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6600MW Gadani Power Park worth Rs147b could attract only six firms

6600MW Gadani Power Park worth Rs147b could attract only six firms

ISLAMABAD: Only six companies have submitted their Expressions of Interest (EoIs) against imported coal based Independent Power Producers (IPPs) of cumulative capacity of 6600 MW to be set up at Gadani Power Park in Balochistan.

The EoI opening ceremony was held at Private Power & Infrastructure Board (PPIB), which was attended by the acting PPIB Managing Director Shah Jahan Mirza, Additional Secretary M/O Water and Power Omer Rasul, Executive Directors, Directors of PPIB, representative of Pakistan Power Park Management Company Limited, senior government officials and representatives of the bidding companies.

According to a handout, the EoI were received in response to PPIB advertisement to develop a flagship project of the government to produce cheaper electricity. Last date for submission of proposals was October 31, 2014. The cost of the project has been estimated at Rs146.627 billion ($1.488.6 billion) with a 15 percent GoP equity and an 85 percent debt financing as foreign loan.

The companies which submitted their EoIs are China Gezhouba Group Company Limited; Genting Energy, Malaysia; China Machinery Engineering Corporation, China; ANC Holding of Dubai, the UAE; China Huadian Engineering Company Limited, and Harbin Electric International.

According to officials, an independent consultant will review these proposals according to the predefined criteria, and notification of qualified bidders is expected to be issued within a month.  Federal government intends to establish ten coal-fired power plants, at Gadani around 20 kilometres away from Karachi, through financial and technical assistance from China. Sindh government has expresses serious concerns over the project and said that the construction of these plants will result in pollution and pose serious health risks to over 20 million people living in Karachi. Provincial government has suggested that these projects should be relocated to the Thatta district.