EPC contract for 660MW Jamshoro coal power project awarded

ISLAMABAD: Government on Thursday awarded $562 million worth of engineering, procurement and construction (EPC) contract for setting up 660 megawatts of coal-fired power plant to a joint venture of Siemens and Chinese Harbin Electric International (HEI).

“The EPC contract for the first unit having capacity of 660MW (out of two units of 660MW each) and five-year O&M (operations and maintenance) contract of 1,320MW Jamshoro coal fired power project was signed between Jamshoro Power Company Limited (JPCL) and the Siemens-HEI joint venture,” a government statement said. “EPC contract price for unit 1 of 660MW and balance of plant is $562 million.”

The contract for the first unit was signed in the presence of the secretary ministry of energy (power division), chief executive officer of Genco Holding Company, the commercial counsellor of China and other officials.

Asian Development Bank (ADB) is funding the unit one, which is expected to be completed within 3.5 years.

State-owned JPCL plans to build a 1,320MW super critical coal-based power plant within the existing premises of thermal power station at Jamshoro. Genco Holding Company Limited (GHCL) is the executing agency while JPCL is the implementing agency of the project.

“This will be the first supercritical coal fired power project in public sector to be installed at Jamshoro,” the statement added.

Muhammad Imran, chief executive officer of GHCL said the project will use 80 percent of imported sub-bituminous coal and 20 percent of local Thar lignite and, “as a result, cheaper energy will be generated to meet the future electricity need of the country.”

EPC contract price of unit 2 of 660MW and expansion of balance of plant is estimated at $313 million, which will be signed in next phase once financing arrangement is finalised.

Imran said the arrangement for financing for the second unit of similar capacity is underway at advanced stage and EPC will also be signed very soon to bring both units as quickly as possible. He acknowledged the support extended by the Power Division, Ministry of Energy, ADB and other stakeholders to achieve this historic milestone. CEO GHCL hoped that all stakeholders will work as the team to complete the project within 42 months.

Yousuf Naseem Khokhar, secretary of power division also appreciated the efforts of the teams from ADB, GHCL and JPCL to achieve the milestone of contract signing of the project. He hoped that the project will be a major milestone to achieve a good fuel mix for the country.

In January, the Economic Coordination Committee of the cabinet approved issuance of government’s sovereign guarantee for Rs39 billion for the construction of the coal plants. The approval has been granted after third party evaluation of the project and authentication of the projected demand and supply data submitted by National Transmission and Despatch Company, the committee said in a statement then.