It will be noted that the Board, while appreciating the initiatives of the leading local industrial groups to invest in power generation projects, also observed that the local companies which had submitted proposals were of good financial standing and had diversified business experience.
In this regard, mention was specifically made of the four proposals, with a total capacity of 1,450MW, from Nishat Group, Atlas Group, Ibrahim Group, and Gulistan Group, which were approved, in principle, for further processing by the PPIB.
At the same time, PPIB also appreciated the interest displayed by the existing independent power producers (IPPs), pointing out that they were in a position to provide additional power within minimum time and at most competitive rates too.
Reference, in this regard, may also be made to its approval, in principle, to issuance of Letter of Intent (LoI) on the proposals submitted by Kot Addu Power Co, AES Lalpir/Pakgen, Southern Electric, Gul Ahmad, and Tapal Power for expansion of their existing generation units.
Notable, as such, was also the approval accorded to the proposal of Engro, a leading business giant in its own right, for setting up 150MW project at Daharki based on 75 MMCFD of permeate gas. It will also be noted that the Board extended the tariff negotiation's time of Mira Power Project for six months, from the three months it was earlier given to complete negotiations.
Another decision taken was to issue Letter of Support (LoS) to 200MW Orient Power project to be located at Balloki, near Lahore, and 123MW Star Power project at Daharki, in Sindh, the groundbreaking/construction of these projects expected shortly.
Coming in the midst of understandable increased energy demand in view of the unprecedented challenge of reconstruction and rehabilitation in the quake devastated areas, these decisions should inspire hope of a more vigorous and objectively planned concerted efforts to deal effectively with the energy famine as exacerbated in the aftermath of the utterly devastating quake calamity.
This should be all the more so, in view of the efforts already initiated to meet the already deepening energy crisis, with increasing reliance on alternate sources of energy, besides making the best of the formal sources, some of which may no more be fully depended upon to yield the earlier anticipated results.
Now that a new beginning appears to have been made in harnessing the huge, largely untapped coal resources for power generation, the award of Lakhra Coal Power project to Fateh Group can go a long away towards increasing exploitation of coal for the purpose.
Again, since the Thar coal from the mines being currently developed by the Chinese has been found ideally suited, essentially for power plants at the mine heads, it can provide a fillip to emergence of coal-based power plants. It will also be noted that, according to an earlier report, the Sindh government was asked to co-ordinate with the PPIB in issuance of licences and leases for the development of coal fields and setting up of coal-based power projects, in accordance with the 2002 power generation policy.
This was reported to have been based on a decision, taken during a meeting held with Water and Power Minister Liaquat Ali Jatoi in the chair. More to this, the minister was, then, stated to have reiterated the need for development of coal-based power projects in the country to increase the power generation capacity.
Notably, the PPIB had reported progress on various projects being implemented under the 2002 power policy, some provisions of which are stated to have been hampering efforts for boosting power generation under the existing circumstances.
Now that the importance of coal in power generation has been re-established, one would have every reason to expect that impediments in the way of its rapid development would be speedily removed to ensure smooth progress.
This has reference, among other things, to the problems standing in the way of another project, Habib Ullah Energy Ltd, which was reported last month to have refused to sign a 'technically lapsed' Letter of Interest (LoI), until the shifting of the 150 MW coal-based project site from Ghotki to Lakhra.
For it was then pointed out that the PPIB had received two alternative proposals from HEL for establishment of 157 MW gas-based combined cycle power project, or 150 MW coal-based project at Ghotki, in Sindh.
As far back as in February 2004, the proposal was discussed in the Secretaries Committee, wherein the project at Ghotki was approved. Accordingly, pre-qualification details of the sponsors were evaluated and the Board issued a Letter of Interest (LoI) to HEL on July 27 last to conduct the feasibility study for establishing a 150 MW integrated coal-mining-cum-power generation project to be located at Ghotki.
But soon thereafter HEL reportedly informed that the LoI had been accepted on the condition that an amendment for re-location of the project from Ghotki to Lakhra would be made.
However, PPIB while contesting that stand, keeping in view the essence of Power Policy 2002, which laid stress on power projects based on indigenous fuel, especially coal, was reported to have analysed the request from various angles, arriving at the conclusion that transportation of coal from Lakhra mines to a power plant at Ghotki would not be feasible for a number of reasons.
Many and varied being the hindrances in the implementation of power projects, now will certainly appear to be the time to provide a boost to coal-based power generation through efficient handling of such initiatives.