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News Headlines for the month of
OCTOBER 2010

Additional 2,795 megawatts may be added to grid by December: Prime Minister

ISLAMABAD (October 30, 2010) : Prime Minister Yousaf Raza Gilani on Friday said an additional 2,795 megawatts of power is likely to be added to the national grid by December this year. "After democratic government took over, around 2000MW has been added to the national grid," said Prime Minister while addressing the closing ceremony of international conference on conservation, energy efficiency and solar," organised by Pakistan Engineering Council in collaboration with USAID. Chairperson, Pakistan Engineering Council and former Senator Rukhsana Zuberi and Dr Andrew Sisson, US Mission Director were also present on the occasion. The Prime Minister said it has been decided to construct 32 small and medium-size dams; eight in each province at a cost of Rs 250 billion. Work on the construction of six dams has already been started. "The Council of Common Interests has unanimously approved construction of Diamer Basha mega hydel project and its construction will start in near future," the Prime Minister said, adding that to exploit Thar coal reserves, a number of projects under Thar Coal Energy Board have been initiated. Talking to media, the Prime Minister said the country is confronted with many challenges such as law and order and economic recession, however the government would focus on giving relief to masses during its last two-and-a-half-year tenure. He said any suggestion of the Pakistan Muslim League (N) would be duly considered if given to the government. "About 80 percent of the Charter of Democracy (CoD) has been implemented and any new formula or suggestion if shared with the government could be deliberated upon," Gilani added. In reply to a question, the Prime Minister said the government is not afraid of any coalition of the Muslim Leagues, as all of them are their relatives. He said that the opposition should play its due role. He said the countries left behind in achieving Millennium Development Goals are those which have energy scarcity and Pakistan is one of them. This is also a fact that poorest of countries are the darkest of the countries on the globe. He said that when the elected government was formed in March 2008, the yawning gap between supply and demand of electricity had brought the industrial wheels to a standstill. People were forced to bear 12 hours to 18 hours power outages in the rural areas while urban dwellers were experiencing more than six hours loadshedding every day. This was the consequence of serious negligence of the previous regimes as not a single megawatt was added since 1997. The Prime Minister said women manage domestic energy use and would be interested in means of saving energy and reducing their household energy bills provided they had easy access to reliable information. An interactive service that offers useful information within the privacy of their own homes will allow them to reduce their energy costs while at the same time reduce the country's energy supply gap. In this connection, a scheme to set up Energy Information Centres will be launched, the Prime Minister added. He said that every energy consumer will be provided a contact number for getting information on energy efficiency. Their call will be answered by the centres, which will guide them how to conserve energy and reduce the bill. Dr Andrew Sisson addressing the ceremony said that solving the energy issue of Pakistan is top priority of the US and it was also discussed in the recently held strategic dialogue between the two countries. The US is working on narrowing the energy supply and demand gap.

Copyright Business Recorder, 2010

Top

Additional 2,795 megawatts may be added to grid by December: Prime Minister

ISLAMABAD (October 30, 2010) : Prime Minister Yousaf Raza Gilani on Friday said an additional 2,795 megawatts of power is likely to be added to the national grid by December this year. "After democratic government took over, around 2000MW has been added to the national grid," said Prime Minister while addressing the closing ceremony of international conference on conservation, energy efficiency and solar," organised by Pakistan Engineering Council in collaboration with USAID. Chairperson, Pakistan Engineering Council and former Senator Rukhsana Zuberi and Dr Andrew Sisson, US Mission Director were also present on the occasion. The Prime Minister said it has been decided to construct 32 small and medium-size dams; eight in each province at a cost of Rs 250 billion. Work on the construction of six dams has already been started. "The Council of Common Interests has unanimously approved construction of Diamer Basha mega hydel project and its construction will start in near future," the Prime Minister said, adding that to exploit Thar coal reserves, a number of projects under Thar Coal Energy Board have been initiated. Talking to media, the Prime Minister said the country is confronted with many challenges such as law and order and economic recession, however the government would focus on giving relief to masses during its last two-and-a-half-year tenure. He said any suggestion of the Pakistan Muslim League (N) would be duly considered if given to the government. "About 80 percent of the Charter of Democracy (CoD) has been implemented and any new formula or suggestion if shared with the government could be deliberated upon," Gilani added. In reply to a question, the Prime Minister said the government is not afraid of any coalition of the Muslim Leagues, as all of them are their relatives. He said that the opposition should play its due role. He said the countries left behind in achieving Millennium Development Goals are those which have energy scarcity and Pakistan is one of them. This is also a fact that poorest of countries are the darkest of the countries on the globe. He said that when the elected government was formed in March 2008, the yawning gap between supply and demand of electricity had brought the industrial wheels to a standstill. People were forced to bear 12 hours to 18 hours power outages in the rural areas while urban dwellers were experiencing more than six hours loadshedding every day. This was the consequence of serious negligence of the previous regimes as not a single megawatt was added since 1997. The Prime Minister said women manage domestic energy use and would be interested in means of saving energy and reducing their household energy bills provided they had easy access to reliable information. An interactive service that offers useful information within the privacy of their own homes will allow them to reduce their energy costs while at the same time reduce the country's energy supply gap. In this connection, a scheme to set up Energy Information Centres will be launched, the Prime Minister added. He said that every energy consumer will be provided a contact number for getting information on energy efficiency. Their call will be answered by the centres, which will guide them how to conserve energy and reduce the bill. Dr Andrew Sisson addressing the ceremony said that solving the energy issue of Pakistan is top priority of the US and it was also discussed in the recently held strategic dialogue between the two countries. The US is working on narrowing the energy supply and demand gap.

Copyright Business Recorder, 2010

Top

Additional 2,795 megawatts may be added to grid by December: Prime Minister

ISLAMABAD (October 30, 2010) : Prime Minister Yousaf Raza Gilani on Friday said an additional 2,795 megawatts of power is likely to be added to the national grid by December this year. "After democratic government took over, around 2000MW has been added to the national grid," said Prime Minister while addressing the closing ceremony of international conference on conservation, energy efficiency and solar," organised by Pakistan Engineering Council in collaboration with USAID. Chairperson, Pakistan Engineering Council and former Senator Rukhsana Zuberi and Dr Andrew Sisson, US Mission Director were also present on the occasion. The Prime Minister said it has been decided to construct 32 small and medium-size dams; eight in each province at a cost of Rs 250 billion. Work on the construction of six dams has already been started. "The Council of Common Interests has unanimously approved construction of Diamer Basha mega hydel project and its construction will start in near future," the Prime Minister said, adding that to exploit Thar coal reserves, a number of projects under Thar Coal Energy Board have been initiated. Talking to media, the Prime Minister said the country is confronted with many challenges such as law and order and economic recession, however the government would focus on giving relief to masses during its last two-and-a-half-year tenure. He said any suggestion of the Pakistan Muslim League (N) would be duly considered if given to the government. "About 80 percent of the Charter of Democracy (CoD) has been implemented and any new formula or suggestion if shared with the government could be deliberated upon," Gilani added. In reply to a question, the Prime Minister said the government is not afraid of any coalition of the Muslim Leagues, as all of them are their relatives. He said that the opposition should play its due role. He said the countries left behind in achieving Millennium Development Goals are those which have energy scarcity and Pakistan is one of them. This is also a fact that poorest of countries are the darkest of the countries on the globe. He said that when the elected government was formed in March 2008, the yawning gap between supply and demand of electricity had brought the industrial wheels to a standstill. People were forced to bear 12 hours to 18 hours power outages in the rural areas while urban dwellers were experiencing more than six hours loadshedding every day. This was the consequence of serious negligence of the previous regimes as not a single megawatt was added since 1997. The Prime Minister said women manage domestic energy use and would be interested in means of saving energy and reducing their household energy bills provided they had easy access to reliable information. An interactive service that offers useful information within the privacy of their own homes will allow them to reduce their energy costs while at the same time reduce the country's energy supply gap. In this connection, a scheme to set up Energy Information Centres will be launched, the Prime Minister added. He said that every energy consumer will be provided a contact number for getting information on energy efficiency. Their call will be answered by the centres, which will guide them how to conserve energy and reduce the bill. Dr Andrew Sisson addressing the ceremony said that solving the energy issue of Pakistan is top priority of the US and it was also discussed in the recently held strategic dialogue between the two countries. The US is working on narrowing the energy supply and demand gap.

Copyright Business Recorder, 2010

Top

'Government to award 16 megawatts Naltar power plant contract to HMC'

ISLAMABAD (October 30, 2010) : The government has decided to award 16 MW Naltar power project to Heavy Mechanical Complex (HMC), Texila. This was disclosed by the Minister for Industries and Production, Mir Hazar Khan Bijarani at a meeting of HMC's Board of Directors. The meeting was held here on Friday in the Committee room of the Ministry of Industries and Production. The meeting was presided over by Bijarani. The audited accounts for 2009-10 were presented and duly approved by the Board. As per audited accounts the company achieved highest ever sale of Rs 1983 million and made gross profit of Rs 202 million and net profit of Rs 3.1 million.The Board was informed that the Government has decided to award a contract to HMC on turn key basis for a 16MW Naltar hydro power project. The project will be executed by HMC as a model project to develop expertise of indigenous manufacturing of hydropower projects in the country. It may be relevant to mention here that Pakistan has a potential of 50,000 MW hydropower generations but due to lack of local experience this potential is untapped and the country is facing serious energy crisis. The Minister while appreciating the bold decision taken by the present government hoped that this decision will go a long way in creating local capability for production of power generation machinery and execution of complete projects on the turn key basis. The Board was informed that PC-I's for establishment of design institute for energy sector and establishment of turbine and power plant equipment manufacturing facility at HMC Taxila were in the Planning Commission. The proposals have been cleared by pre-CDWP and will now be presented to CDWP in its next meeting.

Copyright Business Recorder, 2010

Top

'Government to award 16 megawatts Naltar power plant contract to HMC'

ISLAMABAD (October 30, 2010) : The government has decided to award 16 MW Naltar power project to Heavy Mechanical Complex (HMC), Texila. This was disclosed by the Minister for Industries and Production, Mir Hazar Khan Bijarani at a meeting of HMC's Board of Directors. The meeting was held here on Friday in the Committee room of the Ministry of Industries and Production. The meeting was presided over by Bijarani. The audited accounts for 2009-10 were presented and duly approved by the Board. As per audited accounts the company achieved highest ever sale of Rs 1983 million and made gross profit of Rs 202 million and net profit of Rs 3.1 million.The Board was informed that the Government has decided to award a contract to HMC on turn key basis for a 16MW Naltar hydro power project. The project will be executed by HMC as a model project to develop expertise of indigenous manufacturing of hydropower projects in the country. It may be relevant to mention here that Pakistan has a potential of 50,000 MW hydropower generations but due to lack of local experience this potential is untapped and the country is facing serious energy crisis. The Minister while appreciating the bold decision taken by the present government hoped that this decision will go a long way in creating local capability for production of power generation machinery and execution of complete projects on the turn key basis. The Board was informed that PC-I's for establishment of design institute for energy sector and establishment of turbine and power plant equipment manufacturing facility at HMC Taxila were in the Planning Commission. The proposals have been cleared by pre-CDWP and will now be presented to CDWP in its next meeting.

