KE allocates Rs26bln to improve distribution network

KARACHI: K-Electric has earmarked around Rs26 billion under its plan to upgrade infrastructure, strengthen service delivery and mitigate disruptions during the coming year, the company said on Tuesday.

KE’s directors approved an investment of Rs9.5 billion for rain mitigation measures. Of the total amount, Rs1.5 billion would be spent in the first year of the mitigation plan, which is over and above the budgeted investment of Rs24.4 billion for the upgrade of infrastructure and advancement of protection in the distribution network in 2021, the company said in a statement.

“K-Electric is pursuing an aggressive distribution investment plan. These measures include raising the foundation of distribution infrastructure, waterproofing of highlighted substations and replacement of equipment and cables and increasing the capacity to augment the dewatering efforts made by civic agencies particularly in areas prone to waterlogging,” it said.

“To provide reliable and safe electricity to the city of Karachi and its surrounding areas, KE teams have already commenced upgrade and renovation work in some areas.”

The utility took certain other measures to ensure provision of uninterrupted power supply and quicker restoration going forward.

In August, the company secured Rs25 billion through shariah-compliant bonds, the country’s largest private sector issue in the capital market. Out of the targeted Rs25 billion, KE had earlier raised Rs23.7 billion via a pre-initial public offering (IPO). The remaining amount of Rs1.3 billion was offered through IPO to the public, with a minimum subscription of Rs5,000 per certificate.

The utility has an ambitious investment plan under which $2 billion would be spent across the city’s energy value chain over the next 3 years, including establishment of a 900MW RLNG-fired power plant and downstream transmission and distribution upgrades.

KE says it has invested around Rs335 billion since its privatisation in 2005. The power generation capacity has been increased by 1,057 megawatts to 3,202MW presently, while transmission and distribution network has also been improved.

A special committee constituted by the broad has also recommended formal engagement with all concerned stakeholders, “which will lead to greater collaborative efforts and ensure that all parties play their due role in preparing for the next monsoon season such as clearance of the city’s storm drains and removal of impediments to the same as well as removal of encroachments and impediments that hinder KE’s ability to conduct maintenance, upgrade and restoration work before and during the rains,” said KE.