Power supply to Bin Qasim Industrial Park linked with Rs500mln payment to KE

KARACHI: K-Electric on Saturday linked power supply to Bin Qasim Industrial Park with the receipt of at least Rs500 million needed to initiate construction of a 64 megawatts grid from the investors.

KE said it was to receive Rs500 million to initiate construction of a 64MW grid at the designated zero point at Bin Qasim Industrial Park (BQIP) – a 50-acre project on Pakistan Steel Mills land – along with a portion of costs that four businesses operating in the zone volunteered to pay under a memorandum of understanding (MoU) signed in February.

“As clearly mentioned in the MoU, energization of urgently needed 11KV (kilovolt) feeders of the four zone enterprises is subject to the receipt of both these payments,” KE said in a statement. The MoU was signed with the National Industrial Parks Development and Management Company (NIP), the operator of the special economic zone.

“It is the developer’s responsibility to construct a grid to enable utility to provide electricity. However, no grid has been constructed by NIP in the facility,” KE said.

In February, the NIP said the responsibility to fund the grid lies with federal government and that NIP would move a request/summary for obtaining funding support from federal government. It was expected that a formal commitment for release of funds would be shared with KE by 21 March.

“A formal approval and confirmation of release of funds… is still awaited,” KE said.

NIP approached KE for construction of grid and an ‘interim’ power request of 4MW with written confirmation that NIP would construct grid in case of any additional power needs.

KE said it has provided the interim supply. “Moreover, when NIP approached KE for an additional power requirement, a cost estimate for laying of transmission lines, building grid station, and supply of electricity lines at BQIP was duly shared by the power utility.”

KE estimated an initial cost of Rs1.8 billion for an 80 MVA (64MW) grid and 132KV transmission line, extendable as per future needs.

KE said it initiated preparatory work even before signing of the MoU.

The power utility also offered to jointly present the technical and cost structure of grid to federal government or the Economic Coordination Committee along with NIP.

KE further offered NIP an installment facility with work to commence upon receipt of first installment of Rs 500 million. Another option shared was submitting a bank guarantee.

“Unfortunately, NIP has not provided any of the above to KE till date,” KE said. “Few businesses operating in the zone are creating false impressions, spreading incomplete information.

These businesses had earlier also attempted to put undue pressure on KE through various tactics to circumvent or violate policies and regulations.”

KE said the power utility continues to remain committed to powering industrial growth and facilitating industrial customers in the best interests of economic prosperity, through efforts which include exempting them from load shedding, meeting their growing power demand, reducing turnaround time to provide new industrial power connection and conducting energy audits to help them improve their energy efficiency.