Copyright Business Recorder, 2010

Top

Turkish ''power ship'' to provide 232 megawatts electricity to KESC

ISLAMABAD (October 28, 2010) : The 'Power Ship' dedicated for Pakistan is scheduled to arrive next month in Karachi to provide electricity to Genco-IV through the Karachi Electric Supply Company (KESC) network at the Korangi Thermal Power Station to meet power shortage in the business hub of the country. The world largest power ship called 'Karadeniz Power Ship Kaya Bey' owned KARKEY Karadeniz Elektrik Uretim A.S will start voyage from Turkey to Pakistan in the next few days. According to reliable sources, KARKEY has signed Rental Services Contract with Lakhra Power Generation Company (Pakistan Electric Power Company Pepco) "the Rental services for 231.8MW net based on diesel generating sets for 60 months and operation and maintenance services at 132 kV grid". Sources told this scribe here on Wednesday that "the concept of "Power Ship" was developed to provide the most reliable, midterm power solution with optimum cost for the increased electricity demand countries. The timing of the ship voyage from Turkey is very crucial to reach the Pakistani territories to launch first of its kind of biggest power supply project through new concept of power ship," sources maintained. The main advantages of the Power Ship solution for Pakistan included mid-term solution to avoid electricity shortage and operation is also possible in areas with poor logistic infrastructure and unaffected by landslides or earthquakes and similar natural disasters. As soon as Power Ship reaches Pakistan, it would start the supply of electricity to Pakistani people. "In this regard, all legal formalities and preparations have been finalised for immediate supply of electricity on arrival of ship to Karachi, sources said. Following the announcement of the Private Power and Infrastructure Board (PPIB) for "Solicitation for Fast Track IPP and Rental Power Projects through International Competitive Bidding", company procured the tender documents and started the preparations to join the tender. After technical evaluation, KARKEY was notified as "Responsive Bidder", and notified as "Qualified Bidder" and subsequently "Letter of Award" was issued. For interconnection facilities after the site was allotted by Port Qasim Authority, erection of the Tower KPS-1 was completed by KARKEY to connect Power ship to the Karachi grid and the related interconnection Protection Panels were produced and delivered to the buyer. Sources said that the concurrent with the site preparations, KARKEY applied for and Environmental Impact Assessment (EIA) on January 2010 from Environmental Protection Agency and received EIA No Objection Certificate (NOC) in April 2010. Company official informed that there were still few pending issues attributable to different parties in Pakistan to complete the import and interconnection of power which will be completely expeditiously. The most important area of dredging was completed on June 10, 2010 by Karachi port Trust (KPT). The major electrical tower and interconnection facilities have been constructed following 82,000 m3 of dredging at the site. Regarding the operations in Pakistan, agreements were executed between KARKEY and Orient Energy Systems (OES) to receive services including the complete package of operation and maintenance services with respect to the Plants. Also an agreement between KARKEY and "M" International Services (PVT) LTD. were executed to provide general shipping agency as required for the port authorities. It is important to mention that the different from the IPPs and RPPs being constructed on land, the construction of the Power ship was completed in the Shipyard in a suitable manner to the preparations and readiness of the Buyer to receive power. For this reason it was not possible to observe the progress of the project, sources added.

Copyright Business Recorder, 2010

Top

Turkish ''power ship'' to provide 232 megawatts electricity to KESC

ISLAMABAD (October 28, 2010) : The 'Power Ship' dedicated for Pakistan is scheduled to arrive next month in Karachi to provide electricity to Genco-IV through the Karachi Electric Supply Company (KESC) network at the Korangi Thermal Power Station to meet power shortage in the business hub of the country. The world largest power ship called 'Karadeniz Power Ship Kaya Bey' owned KARKEY Karadeniz Elektrik Uretim A.S will start voyage from Turkey to Pakistan in the next few days. According to reliable sources, KARKEY has signed Rental Services Contract with Lakhra Power Generation Company (Pakistan Electric Power Company Pepco) "the Rental services for 231.8MW net based on diesel generating sets for 60 months and operation and maintenance services at 132 kV grid". Sources told this scribe here on Wednesday that "the concept of "Power Ship" was developed to provide the most reliable, midterm power solution with optimum cost for the increased electricity demand countries. The timing of the ship voyage from Turkey is very crucial to reach the Pakistani territories to launch first of its kind of biggest power supply project through new concept of power ship," sources maintained. The main advantages of the Power Ship solution for Pakistan included mid-term solution to avoid electricity shortage and operation is also possible in areas with poor logistic infrastructure and unaffected by landslides or earthquakes and similar natural disasters. As soon as Power Ship reaches Pakistan, it would start the supply of electricity to Pakistani people. "In this regard, all legal formalities and preparations have been finalised for immediate supply of electricity on arrival of ship to Karachi, sources said. Following the announcement of the Private Power and Infrastructure Board (PPIB) for "Solicitation for Fast Track IPP and Rental Power Projects through International Competitive Bidding", company procured the tender documents and started the preparations to join the tender. After technical evaluation, KARKEY was notified as "Responsive Bidder", and notified as "Qualified Bidder" and subsequently "Letter of Award" was issued. For interconnection facilities after the site was allotted by Port Qasim Authority, erection of the Tower KPS-1 was completed by KARKEY to connect Power ship to the Karachi grid and the related interconnection Protection Panels were produced and delivered to the buyer. Sources said that the concurrent with the site preparations, KARKEY applied for and Environmental Impact Assessment (EIA) on January 2010 from Environmental Protection Agency and received EIA No Objection Certificate (NOC) in April 2010. Company official informed that there were still few pending issues attributable to different parties in Pakistan to complete the import and interconnection of power which will be completely expeditiously. The most important area of dredging was completed on June 10, 2010 by Karachi port Trust (KPT). The major electrical tower and interconnection facilities have been constructed following 82,000 m3 of dredging at the site. Regarding the operations in Pakistan, agreements were executed between KARKEY and Orient Energy Systems (OES) to receive services including the complete package of operation and maintenance services with respect to the Plants. Also an agreement between KARKEY and "M" International Services (PVT) LTD. were executed to provide general shipping agency as required for the port authorities. It is important to mention that the different from the IPPs and RPPs being constructed on land, the construction of the Power ship was completed in the Shipyard in a suitable manner to the preparations and readiness of the Buyer to receive power. For this reason it was not possible to observe the progress of the project, sources added.

Copyright Business Recorder, 2010

Top

UNESCAP proposes energy collaboration among Asian states

ISLAMABAD (October 28, 2010) : United Nations Economic and Social Commission for Asia and the Pacific (Unescap) has initiated a proposal for collaboration in the area of energy efficiency in selected Asian countries being implemented through South Asian Association for Regional Co-operation (Saarc). According to sources, it was revealed in 5th meeting of the Saarc Energy Centre's Board of Governors, held on Tuesday night that was also attended by dignitaries from the member countries. It was informed that Saarc Energy Centre had undertaken many activities since 2007. "Energy Centre has prepared Term of Reference (ToR) for developing Framework Agreement on energy co-operation," sources said adding that Board emphasised to prepare action plan. Board observed that review of electricity laws was underway with support of Saarc Japan Special Fund. Meanwhile, according to a statement, the Federal Minister for Petroleum and Natural Resources Syed Naveed Qamar has said that Pakistan attached immense value to its relations with the Saarc countries and the regional association held tremendous potential for co-operation especially in the field of energy. Syed Naveed Qamar expressed these views while addressing meeting of Saarc Energy Centre's Board of Governors. Naveed Qamar said that the upcoming cross-border pipelines such as the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline were a living example of how regional countries can come together to not just negotiate but actually create a united forum for import of energy. He said, highlighting the benefits of pooling of resources for collective benefit, that provision of energy in a manner that was both sustainable and affordable was vital to the regional countries, being by and large energy importing countries. The Minister on the occasion said that the Saarc region shared not only geographical proximity and a common history but also their socio-economic challenges were similar in nature, adding that platforms such as the Saarc Energy Centre offered opportunities to share best practices and learn from mutual experiences to collectively find answers to the problems challenging the regional countries in their quest for energy. While commenting on the performance of the Saarc Energy Centre (SEC) he said that the foundation of creating any kind of synergy on the level of Saarc started from research that was taking place at its Energy Centre. He said that the centre had made progress adding that it should strive to be a'living organism' and to move and respond to the challenges of the time so that the efforts result in much more prosperous South Asia. The decision to establish Saarc Energy Centre was taken in October 2005 with the mandate to initiate, co-ordinate and facilitate Saarc programme in energy sector. Its role has become more significant with increasing focus on energy co-operation among Saarc countries following the 12th Summit in the year 2004. The energy centre has undertaken a series of activities such as developing the concept of Saarc Energy Ring (which provides a road map for energy co-operation among Saarc countries), contributed in preparation of Saarc plan of action in energy efficiency and conservation and remains actively engaged in Saarc Regional Energy Trade Study with the assistance of ADB.

Copyright Business Recorder, 2010

Top

UNESCAP proposes energy collaboration among Asian states

ISLAMABAD (October 28, 2010) : United Nations Economic and Social Commission for Asia and the Pacific (Unescap) has initiated a proposal for collaboration in the area of energy efficiency in selected Asian countries being implemented through South Asian Association for Regional Co-operation (Saarc). According to sources, it was revealed in 5th meeting of the Saarc Energy Centre's Board of Governors, held on Tuesday night that was also attended by dignitaries from the member countries. It was informed that Saarc Energy Centre had undertaken many activities since 2007. "Energy Centre has prepared Term of Reference (ToR) for developing Framework Agreement on energy co-operation," sources said adding that Board emphasised to prepare action plan. Board observed that review of electricity laws was underway with support of Saarc Japan Special Fund. Meanwhile, according to a statement, the Federal Minister for Petroleum and Natural Resources Syed Naveed Qamar has said that Pakistan attached immense value to its relations with the Saarc countries and the regional association held tremendous potential for co-operation especially in the field of energy. Syed Naveed Qamar expressed these views while addressing meeting of Saarc Energy Centre's Board of Governors. Naveed Qamar said that the upcoming cross-border pipelines such as the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline were a living example of how regional countries can come together to not just negotiate but actually create a united forum for import of energy. He said, highlighting the benefits of pooling of resources for collective benefit, that provision of energy in a manner that was both sustainable and affordable was vital to the regional countries, being by and large energy importing countries. The Minister on the occasion said that the Saarc region shared not only geographical proximity and a common history but also their socio-economic challenges were similar in nature, adding that platforms such as the Saarc Energy Centre offered opportunities to share best practices and learn from mutual experiences to collectively find answers to the problems challenging the regional countries in their quest for energy. While commenting on the performance of the Saarc Energy Centre (SEC) he said that the foundation of creating any kind of synergy on the level of Saarc started from research that was taking place at its Energy Centre. He said that the centre had made progress adding that it should strive to be a'living organism' and to move and respond to the challenges of the time so that the efforts result in much more prosperous South Asia. The decision to establish Saarc Energy Centre was taken in October 2005 with the mandate to initiate, co-ordinate and facilitate Saarc programme in energy sector. Its role has become more significant with increasing focus on energy co-operation among Saarc countries following the 12th Summit in the year 2004. The energy centre has undertaken a series of activities such as developing the concept of Saarc Energy Ring (which provides a road map for energy co-operation among Saarc countries), contributed in preparation of Saarc plan of action in energy efficiency and conservation and remains actively engaged in Saarc Regional Energy Trade Study with the assistance of ADB.

