The federal government is said to be proposing to the Karachi Electric Supply Corporation (KESC) to acquire those rental power plants, which the latter had refused to accept in the past, informed sources told Business Recorder.
"If KESC acquires both these rental power plants, it will inject around 200 MW additional power to its system," the sources added. Giving the background, the sources said that M/s Envicon and M/s One World Consultant Inc had expressed interest to set-up 48 MW barge mounted power project and 136 MW rental power project respectively at Karachi.
Accordingly, a summary for Economic Co-ordination Committee (ECC) of the cabinet was moved by Petroleum Ministry, proposing that for 48 MW barge mounted power project 10 to 12 MMFCD at Port Qasim was required by M/s Envicon and for 136 MW power project sponsored by M/s One World Consultant Inc required 32 MMCFD gas at Karachi.
The sources said that the ECC in its decision decided that 60 MMCFD gas, already allocated to SSGC for the two Independent Power Producers (IPPs) sponsored by M/s Tapal and M/s Fauji Korangi, be placed at the disposal of Ministry of Water and Power to undertake fast tack power projects in Karachi by M/s Envicon and M/s One World Consultant Inc.
The facility will be available for a period of two years or start-up of the panned IPPs (M/s Fauji Korangi) whichever is earlier, subject to conditions prescribed by SSGC. M/s One World Consultant Inc contacted KESC for providing necessary commercial guarantees for payments to its rental power plant. However, KESC failed to provide the required guarantee, the sources said, adding that now the company has approached Pakistan Electric Power Company (Pepco) for entering into a rental power agreement.
According to sources, Pepco has proposed installation of 144 MW rental power plant at 132 kV Nooriabad grid station at the outskirts of Karachi, The sources said that the federal government has observed that KESC time and again complains of shortage of power. Therefore, it was appropriate for the power-hungry utility to acquire these rental power plants which will inject around 200 MW of additional power in its system.
It was the considered view of the concerned ministries that this option would also ease out ever increasing KESC payables to Pepco. The gas supply to these power plants is also being maintained out of quota of M/s Tapal and M/s Fauji Korangi to be set up in KESC.