Port Qasim Electric Power Company starts converting to Thar Coal

on 09/01/2023

Port Qasim Electric Power Company Limited (PQEPCL) is set to blend Thar Coal with imported one as the company’s proposal submitted with the Power Division has gotten a nod now.
This will be the beginning of the 1320 MW imported-coal fired project into the Thar Coal-fired powerhouse. Initially, the project will blend Thar Coal with a ratio of 10 percent on a pilot basis.
Private Power Infrastructure Board (PPIB), a report said had approached the Sindh Government as regards conversion to the Thar Coal of all IPPS in the country and asked for a bankable study. The Sindh government hired Fichtner GmbH KG & Co which conducted the study.
Based on data acquired from Port Qasim Electric Power Company the consultant submitted a preliminary feasibility report for the conversion of the imported coal-based power plant to Thar coal with the Power Division.
Simultaneously, the report said a feasibility study is also being monitored by the PPIB-appointed Panel of Experts (PoE) consisting of experts from the government and private sector.
Fichtner’s study findings say, most of the company’s plant systems have extra capacities that can handle a certain percentage of Thar Lignite with the exception of limiting equipment, ie, Fuel Gas Desulfurization (FGD), electrostatic precipitator, pulverizer, and primary air fans.
Fichtner claimed that the power plant can operate at approximately 50 percent capacity on Thar Coal alone without any major modifications and with a 20 percent blending ratio the power plant can operate at 85 percent of capacity. If 100 percent operation of the plant goes on Thar coal, the equipment capacities need to be enhanced.
Since the study performed by Fichtner is a desktop study it requires further confirmation through on-site testing.
The study was shared with Port Qasim Electric Power Company which stated that blending of 20 percent with a derated capacity of 85percent is not a suitable option; however, in their calculations, up to 12 percent blending can achieve 100 percent load of the plant.
The PQEPCL further agreed to on-site testing as suggested by Fichtner starting from 10 percent blending and the final blending ratio to be adjusted as per the actual test; however, in their view increase in blending with a decreased load is not a reasonable option at this stage due to power shortages in Pakistan.
The PQEPCL had indicated that Thar coal has a high sulfur content that causes erosion of boiler water wall pipe, heating surface, air pre-heater, and ID fan which consequently decreases boiler service life. However, it can be avoided with anti-corrosion and other modifications in the system.
Further, the blending of Thar coal will increase the burden of the desulfurization system including but not limited to an increase in auxiliary power consumption, O&M cost, reduce system service life and such costs shall be borne by GoP. In addition, site roads, coal storage, coal loading, and unloading systems also need to be upgraded. — ERMD

TEL successfully achieves commissioning! Collective power generation of HUBCO, its group increase to 3251 MW