Copyright Business Recorder, 2010

Top

Government planning to hold national summits on energy crisis

ISLAMABAD (October 28, 2010) : The College of Electrical and Mechanical Engineering (CEME) organized the international conference on 'Energy Systems Engineering' (ICESE-2010) on Wednesday. Minister for Science and Technology Azam Sawati chaired the opening session. A large number of foreign and local dignitaries and scholars attended the sessions. In his address to opening session, minister said the government had given priority to energy sector and climate change. He said the government was planning to hold national summits to develop consensus on energy crisis. He highlighted the role of the Ministry of Environment, the Environment Protection Agency, the Pakistan Atomic Energy Commission, the Alternative Energy Board, and the Pakistan Council for Renewable Energy Technologies in implementing the government policies related to energy and environment. The minister appreciated that the college had a well-established programme in energy particularly solar, wind and hydro energy. Rear Admiral M Mushtaq (Retd), Pro-Rector, National University of Sciences and Technology (NUST) said that the varsity was considered as a research intensive institution throughout the world. Major General M Shahid, HI (M), Commandant of the College of E&ME highlighted the contribution of the college related to energy. Professor Dr Afzaal Malik, the Associate Dean and the Conference Chair, explained the salient features of the conference. The three-day conference covered a wide range of topics alternate ways of energy. The key speakers of the conference were Dr Paul Jonathan Hogg from university of Manchester UK, Dr Kendra Sharp from Oregon State University USA, Dr John Furze Energy advisor Holme Bygade Denmark, Dr Murtaza Hashmi VTT Technical Research centre Finland and local scholars and engineers. Important topics regarding the energy crisis and how to overcome them were also discussed in the three-day conference. The participants presented different research work that showed very potential in alternative energy sources such as wind, solar, thermal, Bio, Hydro and other resources present in Pakistan. Energy reserves of Pakistan and dependence on exports were also discussed. The International delegation showed their interest in both small and large-scale investments for different projects. The projects included economical and easy to build power generation equipment that can be produced on local level easily. The foreign delegates showed their keen interest in the work done by the engineers of Pakistan and wanted to further collaborate with them in different research works and papers. They also requested to get invited in coming conferences. A large number of students as well as people from different fields of life participated in the conference making it a huge success.

Copyright Business Recorder, 2010

Top

Government planning to hold national summits on energy crisis

ISLAMABAD (October 28, 2010) : The College of Electrical and Mechanical Engineering (CEME) organized the international conference on 'Energy Systems Engineering' (ICESE-2010) on Wednesday. Minister for Science and Technology Azam Sawati chaired the opening session. A large number of foreign and local dignitaries and scholars attended the sessions. In his address to opening session, minister said the government had given priority to energy sector and climate change. He said the government was planning to hold national summits to develop consensus on energy crisis. He highlighted the role of the Ministry of Environment, the Environment Protection Agency, the Pakistan Atomic Energy Commission, the Alternative Energy Board, and the Pakistan Council for Renewable Energy Technologies in implementing the government policies related to energy and environment. The minister appreciated that the college had a well-established programme in energy particularly solar, wind and hydro energy. Rear Admiral M Mushtaq (Retd), Pro-Rector, National University of Sciences and Technology (NUST) said that the varsity was considered as a research intensive institution throughout the world. Major General M Shahid, HI (M), Commandant of the College of E&ME highlighted the contribution of the college related to energy. Professor Dr Afzaal Malik, the Associate Dean and the Conference Chair, explained the salient features of the conference. The three-day conference covered a wide range of topics alternate ways of energy. The key speakers of the conference were Dr Paul Jonathan Hogg from university of Manchester UK, Dr Kendra Sharp from Oregon State University USA, Dr John Furze Energy advisor Holme Bygade Denmark, Dr Murtaza Hashmi VTT Technical Research centre Finland and local scholars and engineers. Important topics regarding the energy crisis and how to overcome them were also discussed in the three-day conference. The participants presented different research work that showed very potential in alternative energy sources such as wind, solar, thermal, Bio, Hydro and other resources present in Pakistan. Energy reserves of Pakistan and dependence on exports were also discussed. The International delegation showed their interest in both small and large-scale investments for different projects. The projects included economical and easy to build power generation equipment that can be produced on local level easily. The foreign delegates showed their keen interest in the work done by the engineers of Pakistan and wanted to further collaborate with them in different research works and papers. They also requested to get invited in coming conferences. A large number of students as well as people from different fields of life participated in the conference making it a huge success.

Copyright Business Recorder, 2010

Top

Khan Khwar Hydropower Project successfully put on test-run

LAHORE (October 28, 2010) : 72-MW Khan Khwar Hydropower Project has successfully been put on the test-run after its completion by Wapda with a cost of Rs 8.3 billion. The project, which is already contributing to the National Grid, is likely to start its commercial operation in couple of weeks. Khan Khwar Hydropower Project has been constructed on Khan Khwar (river), a tributary of the River Indus near Besham in District Shangla of Khyber Pakhtunkhwa province. The project is estimated to generate about 306 million units of electricity per annum. Khan Khawar Hydropower Project is one of the three high-head hydropower projects, being constructed by Wapda. The other two projects, namely Duber Khwar of 130 MW and Allai Khawar of 121 MW, are also nearing completion and expected to start electricity generation next year. It is pertinent to mention that Wapda is vigorously working on a number of hydropower projects with a view to adding least-cost electricity to the National Grid. 96-MW Jinnah Hydropower Project will start generating electricity next year, while construction work on 969-MW Neelum-Jhelum Hydroelectric Project is in full swing and likely to be completed in 2016. Work on 4500-MW Diamer-Basha Dam Project will commence next month with initiation of construction work on Wapda offices and staff colonies for the project.

Copyright Business Recorder, 2010

Top

Khan Khwar Hydropower Project successfully put on test-run

LAHORE (October 28, 2010) : 72-MW Khan Khwar Hydropower Project has successfully been put on the test-run after its completion by Wapda with a cost of Rs 8.3 billion. The project, which is already contributing to the National Grid, is likely to start its commercial operation in couple of weeks. Khan Khwar Hydropower Project has been constructed on Khan Khwar (river), a tributary of the River Indus near Besham in District Shangla of Khyber Pakhtunkhwa province. The project is estimated to generate about 306 million units of electricity per annum. Khan Khawar Hydropower Project is one of the three high-head hydropower projects, being constructed by Wapda. The other two projects, namely Duber Khwar of 130 MW and Allai Khawar of 121 MW, are also nearing completion and expected to start electricity generation next year. It is pertinent to mention that Wapda is vigorously working on a number of hydropower projects with a view to adding least-cost electricity to the National Grid. 96-MW Jinnah Hydropower Project will start generating electricity next year, while construction work on 969-MW Neelum-Jhelum Hydroelectric Project is in full swing and likely to be completed in 2016. Work on 4500-MW Diamer-Basha Dam Project will commence next month with initiation of construction work on Wapda offices and staff colonies for the project.

Copyright Business Recorder, 2010

Top

Tajikistan to provide energy, power to Pakistan

ISLAMABAD (October 24, 2010) : During the first session of quadrilateral meeting on trade and economics held in Moscow, Tajikistan showed interest to provide energy and power to Pakistan. The meeting was attended by Federal Minister for commerce Makhdoom Amin Fahim, E. S Nabuillina Minister for Foreign Trade and Economic of Russian Federation, F. M Hamraliev Minister of Trade and Economic of Tajikistan and A.H Argandival Minister of Trade and Commerce of Afghanistan. The ministers agreed to form a joint working group for the joint ventures of the four countries. The proposed working groups would be in the fields of energy, transportation, agriculture and food sectors, said a press release issued here on Saturday. Makhdoom Amin Fahim raised the issue of facilitating Pakistani businessmen for their exports to Russia, Tajikistan and other Central Asian states. He highlighted Pakistan's important exports like textile products, fruits, vegetables and leather garments to the Central Asian States. All the Ministers agreed to work for stability and economic growth of the region. Makhdoom Amin Fahim had also participated in bilateral meetings with Trade and Economic Ministers of Tajikistan, Russian Federation and Afghanistan on his arrival in Moscow.

Copyright Associated Press of Pakistan, 2010

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Tajikistan to provide energy, power to Pakistan

ISLAMABAD (October 24, 2010) : During the first session of quadrilateral meeting on trade and economics held in Moscow, Tajikistan showed interest to provide energy and power to Pakistan. The meeting was attended by Federal Minister for commerce Makhdoom Amin Fahim, E. S Nabuillina Minister for Foreign Trade and Economic of Russian Federation, F. M Hamraliev Minister of Trade and Economic of Tajikistan and A.H Argandival Minister of Trade and Commerce of Afghanistan. The ministers agreed to form a joint working group for the joint ventures of the four countries. The proposed working groups would be in the fields of energy, transportation, agriculture and food sectors, said a press release issued here on Saturday. Makhdoom Amin Fahim raised the issue of facilitating Pakistani businessmen for their exports to Russia, Tajikistan and other Central Asian states. He highlighted Pakistan's important exports like textile products, fruits, vegetables and leather garments to the Central Asian States. All the Ministers agreed to work for stability and economic growth of the region. Makhdoom Amin Fahim had also participated in bilateral meetings with Trade and Economic Ministers of Tajikistan, Russian Federation and Afghanistan on his arrival in Moscow.

