Discussions are afoot between two foreign companies and the Private Power Infrastructure Board (PPIB) for the establishment of 1,000 mw plants each in the coastal belt near Karachi, based on imported coal. The representatives of United States AES Corporation and Mitsui Japan had recently met PPIB officials to finalise formalities of the projects regarding setting up of these units.
Sources told Business Recorder on Monday that the government had already approved the proposals of both foreign companies and major decision would be taken by the third week of June.
In the key talks, construction of a jetty for coal import would be highlighted, which probably would be built at Keti Bunder. They said that the government had received letters of interest (LoIs) from both companies and had approved them to go ahead with their plans.
For overcoming power shortfall in the country, the government is desperately seeking resources for electricity production, while furnace oil prices have climbed beyond reach, gas reserves are depleting and water resources for power generation are in doldrums.
However, producing electricity from coal-based power units are the best option for the government, sources said. They said the coal could be imported from Australia, South Africa or China for this purpose.
Experts believe that three to four million tonnes imported coal (depending upon high BTU) required for producing over 1000 mw thermal power would mean that the country would import for two proposed projects about eight million tonnes coal.