on 09/01/2023

Thar Energy Limited has successfully achieved commissioning, with the Commercial Operations Date (COD) to take effect from October 1, 2022, according to a filing by Hub Power Company Limited to the exchange.
TEL is a joint venture between The Hub Power Company Limited (HUBCO), Fauji Fertilizer Company Limited (FFC), and China Machinery Engineering Corporation (CMEC), formed for the purposes of establishing a 330 MW Mine-Mouth Coal-Fired Power Generation Complex at Thar Block II, District Tharparkar, Sindh, Pakistan (the “Project”) under the China Pakistan Economic Corridor (CPEC).
According to the notification, “The Project has successfully achieved commissioning, with the Commercial Operations Date (COD) to take effect from October 1, 2022, in terms of the Power Purchase Agreement dated July 27, 2017 (the “PPA”) entered into between TEL and the Central Power Purchasing Agency (Guarantee) Limited.”
With this achievement, the collective power generation capacity of the HUBCO and its group companies has increased to 3251 MW through the plants spread over Balochistan, Punjab, Azad Jammu, and Kashmir, and Sindh.
The Project will be generating low-cost energy from indigenous Thar Coal thus reducing the burden on national foreign exchange resource. Completion of the Project would have not been possible without the support extended by the Government of Pakistan, the Government of Sindh, the Government of China, and all other private stakeholders.
In August, Sindh Chief Minister Syed Murad Ali Shah had inaugurated the 330 MW HUBCO power plant which he said added 990 MW coal-fired power to the national grid to empower Pakistan with cheapest and indigenous source of energy.
The Sindh govt became the major shareholder in the first Thar coal mining company SECMC and also provided the financial guarantee required by Chinese lenders to achieve the financial close of the mine.
Shah said that his government had provided continuous support to Thar coal IPPs as well as mining companies and had ensured the provision of necessary infrastructure, including roads, bridges and on top of it Mai Bakhtawar Airport, so that these projects can function smoothly.
He said the government was also working to ensure ramp up of mine quickly and utilization of Thar coal for energy needs of other industrial sectors including cement, fertilizers and others.
Thar Energy Ltd. is a 330 MW Coal Fired Power Project based on Thar Coal and a part of China Pakistan Economic Corridor (CPEC). The Project is a joint venture among Hub Power Company Ltd (Hubco), Fauji Fertilizer Company Ltd (FFC), China Machinery Engineering Corporation (CMEC) and has been completed at a cost of US $520 million
It may be noted that foreign financing for the project was arranged from a Chinese syndicate, led by China Development Bank whereas local financing has been arranged via a syndicate led by Habib Bank Ltd.
The project started construction in May 2018 from sponsors’ equity without waiting for financial close to ensure the earliest utilization of indigenous Thar Coal.
The financial close of the project was achieved in January 2020. The project experienced delays due to delays in loan disbursement from Chinese lenders and later due to COVID-19 pandemic. – ER/MD

90 housing schemes in Sindh’s 5 districts detected unlawful

on 09/01/2023

Sindh Master Plan Authority has reportedly detected around 90 housing schemes in rural towns of Sindh that do not fall within its parameters.
Consequently, a report says the authority has issued notices to the builders of these schemes for getting their schemes regularized with the authority or face action.
These schemes are located in Matiari, Shaheed Benazirabad, Sanghar, Naushehroferoz, and Khairpur Mirs’ districts.
The authority believes these housing schemes of which 3 are in Matiari, 7 in Shaheed Benazirabad, 8 in Sanghar, 34 in Khairpur Mirs’, and 38 in Naushehroferoz district are illegal.
The authority is set to get the builders booked in the cases if they failed to pursue the regularization process.
Also, the utility companies such as Sui Southern Gas Company (SSGC), HESCO, and SEPCO have been communicated for not allowing these schemes to get their facilities. – ERMD

