KESC coal project accomplishes milestone

November 8, 2013 Off By Web Desk

Karachi: Karachi Electric Supply Company’s Coal Conversion Project accomplished a major milestone on Friday when K-Energy Ltd, a company of KESC investors, signed the first-ever EPC contract in Pakistan for conversion of two units of the utility’s Bin Qasim Power Station No. 1 to coal with Harbin Electric International of China. The project demonstrates

KESC’s commitment to pioneer coal conversion of power plants in the country, and is in line with KESC’s vision to bring down power tariff by utilizing low cost fuel sources for electricity generation.

Under this Engineering, Procurement and Construction Agreement, the Harbin Electric International would construct new coal fired boilers and their interconnection with the existing Unit Nos. 3 and 4 of BQPS-1. Following the achievement of this significant milestone, KESC and its partners in the project would be actively pursuing necessary approvals which include the tariff application that have been pending before NEPRA for some time.

The Project would take approximately two and half years to complete and once online, would result in generation of reliable and cheap electricity for the advantage of the citizens of Karachi. The conversion project would also directly benefit the country’s economy since this would replace power generation by expensive furnace oil thereby saving on account of oil import bill through utilizing coal at significantly cheaper price.

No other power company in the country has yet signed an EPC Contract for coal conversion, though some feasibility studies have been conducted for pipeline projects. K-Energy Ltd has specifically been formed by KESC project investors to undertake the coal conversion venture. Harbin Electric International is part of Harbin Electric Corporation, one of China’s largest enterprises in power project contracting and export of power equipment. Their portfolio includes several power and manufacturing wings and have extensive experience in Pakistan and the region.