Copyright Associated Press of Pakistan, 2010

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Coal-fired power plants to get incentives available to IPPs

ISLAMABAD (October 24, 2010) : The government has decided to extend all incentives to coal-fired power plants that are enjoyed by the Independent Power Producers (IPPs), sources close to Secretary, Board of Investment (BoI) told Business Recorder. Other incentives which have been approved by the Economic Co-ordination Committee (ECC) of the Cabinet for coal based projects are as follows: (i) Thar coalfield be declared as Special Economic Zone (SEZ) and the projects of development of Thar (also including coal mining and power generation) be declared as " projects of national security; (ii) 20 percent (dollar based) Internal Rate of Return (IRR) to firms which achieve financial close before December 31, 2015 for mining and power projects based on indigenous coal and additional half a percentage IRR ie 20.5 percent IRR for firms which achieve financial close by or before December 31, 2014; (iii) zero percent customs duty on import of coal mining equipment and machinery including vehicles for site use; (iv) exemption on withholding tax to shareholders on dividend for initial 30 years; (v) exemption on withholding tax on procurement for goods and services during project construction and operations; and; (vi) exemption for 30 years on other levies including special excise duty, federal excise duty, WPPF and WWF. In addition to these incentives, coal based power projects and coal mining projects in Sindh will have the same incentives, concessions, protections and security package as that available to IPPs developed pursuant to Power Generation Policy 2002 (as amended from time to time). Thar Coal and Energy Board Sindh will also function as the coal pricing agency, sources said.

Copyright Business Recorder, 2010

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132 KV Rawal Grid Station: IESCO installs new power transformer

ISLAMABAD (October 23, 2010) : Islamabad Electric Supply Company (IESCO) is installing new power transformer of 40 MVA here at 132 KV Rawal Grid Station. The work of installation would be started today (Saturday) 7am, which would be completed on Sunday up to 10am. The power supply to the connected feeders from said power transformer would be provided through alternate sources. The concerned feeders are Parliament House feeder, Super Market feeder, Frontier House feeder, Pak-Secretariat-I & II feeder, Parliament Lodges feeder, Awan-e-Sadder feeder and Prim Minister House feeder. However due to unavoidable circumstances power interruption can be occurred on these feeders.-PR

Copyright Business Recorder, 2010

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132 KV Rawal Grid Station: IESCO installs new power transformer

ISLAMABAD (October 23, 2010) : Islamabad Electric Supply Company (IESCO) is installing new power transformer of 40 MVA here at 132 KV Rawal Grid Station. The work of installation would be started today (Saturday) 7am, which would be completed on Sunday up to 10am. The power supply to the connected feeders from said power transformer would be provided through alternate sources. The concerned feeders are Parliament House feeder, Super Market feeder, Frontier House feeder, Pak-Secretariat-I & II feeder, Parliament Lodges feeder, Awan-e-Sadder feeder and Prim Minister House feeder. However due to unavoidable circumstances power interruption can be occurred on these feeders.-PR

Copyright Business Recorder, 2010

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Environment Ministry finalizes energy conservation law

ISLAMABAD (October 22, 2010) : The Ministry of Environment has finalized energy conservation law, which is likely to be placed in the cabinet for approval. This was stated by Minister for Environment Hameed Ullah Jan Afridi while addressing the inaugural session of two-day international conference on "climate change and development" organized by Ministry of Environment in collaboration with United Nations here on Thursday. The minister also announced that climate change policy would be placed next year after going into extensive consultative process. "The climate change has serious global implications for Pakistan, as manifested during the last few years in shape of earthquake and devastating flood. Pakistan has suffered from worst draught, strong heat waves, cyclones, erratic monsoons, glaciers melting and devastating heavy rains in the recent history", Afridi added. He further said that global warming is haunting the world at large and South Asia in particular. During last few years, climate change has become a major world-wide concern, the minister added. "Ministry of Environment has focused on developing a long term strategic framework for climate change and striving to improve the capacity of the national and provincial governance," said Afridi, adding that Pakistan has been proactively leading the on-going international negotiations at the United Nations Framework Convention for Climate Change. As the Chair of G-77 China and Pakistan played a constructive role in seeking consensus on the Bali Plan of Action, he added. Afridi urged that the time has now come to realise the need to mainstream climate change concerns into the larger development paradigm. The Ministry is focusing on developing a long term strategic framework for climate change focusing mainly on adaptation needs, to provide a sustainable basis for socio-economic growth in consultation with the relevant stakeholders including the public and private sector, he added. The minister further said that Ministry of Environment is actively endeavouring to create a framework, which could spark relevant and specific policies and interventions needed to address the issue of environment through increased institutional capacity, mainstreaming environmental concerns in development planning for sustainable growth and generally improving the quality of life by decreasing poverty and arresting environmental degradation. He also hoped that through this conference common understanding would be developed to meet the challenges and threats posed by climate change.

Copyright Business Recorder, 2010

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CHASNUPP-1 completes 10 years of successful operation

CHASHMA BARRAGE (October 22, 2010) : A simple but dignified ceremony was held at Chashma site on Thursday to commemorate the achievements and good performance of C-1 as it completes 10 years of operation. Lieutenant General Khalid Ahmed Kidwai (Retd), Director General (Strategic Plans Division) was the chief guest at the occasion and the function was attended by Chairman Pakistan Atomic Energy Commission (PAEC), Chairman, Pakistan Nuclear Regulatory Authority (PNRA), Member Power, PAEC and other dignitaries besides plant management and personnel. During his address, the chief guest applauded the achievements and good performance of C-1 and specifically appreciated the efforts of plant personnel to indigence its operation and maintenance activities. He said that the good performance of C-1 facilitated government approval for initiating new projects in the nuclear power sector. He also appreciated the friendly support of People's Republic of China in the Nuclear Power Programme of Pakistan. He remarked that he is optimistic of achieving the 8,800 MWe target given to PAEC. During his introductory speech, Safder Habib, Director General of Chashma Nuclear Power Generating Station informed that C-1 has achieved a very high capacity factor during 2009 and that plant capacity and availability factors following Sixth Refuelling Outage are 93 and 98 percent respectively.-PR

Copyright Business Recorder, 2010

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Pakistan committed to introducing reforms in power sector: Ashraf

WASHINGTON (October 22, 2010) : Pakistan is committed to reforms in the power sector including granting autonomy to power generating and distributing companies, Federal Minister for Water and Power Raja Pervaiz Ashraf said after discussing co-operation in the sector under strategic partnership with the United States. "The government believes that giving autonomy for these companies is imperative to make them efficient," he told journalists after leading talks in the energy sector-working group. The minister said the International Monetary Fund officials appreciated the Pakistani resolve to reforms, in the power sector as a "step in the positive direction." "The board of governors of power generating and distributing companies will be strengthened and we will bring experts from the private sector who can make these companies into financially viable." Ashraf said the government intends to complete this reforms process by next June. In the first phase, he said, four companies, those of Lahore, Faisalabad, Gujranwala and Islamabad, will be made independent. "We want to bring visionary people, who will run these companies on professional lines because we want to overcome the huge gap between power generation and the services (which is Rs 20 billion every month). Through these reforms we will be able to move towards affordable electricity." Food and Agriculture Minister Nazar Muhammad Gondal told the newsmen that the working group approved allocations for various agricultural projects including nine million dollars for wheat production and rust disease prevention, nine million dollars for cotton production and disease prevention, nine million dollars for prevention of food and disease in livestock and some other programmes in the agriculture sector.

Copyright Associated Press of Pakistan, 2010

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Award of 1100 megawatts project: power Ministry seeks ECC''s clearance

ISLAMABAD (October 15, 2010) : The Ministry of Water and Power has reportedly sought clearance from the Economic Co-ordination Committee (ECC) of the cabinet for 1100 MW Kohala hydropower project awarded to a Chinese firm without solicitation through advertisement, well-informed sources in PPIB told Business Recorder. A Memorandum of Understanding (MoU) was agreed on October 16, 2008 in Beijing China between the Ministry of Water and Power, Government of Pakistan and M/s China International Water and Electric Corporation (M/s CWE) for further implementation, of 1100 MW Kohala hydropower project located on River Jehlum in Azad Jammu & Kashmir (AJ&K). Earlier, the project was approved by Executive Committee of National Economic Council (Ecnec) on August 23, 2006, for carrying out feasibility study, detailed engineering, design and tender documents through Water and Power Development Authority (Wapda). The cabinet considered the summary submitted by Ministry of Water and Power on November 18, 2009 and accorded its ex-post approval to the MoU. Since the project is located in AJ&K, the AJ&K Council secretariat on July 31, 2009 conveyed approval of the AJ&K Council for development of the project, in accordance with the terms of MoU, through PPIB under the Policy for Power Generation 2002 The sources said, to implement the project on a fast track basis and in order to finalise and execute a formal agreement, PPIB through a Letter of Interest (LoI) to CWE January 15, 2009 granted in principle approval for implementation of the project in the private sector. It is further provided in the LoI, that prior to issuance of Letter of Support (LoS) under Power Policy 2002, the audited cost of the feasibility study shall be reimbursed by M/s CWE to WAPDA and that LoS will be issued after approval of the project by the GoP. Pursuant to the terms and conditions of the LoI, M/s CWE has successfully updated, to the satisfaction of Panel of Experts (PoEs) drawn from public and private sectors, feasibility study for the project earlier partially carried out by WAPDA, within stipulated time of nine months, at no risk and cost to, and without any obligation on the part of GoP. Power Policy 2002 permits and authorises processing by PPIB of raw site hydropower projects on unsolicited basis; however, ECC through its decision in Case No 126/8/2005 September 1, 2005 while considering "amendments in the Policy for Power Generation 2002 to meet the accelerated power demand in the country" approved the proposal that "for raw hydel and coal site projects, expression of interest will be invited through advertisement in the press and the sponsors, who submit the best proposal, as decided by PPIB Board, will be issued LoI for the feasibility study." However, deterioration of the fuel mix for power generation has forced an increase in power tariffs to such a point where affordability has become a major issue. The energy produced from hydropower projects is generally in the range of 7-8 cent/kWh and in the present pricing structure, the project would decrease the tariff reasonably; and after completion of the concession period will reduce the tariff drastically. In addition to this, the project would save the country foreign exchange of about $200 million per month on a perpetual basis. It may also be noted that only 10 percent hydel potential (over 60,000 MW hydro generations in total) of Pakistan is currently being utilised. As such, the early completion of this project should be a national priority and in public interest. According to sources, given the financial crunch and situation in the international money market coupled with the security concerns in Pakistan, it would be very difficult to fund a project of this size in the public sector. The Public Sector Development Program (PSDP) is unlikely to be able to support such a large development in the near future despite the fact that it would actually increase resource availability in Pakistan at a quarter of the cost currently being incurred. At this juncture if a Chinese firm is committed to implement the project in the private sector and also prepared to finance it, the government needs to encourage it. In view of this perspective, the Board of PPIB in its meeting held on 9th April 2009 approved the issuance of LoI to CWE and recommended waivers in relation to certain codal formalities of the Power Policy 2002. Now that review and updating of the feasibility study by M/s CWE is complete, it is in process of submitting tariff petition to NTDC/ NEPRA for tariff determination subsequent to which LoS is due to be issued. Following submissions are made for consideration of the ECC: (i) WAPDA to prepare and finalise, through internationally reputable firm of auditors, all audited costs of the feasibility study incurred by it for reimbursement by M/s CWE prior to the issuance of LoS; (ii) authorisation of LoS to M/s CWE for development and implementation of the Project under Power Policy 2002 on boot basis; and (iii) waiver to the requirement for solicitation through advertisement as the Project was awarded to M/s CWE pursuant to MoU duly approved by the cabinet and Ecnec decision to carry out the Project in public sector.

