KW&SB resumes 35 megawatts Dhabeji project

  • 06/04/2008

  • Business Recorder (Pakistan)

The Karachi Water and Sewerage Board (KW&SB) has resumed the project of 35 MW plant at Dhabeji. KW&SB officials told Business Recorder on Saturday that the power from 35 MW plant would be available at the cheaper rate than the Karachi Electric and Supply Company (KESC). They said the estimated cost of the project was Rs 40 million, which would be invested by the American Company. They said the KW&SB had to buy a unit of electricity at the rate of Rs 5.95 from KESC while the American Company would provide power at Rs 3.98 per unit through which the KW&SB would save million of rupees. They observed the KW&SB had to purchase the power at a very expensive rate for the next 25 years period, if it would continue purchasing electricity from the KESC. They said: "The KW&SB requires 23 MW electricity to run its water pumping stations and after completion of power plant it would be in a position to sell additional 12 MW to the KESC or industrial units at Dhebeji." They said that power plant would be constructed on 'built operate and transfer' (BOT) basis and thereafter the possession would be transferred to the KW&SB while the American Company would have to provide assistance to the KW&SB to run this project smoothly. The City District Government Karachi (CDGK) is facilitating the American company to establish power plant while they would also arrange supply of natural gas from Sui Southern Gas Company (SSGC) for the plant, they said. "A Letter of Endorsement will also be provided to the American Company from the State Bank to ensure the payment of tariff to the company on time besides endorsement for fuel supply agreements, they added. They expected that project would be completed within 21 months after its commencement and fulfil the power demands of coming 25 years. They said the government has approved BOT contract for 25 years and it will be extendable, although the American Company will bound to transfer control to the KW&SB. The power plant comprising three natural gas, high-speed diesel and light diesel oil-fired combustion turbine power generating units and three steam turbine power generating units, they added.