Chinese firm to operate Nandipur Power Plant

ISLAMABAD: The government on Monday signed a long-term operation and maintenance (O&M) agreement for 425 megawatts Nandipur Power Plant with a Chinese company for ten years.

Northern Power Generation Company limited (NPGCL) which is a state owned corporate entity working under the management of the GENCO Holding Company Limited and M/s Hydro Electric Power System Engineering Company of China (HEPSEC) signed the agreement for a period of ten years or two major inspections, whichever is later, a news statement issued here said.

The decision to outsource the operation and maintenance of the Nandipur Power Plant is in pursuance of the recommendations of the Regulator, and a policy decision by the government to outsource the operation and maintenance of new power plants to experienced international operators in line with prevalent industry practice in order to reduce expenditures, and to bring about latest and efficient practices in power plant management.

The Nandipur Power Plant has been fully operation since its commercial operation date (COD) in July 2015 and it is currently operating on furnace oil. Work is already underway to convert the Plant’s operation to natural gas. To this end, 88KM pipeline is being laid and work is also ongoing on the Plant site to convert the Plant to gas operation.

The Plant’s conversion to gas operation, which is expected to be completed by the end of April 2017 will significantly improve Plant performance, reduce operating costs, and result in overall improvement.