Copyright Business Recorder, 2010

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Award of 1100 megawatts project: power Ministry seeks ECC''s clearance

ISLAMABAD (October 15, 2010) : The Ministry of Water and Power has reportedly sought clearance from the Economic Co-ordination Committee (ECC) of the cabinet for 1100 MW Kohala hydropower project awarded to a Chinese firm without solicitation through advertisement, well-informed sources in PPIB told Business Recorder. A Memorandum of Understanding (MoU) was agreed on October 16, 2008 in Beijing China between the Ministry of Water and Power, Government of Pakistan and M/s China International Water and Electric Corporation (M/s CWE) for further implementation, of 1100 MW Kohala hydropower project located on River Jehlum in Azad Jammu & Kashmir (AJ&K). Earlier, the project was approved by Executive Committee of National Economic Council (Ecnec) on August 23, 2006, for carrying out feasibility study, detailed engineering, design and tender documents through Water and Power Development Authority (Wapda). The cabinet considered the summary submitted by Ministry of Water and Power on November 18, 2009 and accorded its ex-post approval to the MoU. Since the project is located in AJ&K, the AJ&K Council secretariat on July 31, 2009 conveyed approval of the AJ&K Council for development of the project, in accordance with the terms of MoU, through PPIB under the Policy for Power Generation 2002 The sources said, to implement the project on a fast track basis and in order to finalise and execute a formal agreement, PPIB through a Letter of Interest (LoI) to CWE January 15, 2009 granted in principle approval for implementation of the project in the private sector. It is further provided in the LoI, that prior to issuance of Letter of Support (LoS) under Power Policy 2002, the audited cost of the feasibility study shall be reimbursed by M/s CWE to WAPDA and that LoS will be issued after approval of the project by the GoP. Pursuant to the terms and conditions of the LoI, M/s CWE has successfully updated, to the satisfaction of Panel of Experts (PoEs) drawn from public and private sectors, feasibility study for the project earlier partially carried out by WAPDA, within stipulated time of nine months, at no risk and cost to, and without any obligation on the part of GoP. Power Policy 2002 permits and authorises processing by PPIB of raw site hydropower projects on unsolicited basis; however, ECC through its decision in Case No 126/8/2005 September 1, 2005 while considering "amendments in the Policy for Power Generation 2002 to meet the accelerated power demand in the country" approved the proposal that "for raw hydel and coal site projects, expression of interest will be invited through advertisement in the press and the sponsors, who submit the best proposal, as decided by PPIB Board, will be issued LoI for the feasibility study." However, deterioration of the fuel mix for power generation has forced an increase in power tariffs to such a point where affordability has become a major issue. The energy produced from hydropower projects is generally in the range of 7-8 cent/kWh and in the present pricing structure, the project would decrease the tariff reasonably; and after completion of the concession period will reduce the tariff drastically. In addition to this, the project would save the country foreign exchange of about $200 million per month on a perpetual basis. It may also be noted that only 10 percent hydel potential (over 60,000 MW hydro generations in total) of Pakistan is currently being utilised. As such, the early completion of this project should be a national priority and in public interest. According to sources, given the financial crunch and situation in the international money market coupled with the security concerns in Pakistan, it would be very difficult to fund a project of this size in the public sector. The Public Sector Development Program (PSDP) is unlikely to be able to support such a large development in the near future despite the fact that it would actually increase resource availability in Pakistan at a quarter of the cost currently being incurred. At this juncture if a Chinese firm is committed to implement the project in the private sector and also prepared to finance it, the government needs to encourage it. In view of this perspective, the Board of PPIB in its meeting held on 9th April 2009 approved the issuance of LoI to CWE and recommended waivers in relation to certain codal formalities of the Power Policy 2002. Now that review and updating of the feasibility study by M/s CWE is complete, it is in process of submitting tariff petition to NTDC/ NEPRA for tariff determination subsequent to which LoS is due to be issued. Following submissions are made for consideration of the ECC: (i) WAPDA to prepare and finalise, through internationally reputable firm of auditors, all audited costs of the feasibility study incurred by it for reimbursement by M/s CWE prior to the issuance of LoS; (ii) authorisation of LoS to M/s CWE for development and implementation of the Project under Power Policy 2002 on boot basis; and (iii) waiver to the requirement for solicitation through advertisement as the Project was awarded to M/s CWE pursuant to MoU duly approved by the cabinet and Ecnec decision to carry out the Project in public sector.

Copyright Business Recorder, 2010

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UK-based company plans to set up 21 megawatts power plant in Karachi

KARACHI (October 13, 2010) : A UK-based company-DDR Energy International is planning to set up a 21MW power plant in Karachi at an estimated cost of $60 million to generate electricity at around 25 percent lower tariffs. In an exclusive interview with Business Recorder on Monday, a representative of DDR Energy International, Richard Cook, said, his firm was keen to establish a power generating station in Karachi to provide public with low cost electricity. He observed the city had a mixed population, ie in some parts of the metropolis people were in an abject deprivation and leading a poor miserable life. However, some parts he visited during his recent and maiden tour to Pakistan said people had a standard life. He said he continued with holding meetings with different government departments besides City District Government Karachi to get a nod for installing the proposed power station in the metropolis. When asked, Richard said if the government gave its firm approval immediately for the projects, the project would reach its completion in around 18 months and would begin power production. He said the city had a daily huge waste production from which between 300MW and 500MW power could easily be generated. After plant completion, he said his company had clear intentions to produce power at lower rates by at least 25 percent as compared to the power tariffs of KESC to supply electricity to metropolis. He hoped the lower power supply to public would also reduce the persistent trend of power theft in the city. He said his firm was likely to create a challenging environment to KESC. DDR Energy International is an environment responsible company, which would also ensure power generation at zero-rate carbon emission and would follow ecological standards of UK. Regarding employment creation prospects from DDR Energy International, Richard declined to enumerate the posts, however, said once the firm was established would generate high-skilled jobs besides helping to educate people. He envisaged "many more jobs" at the UK-based energy company for locals. For waste collection, he said, his company would assign private vehicles with guaranteed money for their services, while different areas of the metropolis would be assigned to different contractors. A recycling plant, Richard pointed out, could be set up at one of the city's waste landfill sites but, however, expressed caution regarding the geology of the sites. DDR Energy International operates and offers to the market four main technologies, which include Gas-Tech (next generation gasification), Organix (anaerobic digestion of organic material), Tycon (conversion of passenger car tyres into fuel oil, fuel gas, carbon black and steel) and Dura-Build (steam sterilisation to municipal waste to create ecologically enhanced Refuse-Derived Fuel).

Copyright Business Recorder, 2010

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Government urged to build hydel, coal fired thermal power generators

LAHORE (October 12, 2010) : Pakistan Workers Confederation (PWC) has urged the government to build hydel and coal fired thermal power generators in the public sector at the earliest and make payment to the power generating companies. Addressing a joint press conference here on Monday, President PWC, Muhammad Yaqoob and Secretary General, Khurshid Ahmad also urged the government to make public utilities department free from undue political interference. They also expressed great concern over the financial crisis and maladministration in the public sector entities like PIA, Pakistan Railways and Pakistan Steel Mills. They lamented the financial crisis in PIA because of maladministration that has resulted in an increase in losses from Rs 32 billions to Rs 72 billions in a short period and added these huge losses had been made on account of undue political interference in these public enterprises. The loadshedding and debts are mainly because of mismanagement and ill-advised policies, which substituted the hydel and thermal generation. The power produced by the IPPs is costly than hydel and thermal power, they maintained.

Copyright Business Recorder, 2010

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AEDB to hold workshop on alternative energy policy

ISLAMABAD (October 10, 2010) : The Alternative Energy Development Board (AEDB) in collaboration with the ENERGIA International is holding a consultative workshop on the subject of "Engendering the Medium Term Alternative Energy Policy of Pakistan" starting here from Monday. All stakeholders in the public and private sector are being invited, said a press release issued here. The Medium Term Renewable Energy Policy is currently under formulation and is being overseen by a Policy Review Committee (PRC), represented by essential public and private sector stakeholders, including the provinces. Donors, such as ADB, GTZ, UNDP and USAID are providing the necessary technical assistance in the development of the policy. Under an MoU signed in 2009, AEDB agreed to serve as the National Focal Point (NFP) for the ENERGIA Network Group in Pakistan. The main objective of the MoU was to make the energy sector gender responsive by integrating gender needs and concerns in the policies and plans of the government. A team of gender and energy experts are currently reviewing the draft Medium Term RE Policy document with a gender perspective. The draft Medium RE Policy document and the proposed recommendations by the gender expert will be shared with the all stakeholders during consultative workshop. In the first session, after the initial briefing by the gender experts and moderators, the participants will break up into four groups to undertake focused discussions, on the gender dimensions of the political, economic, environmental and social aspects of the policy. These four general aspects of policy will be correlated with three issues that lie at the heart of women's energy needs: availability, affordability, and safety. A brief description of the policy elements and a multidimensional matrix has been illustrated in attachment to help in preparing for the group discussions. Each element of the policy will be dealt with by one separate group. The outcome of the consultative workshop would be presented to the PRC for their consideration.

