‘Powerless’ KESC inks independent power deal


The “mala fide” intentions of the Karachi Electric Supply Company (KESC) in conversion of its two dual-fuel power units, each of 210 megawatts, into coal have been exposed with a disclosure that the power utility has inked an Independent Power Producer (IPP)-like agreement with a newly-establish firm and has agreed to purchase electricity from it instead of generating power through its own resources.
The power utility has scheduled an extra-ordinary general body meeting on August 23rd (tomorrow) to get a final nod from its shareholders for conversion of Unit-3 and Unit-4 at Bin Qasim Power Station-1 to coal.
The documents available with Pakistan Today have disclosed that the KESC would purchase power from K-Energy (Pvt) Ltd, a newly formed firm, and would not generate power by itself. KESC would give its two power units of total 420MWs to K-Energy (Pvt) Ltd on 20 years lease under Power Purchase Agreement.
A Hong Kong-based company, named Three Eagles, would finance the power giant to convert two dual-fuel power units into coal while K-Energy (Pvt) Ltd would only execute the project.
K-Energy (Pvt) Ltd would undertake construction of new boiler island and ancillary equipment for coal and ash handling as well as rehabilitation of both power units. The company is recently established and has no experience of conversion of power unit to coal.