- CM congratulates Sindhis on their first major power project
Pakistan People’s Party (PPP) Chairman Bilawal Bhutto Zardari on Wednesday inaugurated the 100-megawatt power plant in Nooriabad.
Sindh Chief Minister Murad Ali Shah congratulated the people on the province’s first major power project.
He said that the Sindh government has taken several initiatives to eliminate load shedding in the province, particularly in Karachi to improve industries, the well-being of the residents of the city and for providing employment opportunities.
He added that besides major investment in the development of Thar Coalfield Block II, the Sindh government has provided major support to develop two 50 MW gas-fired power plants at Nooriabad on public-private partnership mode.
It may be noted that Nooriabad is about 85 km from the port city of Karachi and is connected by a major highway.
The chief minister said that 95 Km special purpose transmission line is also funded by the Sindh government through the Sindh Transmission and Dispatch Company (STDC) at a cost of Rs2 Billion.
Murad Ali Shah said that the gas is being allocated to the power projects through a decision by the Economic Coordination Committee (ECC) of the federal cabinet. He added that the gas quantity is 20 MMSCFD of pipeline quality capable of producing 100 MW, and that 50 acres of land have been acquired by the project companies.
Ownership structure
Speaking about the ownership of the project, the Sindh CM said that the project has been established through two Special Purpose Companies (SPC), including Sindh Nooriabad Power Company (SNPC) and Sindh Nooriabad Power Company Phase II (SNPC-II).
He added that Sindh government has assumed 49 percent of the equity and the private sector contractor Technomen Kinetics has subscribed to 51 percent of the equity.
Financing structure
Giving detail of financing structure, the Sindh CM said that the project is funded through 80 percent debt and 20 percent equity. He added that the debt is being provided by National Bank of Pakistan, Sindh Bank and Sindh Government Employees Pension Fund. The project cost is estimated at USD 130 million.
The chief minister said the commission of the power projects will be able to reduce load shedding significantly and would provide cheap electricity to the citizens of Karachi.