Copyright Associated Press of Pakistan, 2010

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'Kazakhstan can help in TAP gas pipeline'

ISLAMABAD (October 29, 2010) : Former Pakistani Ambassador to Turkmenistan, Tariq Osman Hyder on Thursday said that Kazakhstan could play a vital role for stability in the region by contributing technical experience and funding for Turkmenistan-Afghanistan-Pakistan (TAP) gas pipeline. Tariq who read his paper titled '"Potential role of Kazakhstan in promoting peace and security" at a seminar organised by Islamabad Policy Research Institute (IRRI) on "Kazakhstan as a Bridge between the West and the Islamic World: Challenges and Opportunities," said TAP would act as major confidence building measure in the region and would lead to its stabilisation. "In terms of stabilising Afghanistan, Kazakhstan can contribute technical experience and funding for the TAP gas pipeline from Turkmenistan to and through Afghanistan to Pakistan and perhaps to India" he said. He said that Kazakhstan could also help Pakistan both within Nuclear Supplies Group (NSG) and bilaterally, as it had done with India, develop framework for peaceful civil nuclear co-operation with Pakistan while within NSG it should support a criteria based approach under safeguard with Pakistan Atomic Energy Commission (PAEC), a civil nuclear power program. It also provide natural uranium fuel under safeguards for Pakistan, safeguarded civil nuclear power program. Dr Shabbir Ahmad Khan Assistant Professor area Study Centre of Peshawar University in his paper titled "Pakistan-Kazakhstan Relation: future prospects" Pakistan and Kazakhstan need to augment their trade and economic relations bilaterally and to work jointly to cement and consolidate ECO for regional economic integration. Though the growth of trade and economic activities depend more on the private sectors, the governments have to provide trade and business friendly environment, he said adding that this is duty of the governments to liberalise, facilitate and promote trade between the states. Additionally, he said that Pakistan and Kazakhstan have common stance on regional issues and therefore they need and must pursue joint vision to achieve the common objectives of regional security and development. Dr Maqsudul Hasan Nuri said that the importance of Kazakhstan as a bridge between the West and the Muslim World with reference to its growing influence in the affairs of Central Asia due to its political stability and economic development. He said that Pakistan attached great importance to its relations with Central Asian States, particularly Kazakhstan. He said that the emerging geopolitical realities provide excellent opportunities to both Pakistan and Kazakhstan for co-operation and collaboration and there is a lot Pakistan could learn from Kazakhstan's efforts and success in achieving religious and cultural harmony. Akram Zaki in his remarks as chief guest said that since the primary concern of Kazakhstan was security in Asia, it was crucial to establish peace in Afghanistan. Dr Saifur Rehman Malik, Dimash Abdullin also spoke on the role of Kazakhstan as Chairman of Organisation of Islamic Countries (OIC) and Organisation for Security and Co-operation in Europe (OSCE) in Inter-Religious Dialogue and Harmony. Muhammad Munir in his paper on "The Security Dimensions of OSCE Summit" said that Kazakhstan can serve as a valuable example of tolerance and inter ethnic co-existence. Its role will be particularly important in containing negative perceptions of Muslims in Europe in the post-9/11 world.

Copyright Business Recorder, 2010

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Thar coal mining project technically viable: detailed feasibility study completed

ISLAMABAD (October 28, 2010) : The Sindh Engro Coal Mining Company (SECMC) has reportedly completed the detailed feasibility study of coal mining project with the capacity to produce 6.5 million tons per annum coal from Block-II of Thar coalfield, as per schedule. "The project is technically viable. However, to ensure its economic viability it is essential to have in place the required fiscal incentives and infrastructure related to Thar coal development which has to match the timelines of the project," official sources told Business Recorder. The Sindh government is of the view that no investor can achieve financial close for a project of this level without required incentives and provision of robust infrastructure. Provision of infrastructure is the responsibility of the government; hence, it requires appropriate commitment on the part of the government to attract, and retain, investment. Sindh-Engro Joint Venture is a pioneering project, which is progressing on fast track, which explains why the first phase of the detailed feasibility has been completed in a record time of eight months. SECMC further stated that to sustain this momentum of the project it is essential that enabling environment should be provided so as to meet the project timelines. The SECMC is now planning to approach the lenders for project financing, for which approved fiscal incentives and approval of infrastructure projects, with financing arrangements, is required. These include provision of water, effluent disposal system, transmission lines, road and railway network, etc. The Chief Executive Officer has requested the Sindh government to expeditiously act with regard to infrastructure and other allied matters. Furthermore, the Council of Common Interests (CCI) in its meeting on July 18, 2010, had decided that the Ministry of Water and Power should develop a scheme, with foreign funding, for development of infrastructure to support early completion of Thar coal project. Similarly, during his visit to Karachi on July 22 and 23, 2010, President Asif Ali Zardarim, in a special meeting on Thar coal had emphasised on the federal and provincial governments to expedite the work on infrastructure development projects relating to Thar coalfield to facilitate the upcoming coal-based power projects. The infrastructure schemes, which are necessary for Thar coal project, are as follows: (i) construction of canal water carrier with capacity of 300 cusecs (Makhi Farash Link Canal Project, Chotiari Phase-II); (ii) construction of 50 cusecs drainage and wastewater effluent channel from mining area of Thar coalfield Block No.II; (iii) improvement and widening of road network from seaport Karachi to Thar coalfields (360 km); (iv) laying of transmission network up to Thar coalfields; and (v) establishment of broad gauge railway link up to Thar coalfields. Details of the proposed schemes include construction of canal water carrier with capacity of 300 cusecs (Makhi Farash Link Canal Project, Chotiari Phase-II). The scope of Thar coal mining and power generation projects is to meet initial demand of 300 cusecs fresh canal water. In this regard, Irrigation and Power Department has prepared a project for supply of canal water from Nara canal system. The project envisages construction of a water carrier. Thar coal water carrier will be constructed in two phases. The first phase includes CC lining of Makhi Farash Link Canal from RD 0+000 to 304+000, construction of 100 cusecs CC linked channel from Farash regulator to Nabisar through Dhoro escape natural water way about 40 miles in length and further by providing two pumping pipelines of 4ft dia each with suitable pumps and intermediate reservoirs from Nabisar to Vajihar, about 31 miles in length, with carrying capacity of 100 cusecs discharge each, in order to support system with auxiliary arrangement. As the natural contour limits the gravity flow with very mild gradient, it has been proposed to provide velocity booster (Persian wheels) at appropriate intervals in CC lined channel. The main reservoir at Nabisar Thar, which is a historical depression lake, having surface of about 202 acres, will be converted for retention. Further, the silt-free water will be pumped through proposed spiral steel pipelines. It has also been proposed to construct a metalled road along the proposed CC lined channel, which will provide additional supporting strength to the embankment of CC channel in Dhoro Escape, and bifurcate the natural waterway and leave sufficient waterway to Dhoro ecology. In addition, this will also provide communication link to the adjoining settlements, and facilitate the monitoring/operational activities. In second phase after completion of Makhi Farash Link canal project, the 200 cusecs CC lined channel will be constructed with same methodology of additional pumping pipelines arrangements. The project is planned to be completed in two years' time. The total cost of the project (PC-1) has been prepared only for construction of Phase-I, amounting to Rs 27.00 billion and is based on preliminary survey, design and cost estimated on market rates. II) Effluent disposal from Thar coalfields: In order to initiate mining activity in Thar, there is need of appropriate sized effluent disposal system. It has been assessed by RWE that bottom aquifer will involve disposal and pumping of about 25-30 cusecs from a mine of size 6.5 mtpa. In addition, 5-7 cusecs of effluent shall also be generated by power plant of the size of 1000 mw. Thus, it is expected that Thar coalfields require a robust effluent disposal system for disposal of at least 50 cusecs of effluent. For the purpose of construction of 50 cusecs drainage and wastewater effluent channel from mining area of Thar coalfields, the Irrigation and Power Department, Government of Sindh, has prepared a PC-II for feasibility study for construction of 50 cusecs drainage and wastewater effluent channel from mining area of Thar coalfields. The PC-II has been approved by the PDWP on 16th September, 2010. The proposed feasibility study under this PC-II would identify and confirm source of disposal for wastewater and effluent drainage to fulfill the requirements and the mechanics to dispose of the same to three sources/options available ie LBOD (Creek), Shakoor Dhandh and Rann of Katchh or any other possible source for Thar Coal power plants as well as to make a proposal if the maximum quantity of wastewater may be reused for irrigation purposes at Vajihar. Sindh Irrigation & Drainage Authority (SIDA) has been engaged as consultants to prepare feasibility study and planning documents such as PC-I. The PC-I would be developed after completion of feasibility study ie within three months' time. It is anticipated that the project entails cost of Rs 12.75 billion. The PC-II is costing Rs 20.100 million. III) Improvement and widening of road network from seaport Karachi to Thar coalfields (360 km): Thar coal mining will involve huge machinery. This huge machinery will have to be moved from seaport to coal mine sites. It is expected that the huge machinery such as shovels, trucks, loaders and dozers as huge as 13 metres, will be used in open pit mining process. For transportation of huge mining machinery, the existing road network up to Thar coalfields requires upgradation and widening. In order to improve and widen the existing road network, the existing road will have to bear 70-ton bridges carrying capacity with a height clearance of minimum 3.2 metres and width of 7 metres. The Government of Sindh, through Works and Services Department, has prepared a PC-I for improvement and widening of existing road network from seaport to Islamkot through Thatta-Sujawal, Badin-Nindo, Wango-Mithi, Islamkot-Thario Haelpota, having total distance of 360 km. The cost of this scheme is Rs 5 billion. IV) Laying of transmission line up to Thar coalfieldsz: Keeping in view the possible evacuation of 10000 MW from Thar coalfield within next 5-10 years, NTDC with the support ADB funding has initiated a feasibility study for laying of transmission line up to Thar coalfields. NTDC has hired consultant for the feasibility study for construction of about 1300 km transmission line, initially for dispersal of 2500-3000 MW power from the coal projects to upcountry load centres. The selection process has been completed and the report had been sent to ADB on October 3, 2009 for concurrence. The present scope of the study, costing about $3.5 million, funded by ADB, originally covered imported coal plant. This is intended to be enhanced to also cover the dispersal of power from the proposed 1000 MW Thar coal plant. The process/configuration of transmission system (including line/grid/switching station) will actually cater for the evacuation of at least 10,000MW of power--it can also be replicated for an additional 10,000 MW. The required transmission network along with the voltage level (HV DC or AC) would be decided, based on the outcome of the feasibility study, and the revised PC-1 will be prepared accordingly. The timeline for completion of feasibility report is fixed as 12 months from the date of issuance of LoA. Ministry of Water and Power through NTDC has awarded preparation of feasibility work for laying of transmission lines to SNC Lavlin. During recent meetings with NTDC, the latter had communicated that SNC Lavlin is going to complete feasibility during November-December 2010. NTDC plans to submit PC-I based on feasibility by end of 2010. Total estimated funding required for laying of transmission line is approx $1.0 billion. Keeping in view the huge scale of funding required, Ministry of Water and Power has to expedite early preparation and approval of PC-I so that funds can be tapped from international funding agencies. (V) Establishment of broad-gauge railway link up to Thar coalfield areas: Construction of rail link for the coalfields is essential. The Government of Sindh has approved PC-II for feasibility study for providing broad gauge railway link up to coalfield areas of Sindh at a cost of Rs 21.900 million. The feasibility study has been assigned to Pakistan Railway Advisory Consultancy Services (Pvt) Ltd (PRACS).

Copyright Business Recorder, 2010

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Two Russian giants may invest in IP gas line, Steel Mills: BoI

ISLAMABAD (October 17, 2010) : Two Russian industry giants are likely to invest in construction of Iran-Pakistan gas pipeline, and expansion in Pakistan Steel Mills Corporation, if Pakistan agrees to provide them sovereign guarantees. This was stated exclusively to Business Recorder by the Chairman of the Board of Investment (BoI), Saleem Mandviwalla. The final decision to allow participation of the Russian companies in the mega projects of gas pipeline and steel mills would be taken during the visit of President Asif Ali Zardari in January 2011, he added. The President's January visit to Russia is being termed as significant in the background of Pakistani delegation's recent visit in September 2010. The delegation, according to BoI chairman, had met with the chairman of Gazprom, Zarybezhneftgaz, who agreed to invest in the energy sector in Pakistan. During discussions, the two sides reportedly agreed to enhance co-operation in the energy sector. Gazprom showed interest in the construction of IP gas pipeline, and agreement is likely be signed in the coming visit of the President if the two sides agreed, Mandviwalla said. Gazprom is a state owned company which has the capacity to build mega gas pipelines under sea and offshore. Another Russian company, Tyazhpromexport, has been requested to invest in expanding the production capacity of Pakistan Steel Mills Corporation and transform it into a profit generating entity.

