Pakistan to import used power plants

Islamabad, Sep 27 (UNI) Pakistan's Water and Power Development Authority (WAPDA) has signed an agreement with the US-based GE Energy Rental to import a second-hand 150 MW power plant on three-year rental to overcome immediate power shortage.

The project, to be located near Sheikhupura, will start power generation by January 2007.

Dawn newspaper quoted sources as saying that WAPDA would divert natural gas from one of its power plants to the imported plant and pay about 3.133 cents per unit as capacity payment and provide fuel as well.

The overall tariff is expected to be over six cents per unit.

The sources said the GE Energy Rentals and WAPDA had inked the agreement last week for the supply of 150 MW (seven units of 21.5 MW each) on fast-track basis. The US firm will be responsible to operate, maintain and supply power to WAPDA.

This is the second agreement for import of pre-commissioned project from the US. Earlier, WAPDA had signed a similar agreement with US-based Alstom to import a 136 MW plant for installation at Bikki near Multan.

Facing over 1,400 MW shortfall in 2006 and expected increase in the shortage to over 5,000 MW by 2010, the Government had allowed WAPDA recently to import second-hand thermal power stations from the US to partially offset the energy crisis but the country will continue to face 800-1,200 MW shortfall at least for two years in peak summer.

An official said the quickest way to start additional power production was to import pre-commissioned plants from the US on three-year rent.

The Alstom plant is estimated to produce electricity at a tariff of about 3.2 cents per unit excluding fuel cost that would be borne by WAPDA and translate into an overall tariff of slightly over six cents per unit.

The energy crisis will, however, not be over until August 2008 because the next power plant to come on stream would be WAPDA's thermal plant with 340 MW production in August 2008 and another 160 MW by December 2008.

The sources said the commissioning of four 320 MW second-hand thermal stations donated by the United Arab Emirates was expected to start by the mid of next year. Of these, an 80 MW plant would be installed at Shahdra in WAPDA's jurisdiction and would take about 11 months, they said.

The plant was commissioned in the UAE in 1996. The dismantling, transportation to Pakistan and installation was being done by the UAE government as donation. The remaining three 1975 model plants of 80 MW each would be donated to Karachi and would take more than 15 months to start production, sources said.

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