of the zone is expected.
NIP and KE shall enter into an SDDS agreement, under Sec 4A of the consumer Eligibility Criteria, within 30 days of receiving of funding confirmation from the Government/ECC.
In anticipation of this understanding, the KE has already started its work on the pending applications of the 4 zone enterprises for provision of electricity by end March 2019 through 11KV feeder lines from its Pipri grid.
The payment demand notes shall be issued to zone enterprises by KE forthwith upon signing of this MoU. However, continuation/completion of work shall be subject to the realisation of their payments and submission of ROW.
The MoU is in addition to and not in derogation or substitution of any other rights or remedies that parties may be entitled to under the law, rules and regulations and in particular the provisions of the Consumer Services Manual, Eligibility Criteria, issued by NEPRA and the provisions of the Electricity Act 1910 read together with relevant provisions of the Distribution Code Issued by NEPRA wherever applicable.
KE and NIP indemnify each other against any losses or damages of whatsoever nature arising from the breach of any provision of this MoU by the other party.
On this occasion, Moonis Alvi, CEO, KE said, "We are committed to powering industrial growth and facilitate industrial customers; signing of this MoU today is yet another testament of our efforts to accelerate socioeconomic development of Pakistan industrial hub Karachi. Industries are and will always remain our top priority and all possible measures would be taken to continue to facilitate industrial consumers - helping them unlock their full potential."
Over the years, he said the power utility has taken several initiatives to facilitate industrial customers, some of which include exempting them from load-shed, adding new grids to meet their growing power demand, reducing turnaround time to provide new industrial power connection, conducting energy audits to help them improve their energy efficiency and so on.
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