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Thar coal field declared SEZ

ISLAMABAD (October 21, 2010) : The Economic Co-ordination Committee (ECC) of the Cabinet has approved incentives for development of local coal which include declaration of Thar coal field 'Special Economic Zone' (SEZ), official sources told Business Recorder. The ECC in its meeting on October 15, 2010, was informed that Thar coal field in Sindh is spread over more than 9000 sq km and is bestowed with 175 billion tons of lignite coal, which can fuel power generation of over 100,000 MW for more than two centuries. In order to expedite development of Thar coal field and attract investments, the federal government and provincial government of Sindh have joined hands by constituting 'Thar Coal & Energy Board' (TCEB), headed by Sindh Chief Minister, which is empowered as a one-stop decision-making body. The federal government is represented on the TCEB through Minister for Water and Power as its Vice Chairman, Minister for Finance, Law Minister and Deputy Chairman of Planning Commission. Sources said that all relevant stakeholders thoroughly deliberated and drafted a comprehensive incentive package. A committee, headed by Deputy Chairman of Planning Commission, also recommended that Thar coal field be declared SEZ, and the project of development of Thar should be declared as 'project of national security'. The National Electric Power Regulatory Authority (Nepra) should allow 20.5 percent and 20 percent internal rate of return to companies which achieve financial close before 31st December, 2014 and 31st December, 2015, respectively. To meet infrastructure requirements (water, mine construction/operator, effluent disposal system, roads network transmission line, resettlement, health and safety infrastructure, railway line and clear titles of land) an amount of $300 million per year may be committed for the next 5-6 years for timely completion of these projects. TCEB will function as 'Coal Pricing Agency'. During discussions it was stressed that in order to sustain economic growth, Pakistan needs to develop its indigenous energy resources rapidly. Proposed investment in development of Thar coal mines will provide benefits like strategic energy resource, import substitution of expensive raw furnace oil (RFO), lower power tariff for coal-fired power plants, and improve socio economic development in Thar region. It will also lead to skilled job creation and transfer of technology. To achieve these benefits, extension of incentives is essential to attract investors, failing which, the project will remain unimplemented for another long period. It was however, observed that, while considering the project, environmental issues should be addressed and actual cost be determined by Nepra.

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Oil production stood at 64,188 barrel per day

KARACHI (October 09 2010): The country's oil production stood at 64,188 barrel per day (bpd) in the first quarter of FY11, as compared to 63,907bpd in the corresponding quarter in FY10, slightly up by only 0.4 percent on year-on-year basis. The gas production, however, increased by 2.3 percent on year-on-year basis to 4.037bcfd in this quarter against 3,946mmcfd in the same quarter last year. On the oil front, enhanced production from Tal block fields, Manzalai and Makori, by 1,196 percent and 34 percent on year-on-year basis compensated the decline in production from other fields, Nauman Khan, an analyst at Invest Capital and Securities said. At one hand, fields like Chanda, Mela and Zamzama witness a production decline of 35 percent, 32 percent and 18 percent on year-on-year basis, respectively on account of recent floods, while on the other hand, fields like Bobi, Kunar, Sono, Tando Alam and Thora are faced with ageing effect. The oil production from these fields declined by 25 percent, 7 percent, 28 percent, 31 percent and 21 percent, respectively. Other fields, which have been adversely affected by floods, are Naspha and Bela, he added. On the gas front, he said, flood suppress production from Zamzama by 18 percent, Qadirpur 23 percent and Kandkhot 5 percent while Sui is facing a natural decline, down 4 percent. However, increased production from Mari by 5 percent, Sawan 11 percent, Makori 50 percent and Manzalai 614 percent mitigated the decline from the aforementioned gas fields. Amongst the listed companies, OGDC seems to be most adversely affected by the flood, as its oil and gas production decline by 5.3 percent and 3.7 percent. PPL's major gas fields Sui and Kandkhot were also adversely affected by flood, but enhanced production from Manzalai and Makori has more than compensated the decline. Overall, company's gas production increased by 4.3 percent, while its oil production was up by a significant 61.7 percent on account of enhanced production from Tal and Naspha block. POL benefited from Tal block production boost as its oil and gas production increased by 20.5 percent and 131.0 percent, respectively.

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Pakistani firms offered to explore oil and gas in Tajikistan

ISLAMABAD (October 03 2010): A delegation of Tajik Trans Gas led by Director General Sharofiddinov called on Syed Naveed Qamar, Minister for Petroleum and Natural Resources who is on a visit to Tajikistan. Tajik Trans Gas, which is state owned exploration and production Oil and Gas Company during the call on the Minister in Dushanbe offered that Pakistani public and private sector exploration oil and gas companies could come to Tajikistan to explore vistas of immense opportunity in their country. They proposed that Pakistani public and private sector oil and gas companies could form a joint venture to jointly explore and develop the oil and gas finds in Tajikistan. Syed Naveed Qamar assured the delegation of Tajik Gas on behalf of his ministry and Government of Pakistan to extend all possible support and assistance in its quest of exploration of hydrocarbon in Tajikistan. The Minister said that he would ask both public and private sector oil and gas E&P companies to visit the Tajikistan at their first available opportunity to meet the relevant authorities and Tajik Gas to work out the feasibility of formation of joint venture to explore hydrocarbons in Tajikistan. The Minister said that E&P sector in Pakistan had developed into a dynamic and the most mature sector at the back of many successful exploratory finds of hydrocarbons in Pakistan to its credit. E&P companies of Pakistan had the know-how and expertise par excellence to undertake all sorts of exploration activities particularly offshore, he added. During the meeting, Dr Zubaydullo N Zubaydov Ambassador of Tajikistan to Pakistan, Khalid Usman Kaisar, Ambassador of Pakistan to Tajikistan and Hilal A Raza MD Inter State Gas System Ltd of Pakistan were also present.-PR

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Thar Coal: chief minister chairs meeting on infrastructure development

KARACHI (October 10, 2010) : Chief Minister Sindh, Syed Qaim Ali Shah, here on Saturday presided a meeting regarding Thar Coal infrastructure development. An official statement said that President Engro, Asad Umar, along with CEO Engro Power Gen, Khalid Mansoor, informed the meeting that detailed Bankable Feasibility Study has been completed by the internationally renowned consultants as per the stipulated date of August 31, 2010. He briefed the participants that technical, environment and social viability of the project has been confirmed meeting all international lender's standards (IFC/World Bank, ADB etc). CEO Engro emphasised that early closure of infrastructure activities are critical for Thar Coal project timelines. Sindh Secretary Coal and Energy Development Department, Ajaz Ali Khan, briefed the meeting about status of various initiatives taken by the Government of Sindh to meet the timelines. He informed that PC-1 for 300 cusecs water supply schemes has been approved by PDWP in July 2010, consultants have been mobilised for preparing feasibility for effluent disposal and broad gauge railway link and PC-I for upgradation of roads has been prepared by Works and Services Department. Aijaz Ali Khan presented a revised strategy for addressing infrastructure milestones. Chief Minister Sindh appreciated the SECMC for completing the detailed feasibility within record 8 months. He after a detailed discussions decided to constitute a Ministerial Committee to expedite infrastructure schemes related to Thar coal. The Committee will approach key Federal Ministers as team and expedite approvals required for infrastructure scheme on priority basis. The Committee will comprise Syed Ali Nawaz Shah Minister Agriculture, Syed Murad Ali Shah, Minister Finance, Jam Saifullah Dharejo, Minister Irrigation and Power, Dr Kaiser Bengali Advisor to Chief Minister Sindh for P&D, Aijaz Ali Khan Secretary C&EDD to act as Secretary of the committee. It was informed that the Government of Sindh would allocate Rs 10 billion every year for next five years for Thar Coal infrastructure schemes. It was also decided that Federal Government will be approached and requested to provide matching grant of Rs 10 billion each year as being committed by GoS so that unwavering commitment can be reflected for Thar Coal development. It was decided that the block allocation of Rs 8 billion in ADP 2010-11 earmarked for Thar coal development will be distributed to critical infrastructures schemes required for Thar Coal development viz Rs 4 billion to I&P for Makhi-Farsh water supply scheme; Rs 2 billion to SIDA/I&P for effluent drainage Scheme; and Rs 2 billion to NTDC for initiating laying of transmission lines.

Copyright Associated Press of Pakistan, 2010

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Thar Coal: chief minister chairs meeting on infrastructure development

KARACHI (October 10, 2010) : Chief Minister Sindh, Syed Qaim Ali Shah, here on Saturday presided a meeting regarding Thar Coal infrastructure development. An official statement said that President Engro, Asad Umar, along with CEO Engro Power Gen, Khalid Mansoor, informed the meeting that detailed Bankable Feasibility Study has been completed by the internationally renowned consultants as per the stipulated date of August 31, 2010. He briefed the participants that technical, environment and social viability of the project has been confirmed meeting all international lender's standards (IFC/World Bank, ADB etc). CEO Engro emphasised that early closure of infrastructure activities are critical for Thar Coal project timelines. Sindh Secretary Coal and Energy Development Department, Ajaz Ali Khan, briefed the meeting about status of various initiatives taken by the Government of Sindh to meet the timelines. He informed that PC-1 for 300 cusecs water supply schemes has been approved by PDWP in July 2010, consultants have been mobilised for preparing feasibility for effluent disposal and broad gauge railway link and PC-I for upgradation of roads has been prepared by Works and Services Department. Aijaz Ali Khan presented a revised strategy for addressing infrastructure milestones. Chief Minister Sindh appreciated the SECMC for completing the detailed feasibility within record 8 months. He after a detailed discussions decided to constitute a Ministerial Committee to expedite infrastructure schemes related to Thar coal. The Committee will approach key Federal Ministers as team and expedite approvals required for infrastructure scheme on priority basis. The Committee will comprise Syed Ali Nawaz Shah Minister Agriculture, Syed Murad Ali Shah, Minister Finance, Jam Saifullah Dharejo, Minister Irrigation and Power, Dr Kaiser Bengali Advisor to Chief Minister Sindh for P&D, Aijaz Ali Khan Secretary C&EDD to act as Secretary of the committee. It was informed that the Government of Sindh would allocate Rs 10 billion every year for next five years for Thar Coal infrastructure schemes. It was also decided that Federal Government will be approached and requested to provide matching grant of Rs 10 billion each year as being committed by GoS so that unwavering commitment can be reflected for Thar Coal development. It was decided that the block allocation of Rs 8 billion in ADP 2010-11 earmarked for Thar coal development will be distributed to critical infrastructures schemes required for Thar Coal development viz Rs 4 billion to I&P for Makhi-Farsh water supply scheme; Rs 2 billion to SIDA/I&P for effluent drainage Scheme; and Rs 2 billion to NTDC for initiating laying of transmission lines.

