K-Electric (KE) has signed a contract with a joint venture of Chinese and German firms to build a 900 megawatts dual-fired power plant with an investment of $650 million.
The contract was signed in Chinese city Harbin by KE CEO Moonis Alvi, Siemens Executive Vice President Dr. Keramat Fakhari and Harbin Electric Chairman Guo Yu. KE said although the project timeline has been affected due to delay in finalisation of KE’s multi-year tariff, the power utility is determined to execute it on a fast track and additional power to be made available by summer 2021.
The project, BQPS-III of 900 MW will be built at KE’s Bin Qasim Power Complex and includes upgrades to associated transmission infrastructure. It will be dual fired with re-gasified liquid natural gas as the primary fuel and represents one of the largest private sector investments of its kind in the country’s power sector.
In addition to this, K-Electric is also in talks with the government to increase the supply from national grid and in this regard discussions for supply of 500MW from KANUPP-2 and KANUPP-3 are in advanced stage. Speaking at the occasion, Moonis Alvi said, “The 900 MW BQPS-III is essential in meeting Karachi’s future energy demands. An investment of the size and magnitude of BQPS-III is a testament to KE’s commitment to improving the reliability of power supply for its customers.”
Notably, Harbin Electric Chairman Guo Yu said Harbin Electric International has accumulated rich project execution experience since it entered the Pakistani power market in 1983, and has completed more than 10 projects in the fields of hydropower, thermal power and combined cycle power stations.
“We’re proud to be supporting the energy needs of Karachi with efficient, environmentally friendly technology for power generation, such as the SGT5-4000F gas turbines renowned for high performance and low-cost power generation” said Helmut von Struve, Managing Director and CEO of Siemens in Pakistan.