The much delayed $377 million 650 megawatts Combined Cycle Bin Qasim Power Plant project of Karachi Electric Supply Company (KESC) is not proving to be of any benefit to the load shedding hit city, due to, what the sources claim, the lack of gas.
Though the important plant has initially started generating almost 120 megawatts last month, the supply from the new plant has not benefitted the citizens as one unit of the plant has been switched on at the cost of the same unit at the existing old plant at Bin Qasim, sources said.
As there is no additional gas available to fuel the 560 MW Plant, gas supplied to the old plant in the area has been shifted to the new one making no difference in the company’s system.
“As the new plant is comparatively more efficient than the existing dual fueled plant of almost 1200 MW, the available gas from one of the six old units has been directed towards the newly developed power project,” they said.
However, sources in Sui Southern Gas Company (SSGC) claim that, under the present situation of gas constrains, the additional supply to the new plant was not possible. Interestingly, they said, no agreement or understanding was reached upon between KESC and SSGC for providing gas to the newly plant prior to its installation. However, official sources in KESC claimed that the gas allocation for the project was already made by the government as no international lender could provide a huge loan for any project. “How can the foreign lenders provide $377 million without ensuring that the basic requirements related to the project are met in the country?”
“KESC is ready to sign any agreement with SSGC if the gas volume, to be provided to the former, was ensured in the agreement,” they added. The project started generating around 120 MW in June 2011 with the operation of one unit while another two units would also be switched on in July and August this year, sources added. According to the sources three units would generate at least 115 MW each while the fourth one which would begin its operations by February 2012, would generate almost 190 MW.
This unit would be steam based and will be run on steam produced by the other three units, they added. However, sources said that the shifting of gas and closure of old plants would not benefit the masses who are facing 14 hours of load shedding, as there would be no additional electricity in the company system. There are already six dual fueled units at Bin Qasim with a power generating capacity of at least 180 MW each.
The company mostly relied upon power supply from the same plant as other plants were comparatively producing less electricity. It is worth mentioning here that the World Bank had sanctioned at least Rs27 billion while local banking consortium had also released Rs8 billion for the project. The project was being financed through a combination of equity funded by shareholders, and long term loans provided by the Asian Development Bank, the International Finance Corporation, and a syndicate of Pakistani banks comprising National Bank of Pakistan, Habib Bank Limited and Standard Chartered Bank.
Would it mean any repite for the Karchiites? Or it would lead to another round of negotiations by KESC mangement to provide gas on subsidized rates? Would it mean that they would not be hiding behind the roudy employees and their in effectiveness to control such people and to keep giving lame excuses not be able to redress the complaints as they are helpless. Where is the Competition Commission of Pakistan for enabling KESC to create monoply and continue to keep the entire city as hostage ?
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