Genco seeks tariff for 1320MW coal-fired plant

KARACHI: The Jamshoro Power Company Limited – Genco-I – has approached the National Electric Power Regulatory Authority (Nepra), seeking tariff determination for its $1.64 billion coal-fired power plant of 1,320MW to be set up in Jamshoro, a statement said on Monday.
The project will be sponsored and executed by Genco Holding Company Limited (GHCL), whereas the implementing agency Jamshoro Power Company Limited would also be responsible for operations and maintenance of the project.
These two units of 660MW each are expected to be the first of the new coal-fired power plants to be commissioned and will be able to contribute a gross generating capacity of 1,320MW, which is equivalent to 20 percent of the current electricity shortfall, at an approximate fuel cost of 20 percent and 30 percent relative to costs of HSD and RFO, respectively.
The feasibility study for this project has been completed by US Power Consult LLC and the PC-I has also been compiled and approved by the Ecnec.
Some 30 percent of the project will be financed through equity injected by the government of Pakistan through Genco I, whereas the remaining amount is to be secured through debt financing, it said.
To this effect, a significant portion of the required debt financing had already been arranged through a mix of financing facilities from the Asian Development Bank (ADB) and the Islamic Development Bank (IDB), whereas the remaining amount will be arranged through commercial debt arrangements.
The project has been estimated to be established at a total cost of $1.637 billion. On a gross per megawatt basis, the cost is equal to $1.241 million per MW.
As a condition precedent for the financing arrangements of the ADB and IDB, the project tariff needs to be awarded before initiating the process for EPC contracting, it said.
The project will initially utilise imported sub-bituminous coal till such time that extraction of lignite from Thar commences and is available for commercial use.
The project has an estimated construction time of 48 months, subsequent to commencement of construction. The estimated life of the project is 30 years, it added.