Electricity In Gwadar Through First Coal Fired Power Project Awaits Tariffs From NEPRA
Electricity In Gwadar Through First Coal Fired Power Project Awaits Tariffs From NEPRA: Gwadar first coal fired power project will generate electricity of 300 megawatts this month. In this regard, National Electric Power Regulatory Authority (NEPRA) is expected to declare tariffs by the end of this month.
CIHC Pak Power Company is developing coal-fired plant in Gwadar at an approximate cost of $542.4 million under the China-Pakistan Economic Corridor (CPEC). CIHC earlier sought levelized tariff at Rs8.49 per kWh for 30 years. The plant would generate 2,033GWh electricity annually. Gwadar’s deep water port and its surrounding areas have become a major part of CPEC. The Joint Cooperation Committee (JCC) for CPEC decided a 300 MW imported coal-fired power project and nominated the China Communications and Construction Company or its chosen subsidiary to undertake the development.
Currently, Gwadar depends on approximately 70MW of imported electricity from Iran. Out of that, around 14MW is allocated to Gwadar, while Makran coastal region utilizes the remaining 56MW. The electricity generates from an independent grid that connects Gwadar, Turbat, Panjgur and Pasni.
NEPRA in a meeting on April 24th will consider the tariff petition of CIHC Pak Power Company for the proposed 300MW coal-fired power plant. NEPRA would consider whether or not the engineering, procurement and construction cost of $369.89 million has been achieved through transparent and competitive bidding process. The proposed fuel cost component and delivered coal price of $101.8/ton, capital expenditure of $117.25 million, requested return on equity of 17 % and requested premium on Karachi interbank offered rate will be discussed. The project entails setting it up on a build own and operate (BOO) basis based on imported coal.
The chief executive officer of CICH Pak Power Company, Mr Xu, has assured the government that the project is built in accordance with international, national and provincial environmental standards and regulations and it would go a long way in developing Gwadar.
Gwadar’s strategic position will attract several industrial projects, which in turn will have significant requirements and demand of electricity. Keeping in view the strategic importance of the port city this coal power plant project was developed on rapid track basis.
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