US would extend $18.36 million financial assistance to Pakistan for repairing of Thermal Power Station (TPS) Jamshoro, under strategic objective grant. For this purpose, an agreement will be inked between the GoP and the USAID on March, 17, 2010, in the committee room of the Ministry of Water and Power.
Pakistan Electric Power Company (Pepco) hopes that after revamping of this power station, full capacity of 795 MW for the power plant will be achieved, thus adding an additional 100 MW to the system, besides improving upon the availability of the station.
This will help in continuing efforts to mitigate the presently ongoing power crises. Additionally, 100MW thus added to the system would be available in the same fuel as being presently used up at the Jamshoro plant.
TPS Jamshoro is located on the right bank of river Indus to North West of village Jamshoro, which is five kilometre from city of Hyderabad (Sindh). This power station was constructed in different phases during the years 1989-91 and comprises of four conventional steam power units, and has total installed capacity of 850 MW. The installed equipment is a combination of Japanese and Chinese technology running on fuel oil and dual fuel oil /natural gas, respectively. Due to persistent shortage of gas and furnace oil, performance of all the four units was adversely affected to result in a capacity loss of 150 MW. The declared de-rated capacity of the plant got reduced to only 600-700 MW only.
US agreed to carry out a programme of assistance through USAID to support the Repair and Maintenance(R&M) of Pepco's thermal power stations in mitigating and ultimately resolving the energy crises.
USAID and GoP entities, in particular, MoWP, Pepco and Generating Companies (Gencos) jointly selected TPS Jamshoro, Guddu and Muzaffargarh for this programme in September 2009. Now USAID has finalised the R&M programme of these units. R&M will be completed within 2-18 months at an estimated cost of $18.36 million for a gain of 100 MW, which could produce an additional 530 GWh of energy per year. An additional benefit from the rehabilitation measures will be reduction in fuel consumption and improvement of heat rate from the present 12669 to 12162 British Thermal unit per KWH. In terms of money, the total saving will be about $11.4 million per year making the proposed expenditure extremely beneficial.