Copyright Associated Press of Pakistan, 2010

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Enercon, NPO sign three accords

ISLAMABAD (October 06 2010): National Energy Conservation Centre (Enercon), Ministry of Environment and National Productivity Organisation (NPO), Ministry of Industries and Production have entered into three project agreements on Tuesday here at Enercon building. Faridullah Khan, Managing Director, Enercon and Khawaja Muhamammad Yousuf, Chief Executive Officer, NPO signed the agreements on behalf of the both organisations. These projects consist of development of industrial sector Management Information System (MIS), conducting building energy audits in selected public sector buildings, including Prime Minister's Secretariat and conducting energy conservation trainings in all major cities of the country. Managing Director, Enercon shows concern about the energy conservation in the country and expected that with the development of industrial sector MIS, energy consumption in more than 100 local industries shall be observed, which will be benchmarked with world-wide energy consumption. Building energy audits will help in observing the energy consumption and conservation scenario of the public sector buildings with the help of trainings and awareness regarding energy consumption and conservation among the general public. Managing Director, Enercon appreciated the efforts and contribution of NPO in carrying out energy audits and conducting training programmes to create awareness among the masses. He also expected that the above projects will set benchmark and yield fruitful results in conservation and efficient management of energy utilisation.-PR

Copyright Business Recorder, 2010

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AEDB asked to process EOBI's two wind energy power projects

ISLAMABAD (October 06 2010): The Minister for Water and Power, Pervez Ashraf, has asked the Alternative Energy Development Board (AEDB) to immediately process the proposals of Employees Oldage Benefit Institution (EOBI) for setting up of 200 to 500 MW wind energy project in the country. He said this while presiding over the inter-ministerial meeting for setting up of wind energy project with local manufacturing. The meeting was also attended by Labour Minister Khursheed Shah, Minister of State for Defence Production Salim Haider, Chairman of Heavy Industries Board, Taxila (HIT), Chairman of EOBI, CEO of AEDB, and other officials of the AEDB and HIT. The Minister appreciated the EOBI for its keenness to invest in the power sector by establishing wind power project. He said that Pakistan has great wind energy potential. The wind energy is environment-friendly power generation and the world is also trying to develop wind farms to generate cheapest energy for its consumers. He said that the government of Pakistan is also encouraging investment in the alternative energy projects and a number of LoIs have been issued to the potential investors. He said that the change in the energy mix is Pakistan's policy and alternative energy and hydel projects are the priorities. He said that after completing the required procedure, the AEDB would immediately issue LoI for the wind power project of EOBI. Khursheed Shah said that his Ministry is keen to invest the EOBI funds in the best national interests and the proposal to set up 'wind energy farm' would help in meeting future energy requirements. He said that the EOBI would set up wind power project of 200 to 500 MW with collaboration of local manufacturing. He said that it is the aim that the wind project should be completed within shortest possible timeframe of one year. The Minister of State for Defence Production informed the meeting that Heavy Industries Taxila has the ability to develop some kind of wind energy machinery parts. He assured the meeting that the HIT would fully cooperate in the project and utilise all of its expertise. The meeting decided to process two feasibilities one for 200 MW and other for 500 MW wind projects as early as possible. The report of the AEDB and HIT will be submitted in the next inter-ministerial meeting to be held next week.-PR

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Power sector reforms programme: Rs 180 billion to be saved by improving Discos' efficiency, says Nadeem

ISLAMABAD (October 06 2010): The government said it would save Rs 180 billion by improving the efficiency of power distribution companies (Discos) by granting them administrative and financial autonomy under the power sector's reforms programme. While talking to journalists after the two-day workshop on power sector reforms, deputy chairman Planning Commission Dr Nadeem-ul-Haq said that the government would fill the gap between cost of power generation and cost of services by improving efficiency of Discos and arranging Rs 30 billion through budget. "We will have little chance to raise power tariff to fill gap between cost of power generation and service after raising Discos' performance," he maintained. He further said that National Electric Power Regulatory Authority (Nepra) would be empowered to notify electricity tariff on monthly basis under the reforms programme. Chairman Water and Power Development Authority (Wapda) Shakeel Durani said that the government had planned to raise hydle power generation capacity to 10,000 MW against the existing 6444 MW in next 7 to 8 years. At the end of the two day workshop on "Power Sector Reforms" arranged by the Planning Commission, a number of recommendations were made. The workshop was aimed at starting the implementation of reforms and to understand what the reform means to the companies and the consumers and to develop the new ways of operating in a post PEPCO regime. The participants included government ministries/ departments, power generation and distribution companies, donors' representatives, other stakeholders-including academics, experienced professionals, consultants and representatives of consumer groups. During the workshop the power sector companies were asked to review the revised business plan to align it with the power sector reform targets by the time of the next workshop. The companies also agreed to take up on urgent basis, loss reduction efficiency measures such as implementing smart meters and revamping the generation capacities to acceptable efficiency level apart from emphasis on modern governance methods. The reforms will be designed and implemented by the transition committee headed by Deputy Chairman, Planning Commission oversight provided by a steering committee of stakeholders from Ministry of Finance, Ministry of Water and Power, Ministry of Petroleum and Natural Resources and Deputy Chairman Planning Commission. The gist of discussions/ recommendations of the workshop are follows: The need for energy efficiency was emphasised. The construction of 747 MW combined cycle plant at Guddu with 51 percent efficiency needs to be expedited. The raising of Mangla Dam would increase storage capacity and the power generation although it would not increase its capacity. The present financial health of most of the Discos is poor and urgent measures including the payables by public sector entities to them need to be addressed. The operation of Discos would be made more effective by giving them full autonomy and improving the distribution system. SMART metering system would be introduced to overcome the pilferage. The Corporate structure of the companies needs improvement. Electricity Act of 1910 and electricity rules of 1937 need to be revisited and updated. Rationalisation of fuel mix needs to be undertaken by moving away from furnace oil to make electricity affordable. The new additions based on domestic as well as imported coal needs to be considered. The Basha and Dasu dams in the hydel sector would add 8500 MW to the system in the next 15 years. The need of corporate planning by all power sector companies was emphasised.

Copyright Business Recorder, 2010

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Government constituted body to restructure power sector: National Assembly informed

ISLAMABAD (October 01 2010): The government has constituted a committee to restructure and improve the efficiency of power sector by making Distribution Companies (Discos) independent and dissolving Pakistan Electric Power Company (Pepco). Replying to a supplementary question, Minster for Water and Power on Thursday told the National Assembly that electricity distribution companies would be made independent and would be responsible of their loss and profit. Replying to another question about load shedding, the Minister said that there was gap between demand and supply of electricity. He added that 1750 MW electricity has been added to the national grid and 1000 MW more would be added within next four to six months. He said that said the government learnt positive lessons from Energy Summit. "Though we have prioritised actions yet the government has to bear Rs 20 billion monthly as subsidy." In a written reply to a question, the minister said that a project CASA-1000 MW is under consideration for importing 1300 MW power from Kyrgyzstan and Tajikistan for Afghanistan and Pakistan, respectively. He said that it was estimated that 300 MW would be available for Afghanistan and 1000 MW for Pakistan only during five months in a year. He said that actual availability of power would be confirmed after finalisation of feasibility study, which is under process. After commencement of work it will take tentatively four years to complete, he added. He said that actual construction period would be finalised when Agreements are signed. "Tentative cost of electricity is approximately 8.5 US Cents/ KWh. However, actual Tariff will be finalised at the time of signing of the agreement," he said. He said that that WAPDA has initiated some projects to fulfil electricity and agriculture requirements of the Country. He said that Diamer-Basha Dam Project having total capacity of 4500 MW will produce annual energy of 16.7 billion KWh. He added that the project is expected to be completed by 2020-21 at an approximate cost of Rs 894.3 billion. He said that Satpara Dam Project has 16 MW installed capacity and generate 105 million KWh of annual energy. He added the Project is expected to be completed in December 2010. Similarly, there are many projects including Phandar Hydropower Project, Basho Hydropower Project, Neelum-Jhelum Hydropower Project, Kohala Hydropower Project and other small projects in all the four provinces.

Copyright Business Recorder, 2010

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Wapda plans to initiate work on 10 power projects

PESHAWAR (October 01 2010): Water and Power Development Authority (Wapda) has prepared plan for initiating work on 10 hydro-power projects to meet the growing demands of energy of the country. Briefing the newsmen the Khyber Pakhtunkhwa Minister for Information, Mian Iftikhar Hussein said that in this connection, chairman, Wapda, Shakil Durrani held special briefing for the provincial government. Those who attended the briefing were included Chief Minister Khyber Pakhtunkhwa, Ameer Haider Khan Hoti, senior ministers, Rahimdad Khan, Bashir Ahmad Bilour, Minister for Information, Mian Iftikhar Hussein, Chief Secretary, Additional Chief Secretary, Chief Executive, Pesco, Mohammad Wali, administrative secretaries and senior officials of Wapda. Mian Iftikhar Hussein said that a comprehensive plan has been chalked out by the federal government to start work on 10 hydro power projects, including seven in Khyber Pakthunkhwa in next five years to address load management and energy needs of the country. These projects would generate 11610MWs electricity for the country's agriculture, industrial domestic use, he added. Work on Golan Gol Chitral and Turbela 4th Extension has been kicked off from which 106 mega watts costing Rs 7 billion and 960 mega watts costing Rs 700million electricity would be generated respectively, he added. Referring to Kurram Tangi Dam project, he said that it was one of the important projects of the provincial government that would be completed with an estimated cost of Rs 46.213 billion in record 48 months with irrigation capacity of 362380-acre land. Five powerhouses would be constructed on Kurram Tang dam that would generate 83.4mega watt, adding that design of the dam has been completed. The government will acquire 12124 acres land and Rs 570.170 million has been earmarked by federal government in budget 2010-11. He said that work on the project will start next year and Chinese engineers would be provided full security. The minister said work on Bara, Tankzam, Matltan and Pallas Valley will start next year that would generate 15MW electricity. Work on multi-purposes Munda dam will start in 2012 with 740 power generating capacity and would be completed with an estimated cost of Rs 100 billion. Likewise, Dasu and Pattan Projects in Kohistan district would start in 2012 and 2013 with power generating capacity of 4320MW and 2800MW electricity respectively, adding that both the projects would be completed with an estimated cost of Rs 987 billion and Rs 375 billion respectively.

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