Chichoki Mallian: Gilani to sign accord for 525 megawatts plant
MUSHTAQ GHUMMAN
ISLAMABAD (March 31 2008): Prime Minister Yousuf Raza Gilani is all set to ink the first-ever power sector pact of his government with a Chinese company, Dong Fong, here on Monday (today) for setting up 525 MW thermal power plant with an investment of $450 million at Chichoki Mallian (Sheikhupura), sources close to the Private Power Infrastructure Board (PPIB) managing director told Business Recorder.

Sources, however, expressed serious concern over the cost escalation, saying the project cost could have been negotiated by a team of experts. The Dong Fong was already in the process of setting up thermal power plant of 450-500 MW at Nandipur (Gujranwala), though several questions had been raised by the Euro Dynamics International, a Lahore-based firm, that the second lower bidder joint venture of Chinese company does not meet the qualification and requirement of combined cycle plant.

Earlier, former prime minister Shaukat Aziz had signed a memorandum of understanding (MoU) with the Qatar Investment Authority (QIA) and the Alstom-Marubini to set up 450-500 MW thermal power plant at Chichoki Mallian, but a couple of months ago, the pact was terminated when the sponsors did not come up with tariff petition.

The ECC, in its meeting on October 31, 2007, had directed the Ministry of Water and Power to issue a notice to the proposed sponsors, including the Alstom-Marubini and the QIA to come up with a deadline as to when they intend to file an application to the National Electric Power Regulatory Authority (Nepra) for tariff fixation and project completion to avoid any further delay.

The Government of Pakistan had sent several letters to QIA for this purpose, but they did not pay any heed despite the fact that gas allocation deadline of November 30, 2007, had expired.

Now the government has decided to award the contract to Dong Fong on the same terms and conditions applicable to 450-500 MW combined cycle power plant at Nandipur, the sources maintained. An official told this scribe that the Chinese company would complete the project within the estimated cost of $330 million.

Sources said that initially the Investment Division, which saved the deal was handling the project, but later on it was transferred to the PPIB. They said that a ceremony would be held in the Prime Minister House on March 31 to be attended by the Chinese dignitaries and local officials.

http://www.brecorder.com/index.php?id=7168...m=&supDate=

Where is my feasibility study? pre-feasibility study? pro-forma contract?


or have they already been completed during the last govt's tenure?

Where is my feasibility study? pre-feasibility study? pro-forma contract?


or have they already been completed during the last govt's tenure?

Instant .. what do you think design, feasibility & pre-project studies have to be taken prior to signing any contract. Apparently all has been done during the earlier govt.

Also note that this govt. is taking into consideration the pricing done of Alshtom-Marubeni i.e; French / Japanese equipment for Chinese product ! I am sure the pricing is like 25% higher ...

However, with the escalation in world market of price hike added with our security conditions, we don't have many options.

Best of luck.

525 megawatts Chichoki Mallian project signed: Gilani vows to overcome power shortage
ISLAMABAD (April 02 2008): Prime Minister Yousuf Raza Gilani on Tuesday reiterated the resolve for provision of additional 2200MW of electricity within one year and said Wapda has already been given instructions to overcome power shortage in shortest possible time.

Speaking at the signing ceremony of 525 MW Chichoki Mallian power project with the Chinese company Dong Fong Corporation, Gilani said the government's policy is to ensure energy sufficiency in the country on least cost basis. "It is essential for us to achieve high GDP growth and ensure that the people are not subjected to load shedding," he added.

The contract was signed by Water and Power Secretary Ismail Qureshi and Dong Fong Corporation Chairman Si Zefu. Gilani said his first priority was to redeem the alarming situation in the power sector, which arose due to non-addition of new generation over the past 10 years.

"The last major addition in power generation was carried out in 1994-96 under the then People's Party government due to which 4500 MW electricity was added." Once again, he added, the country was facing a challenging situation to bridge the electricity supply-demand gap in shortest possible time.

He said Chichoki Mallian power plant has been approved by the government for fast track implementation. He expressed his pleasure that Dong Fong Electric Corporation from brotherly country China has concluded the agreement with Pepco in a very short timeframe.

"This plant located in the centre of high power demand area will provide much needed power to the industry, business and the people." Gilani said the government will shortly announce long-term policies with emphasis on coal-fired generation based on indigenous coal to overcome power shortage. He said he has also announced several energy conservation measures, which will be enforced by the concerned institutions.