PIDE generating ideas, policy debate through PIDEAS

on 09/01/2023

Under the initiative of PIDEAS (PIDE IDEAS), Research for Social Transformation and Advancement (RASTA) program is producing documentary films based on the evidence-based research produced at the Pakistan Institute of Development Economics (PIDE) on pertaining public policy issues. In this regard, PIDE-RASTA has organized a documentary film screening event at the Islamabad Club. This was the first session in the documentary film series.
Federal Minister for Planning, Development, and Special Initiative Professor Ahsan Iqbal graced the event as the Chief Guest and acknowledged the role of PIDE in generating policy-informed debates on these critical yet neglected topics.
Professor Ahsan Iqbal also highlighted the significant role of the current government for youth by encouraging innovative ideas, providing opportunities, and creating an enabling environment for distinctive skills. The Youth Affairs Wing is playing an active and assertive role in materializing these objectives
The event was attended by relevant stakeholders, including academicians, policymakers, practitioners, development partners, civil society, and public and private sector representatives. “Research without debate is useless,” said Dr. Nadeem UlHaque, Vice Chancellor, PIDE. “PIDEAS initiative will help us to generate and disseminate research-based ideas, inform policy debate, and suggest actionable solutions for change and growth in Pakistan,” he added further.
The visual format has always remained one of the most engaging and key conversational tools for producing research, and in the wake of using this as an instrument for knowledge production and dissemination. Therefore, three films were screened at the event: Rethinking Urban Mobility in Pakistan based on PIDE research titled ‘Rethinking mobility (urban transport policy) in Pakistan’; An Unending Wait for Car: Own Money based on PIDE research titled ‘The Issue of Own Money’; and No Country for the Youth based on PIDE research titled ‘Opportunity to Excel: Now and the Future.
Mr. Muhammad AfnanAlam, Deputy Director General (Land & Estate), CDA led the debate on urban mobility in the context of Islamabad. The research-based film suggests that cities are the engine of growth because cities are where development and innovation happen. In addition, labor force, industries, and economic corridors exist in cities. For an effective transport and urban mobility policy, we need to highlight the areas of population, employment, densification, and intensification around our cities, followed by linking all these corridors with one another.
Mr. Razi-ur-Rahman, Group Director, Corporate Affairs of Atlas Group & CEO APL shared his views about Car Own Money. The research-based film suggests to eliminate the own money premium, the booking culture needs to be demolished. No vehicle can be sold or booked that has not been manufactured and is not available at the dealership. Furthermore, the supply needs to be increased through increased production by local manufacturers/assemblers and allowing selective imports of vehicles.
Ahmad Iqbal, Former Mayor of District Norowal was the speaker in the youth documentary. The research-based film suggests that Pakistan currently has the largest percentage of young people ever recorded in its history; more than 50 percent of the population in Pakistan are youth. The documentary highlighted the issues of youth unemployment, lack of opportunities, housing provision, and soft skills in Pakistan.
Earlier, PIDE’s Pro Vice-Chancellor, Dr. DurreNayab, in her welcoming remarks, said that through PIDEAS initiative, PIDE is stimulating content creators and filmmakers to articulate their artistic expressions and bringing research and policy closer to people.
According to the Press Release issued at the event, it was stated that the intent is to debate pressing public policy issues and facilitate engagements between different stakeholders to typify the issues of socio-economic significance, cross-fertilize ideas through knowledge sharing, and prescribe actionable ways forward.
Considering the overwhelming response from the audience and policy circles, we intend to continue such initiatives in the future, bringing policy closer to the people, and building the art-research-practice nexus in Pakistan, said Dr. Faheem Jehangir, Project Director of RASTA.
These films will be available on PIDE’s social media platforms soon for broader dissemination. — PR

SBP restrictions force shutdown of switchgear industry 200 manufacturers businesses, housands of jobs at stake: PEPMA

on 09/01/2023

The switchgear industry is in deep trouble due to the negligence of government authorities, the State Bank of Pakistan, and the Finance Ministry by restricting the import of raw material components and sub-components in chapter 85 (Subheading Especially 8535 & 8536 and others) and clearance of shipments at the port since last 3 months and constant currency depreciation, around 200 manufacturers businesses and thousands of employee jobs are on stake due to non-seriousness of authorities.
Pakistan Electrical Panel Manufacturers Association (PEPMA) highlighted that the switchgear industry is an integral part of the export industry, power energy and utility sector, local industry, and infrastructure of the country and its raw material is not luxury items, stopping this raw material will also restrict whole industry.
The industry directly or indirectly linked with switchgear manufacturers are NTDC, DISCOs, Government entities, Private Sector customers like Textile, Cement, Sugar, Rice, Floor, Ghee/Oil, Automobile, Steel Furnace, Rerolling, Healthcare, IT, Energy sector, etc.
This is much serious issue and PEPMA humbly requested the authorities to open the import with a smooth process of switchgear raw material items from immediate effect.
PEPMA is available for the future strategy to authorities for the establishment of a local manufacturing strategy of a similar item to reduce the import bill of the country. – PR