KESC, PPIB in a row over selection of sites for power projects

Islamabad: Serious differences have emerged between the newly appointed Chief Executive Officer (CEO) of Karachi Electric Supply Corporation (KESC) Naveed Ismail and MD Private Power Infrastructure Board (PPIB) Fayyaz Elahi over the selection of sites for new rental power projects to be established in Karachi, well-informed sources in PPIB said.

The main reason behind the differences is the barge mounted power plant of 248.95MW for which no site has been finalised yet. Both the projects were approved by the Economic Co-ordination Committee (ECC) of the cabinet some months ago but the responsible agencies could not finalise the sites for the projects.

Sources said that main dispute between the new management of KESC and PPIB was over the location of the projects as the former has refused to allow the projects on those sites which are being proposed by the investors.

A team comprising of representatives of PEPCO, KESC, PPIB and Genco-IV visited the three proposed sites for Karkey 248.95MW barge mounted power plant.

The team observed that West Wharf site is located at the back of West Wharf 132/11kv substation and has Karachi International Container Terminal (KCIT) between the sea and boundary of West Wharf substation sources added.

Cranes are installed in the area behind the substation, as there is hectic shipping activity on this site, it involves inter-ministerial issues. Hence the site is not suitable for locating the Karkey project. Queen's Road site is located at the back of Lalazar 220/132kv substation. Space is available for parking the power barge. Although this site is suitable from transmission interconnection and power dispersal point of view, the power barge cannot be transported to this site due to Native Jetty (Napier Mole) bridge. In addition environmental issues may emerge for this due to mangroves in the area. Hence the site is not appropriate for Karkey project.

The site in the Hawksbay area (in the vicinity of Kanupp power station) involves upgradation of the existing Kanupp-Baldia Town 132 KV transmission line, (about 5km) from the power barge to the pole 41 of the existing Kanupp Baldia Town 132 kv transmission line and construction of a new substation which may not be completed in the given timeline of the fast track project. Hence, Karkey project cannot be located at this site. The sources said that the team also investigated an additional site near Mauripur 220/132kv-grid station, which is considered suitable due to availability of space for power barge and minimal transmission length. Moreover, it is located close to the KESC load centre.

MD PPIB is of the view that Mauripur site is most suitable and that is recommended for locating Karkey rental power project of 248.95MW capacity but according to sources the KESC is unlikely to approve the proposal. The sources further said that there were also serious differences between KESC and PPIB over the selection of sites for another project. However, the sources did not mention the name of the projects.

Giving the background, they said that the federal cabinet on May 14, 2008 approved solicitation for fast-track power generation projects through International Competitive Bidding (ICB).

The cabinet had approved two packages ie, Package-A 1000MW had been proposed from IPPs within Pepco jurisdiction, whereas package-B was based on rental power plants. Initially it had been proposed that 200 MW should be arranged through rental and barge mounted plants near Karachi but later on it was increased to 500MW.

The sources said projects were advertised on May 17, 2008. Request for proposals (RFP) issued to 42 interested parties (29 for Package-A and 13 for Package-B) by PPIB. The last date of bid submission was July 15, 2008. Technical proposals of 12 received bids (9 for Package-A and 3 for Package-B) were opened on the same day for 3,738 MW capacities.

The offers of LPG-fired IPPs to be installed by Progas (305 MW) and Cavalier E