These include installation of 10 million energy saver bulbs, which will be provided free to charitable institutions as well as women and children care houses. He said all buildings would be required to use saver bulbs within the prescribed time limit. Private houses and businesses will be encouraged to use saver bulbs on payments recoverable in instalments through electricity bills, he added.

The Prime Minister also announced that production and import of bulbs, which are not energy savers, would be gradually phased out. He said Enercon has been asked to conduct audit of electrical appliances and gadgets. He urged the people, business and industry to achieve the target of reduction in energy consumption at least upto 15 percent over the next one year.

"This will provide additional capacity for running the economic engine of the country, as a kilowatt saved is a kilowatt generated," he added. The Prime Minister hoped that the groundbreaking will be done quickly, so that the project is commissioned within two years.

Water and Power Minister Raja Pervaiz Ashraf said if the power crisis is not averted, it may result in economic downturn. He said although the public sector has a great responsibility to improve the power shortage, the private sector will also be encouraged to invest in this sector.

http://www.brecorder.com/index.php?id=7177...m=&supDate=

Well some1 else cooked the pot and they will take credit for it. Now watch their supporters jumping up and down and claiming that all this is due to new government when infact the ground work for any contract or project was done by the previous governmetn so what is the big deal abt signing it.

As for power shortage its a great thing that projects are starting and im hopeful we will get something done, but than again now SINDHIs are in power they shoulld be able to start DAM so we dont have more shortage as far as power and water is concerned.

I don't care who did it, as long as we get serious results and we get them quick. How long before this becomes operational?

Make 100 plants. If you can't stop people from stealing electricity your government is uselss.

Where the writ of the central government doesn't go, you have a state within a state

$450 million to set up the 525 MW plant. Build 10 of these plants over the next two years (before 2010), which would cost $4.5 billion and would have a generation capacity of 5,250 MW. The energy shortage in Pakistan is supposed to reach 5,300 MW in 2010, meaning this would significantly curb that shortage.

Quite a lot going on.

Pakistan and China to sign MoU for Basha Dam financing
http://www.dailytimes.com.pk/default.asp?p..._4-4-2008_pg5_8
Friday, April 04, 2008
By Zafar Bhutta

ISLAMABAD: Pakistan and China are set to sign Memorandum of Understanding (MOU) in the next week to seek soft loan from China for carrying out the construction Diamer Bhasha Dam project, official sources in Water and Power Ministry told Daily Times on Thursday.

Sources told that President Pervez Musharraf would visit China on April 8 to 10 according to tentative schedule and two sides would sign MOU for Bhasha dam financing.

They said that Pakistani authorities would present the draft of detailed engineering design to the Chinese authorities to seek loan for the construction of Bhasha dam. “After analysing the draft design of the dam, China will give comments on it and offer the loan for the dam construction,” official added.

Sources said that World Bank’s terms and conditions for the loan for the construction of such mega project are tight and keeping in view that scenario Pakistan has decided to seek loan from China that would offer loan on soft terms and conditions.

Sources said that the whole funding would not be generated from China and however major chunk of the money would come from it after MOU signed between two countries. They said that China would be a main player in joint venture for generating financing for the construction of Bhasha dam.

When asked whether China would participate in the construction of the project, sources said, that China would want to take award of the construction of the dam project because it has been the policy of china to take project for the construction for which it provides financing.

Chinese state run company Dong Fong has recently signed the contract with Pakistan for carrying out the 525MW gas based thermal power plant at Chichoki Mallian and it is also working on 450MW power project at Nandipur (Gujranwala). Chinese company has the experience of working on dam also like Gomal Zam dam and China may take the project for the construction, sources added. Chinese company is also working Neelum-Jhelum Hydropower Project.

Sources said that Pakistan would also sign agreement with Chinese Company Sino Coal that is willing to work on coal in Thar. The Chinese company will initiate the project of coal in Thar, sources added.

The Chinese company, Shenhua after spending three years rolled back from the project for mining coal in Thar. The company has spent around 25 million dollars during the project on the construction of road, water and power availability. When it mined the coal that was not of high quality, the company was further asked to further process the coal but company denied and rolled back, sources said. Now, Chinese Company Sino Coal is willing to work on coal projects in Thar and agreement would be signed with the company during upcoming President Pervez Musharraf visit to China, sources added.