Pakistan's Energy & Water - News and Updates

[Omar1984]

Time to build Kalabagh Dam


India has quickened the construction work on three major dams on River Indus including Nimo Bazgo as part and parcel of its plan of turning Pakistan into an agricultural wasteland. Already the controversial Baglihar Dam is in its completion process and with it India will be able to divert water allotted to us by the Indus Waters Treaty.

Apart from these dams, there are over 60 others. Even small canals and tributaries flowing into Pakistan are being diverted to India. With Baglihar Dam, India will be able to block Pakistan’s water supply for 25 days, a period that is long enough to play havoc with our agriculture during one of the main crop seasons. With Kishanganga Dam on River Neelum, the entire Neelum Valley and the areas downstream that depend on this river for survival will become water starved. Experts have warned that since the area under cultivation all across the country will reduce dramatically in the days ahead owing to Indian dams, our agriculture would suffer catastrophically and a debilitating food crisis will usher in. This is no exaggeration because already a number of tributaries and rivers that were once flowing with water are now paved with sand and grass. What is the government doing? Absolutely nothing! It only messed up our case recently during proceedings in the International Court of Justice. On the other hand given the fact that oil prices keep on increasing in the international market we need to switch from thermal based energy to hydel if we are to save the economy. There is a danger that the oil prices might shoot up to $ 250 dollars if sanctions are placed on Iran by the US and EU. These fluctuations only prove the point that it is inadvisable to rely on oil to run power plants in the long term.

It is high time the leadership built consensus on Kalabagh Dam to proceed with its timely construction. In the years ahead Tarbela as well as Mangla dam’s storage capacity will become virtually nil because of sedimentation. It is only Kalabagh Dam that can produce cheap electricity, will have a life of several centuries given its unique location, and most importantly it will play a major role in controlling floods. It is also the best way to prepare for water shortage arising out of India’s construction of 60 dams on Indus. With the benefits it has to offer is it not a betrayal to the nation to ignore such a vital project?



Time to build Kalabagh Dam | Pakistan | News | Newspaper | Daily | English | Online

 

[Omar1984]

Govt releases funds for Bhasha Dam only

ISLAMABAD - Contrary to the tall claims of government to resolve power crisis, it has released funds for a single power project out of 43 during the first five months (July-November) of the ongoing financial year 2011-12, it has learnt on Monday.

According to documents of the Planning Commission of Pakistan, the government has released funds only for one of the mega projects “Construction of Diamer Bhasha Dam project land acquisition (4500MW)”, among total 43 developmental projects set for the current fiscal years.

However, the government did not release single penny for other 42 power projects.

According to figures, some of the power sector projects are the foreign funded and some are local funded projects.

Finance Ministry’s official told The Nation that majority of the projects are foreign funded that would start when we get financial aid or loan from the other countries and donors agencies including World Bank and Asian Development Bank and others.

Meanwhile, according to documents, the government has released Rs 74.7 billion for the PSDP during the five months period (July-November) of the ongoing financial year 2011-12. The government had allocated Rs 300 billion for PSDP for the ongoing fiscal year, wherein Rs 10 billion is allocated for the Earthquake Rehabilitation and Reconstruction Authority (ERRA).

According to the break-up of Rs 74.7 billion released during the first five months (July-November) of the ongoing financial year 2011-12, the government has released Rs 37.6 billion for infrastructure against the overall allocation of Rs 157 billion.

Meanwhile, the govt has released Rs 36.6 billion for social sector against overall allocation of Rs 129.6 billion and Rs 0.695 billion has been released for other sectors against the total allocation of Rs 3.3 billion for the whole financial year.


Govt releases funds for Bhasha Dam only | Pakistan | News | Newspaper | Daily | English | Online

 

[Jango]

News is rife on TV channels, that according to SNGPL sources, CNG to CNG stations is going to be suspended for two months of January and February to accommodate the acute gas shortage, and give gas to homes and industry.

 

[faisaljaffery]

Slow release of funds results in poor development in the country. Current govt is not releasing funds as per allocations made in budget.

 

[Omar1984]

IDB/Pakistan: US$ 140 million Wind-power Project for Pakistan among US$ 322 million Funding Approvals by IDB Board

JEDDAH,17 Safar/Jan.11 (IINA)-The Islamic Development Bank (IDB) has extended US$ 140 million funding for a pioneer project to produce wind-powered electricity in the Sindh Province in Pakistan. This financing is part of the overall US$ 321.8 million the Board of Executive Directors of the IDB approved at its 280th session for various development projects in member countries and for Muslim communities in non-member countries. The meeting that started on Sunday 8 January was chaired by IDB Group President, Dr. Ahmad Mohamed Ali.

The package of new approvals also includes US$ 50 million investment (which be raised to US$ 150 million at a later stage) in the Arab Financing Facility for Infrastructure (a joint initiative between IDB and the World Bank’s IFC), as well as financings for other projects in Uganda (US$ 30.7 million for the Mulago Referral Hospital Project), Egypt (US$ 32.3 million for the National agriculture Subsurface Draining Project) and Tajikistan (US$ 17.5 million financing for Secondary Schools Development Project). Grants of up to US$ 1.295 million for educational and health projects for Muslim communities in China, Northern Cyprus, Ethiopia, India, Venezuela and the Philippines were approved by the Board.

The Board also reviewed a progress report on its “initiative for Creating job opportunities for the youth in Arab countries” which included US$ 50 million SMEs financing for the Social Development Fund in Egypt, similar to the amount earlier approved to support creating job opportunities for the youth in Tunisia.

The meeting reviewed the IDB’s proposed operations growth and resource requirements for the ten-year period (2012-2021) including plans and strategies for resource mobilization during the year 2012, approving a proposal for US$ 3 billion hike in the volume of the mid-term Sukuk Program (from US$ 3.5 billion to US$ 6.5 billion). This is justified by the success met by the IDB Sukuk issuance, thanks in particular to the AAA rating that IDB is enjoying from the major rating agencies.

Finally, the upcoming 37th Annual Meeting of the Board of Governors of the IDB slated for April 3-4, 2012 in Khartoum, Sudan was also discussed during the session.

AH/IINA


IDB/Pakistan: US$ 140 million Wind-power Project for Pakistan among US$ 322 million Funding Approvals by IDB Board

 

[Omar1984]

Neelum-Jhelum project: Pakistan negotiating $448m loan with China

About 30% of the work on the project has been completed and it is expected to meet its 2016 deadline, according to Wapda Chairman Shakeel Durani. PHOTO: FILE


ISLAMABAD:
Pakistan and China are negotiating a $448 million loan to help finance the 969-megawatt Neelum Jhelum hydropower project, which has run into cash flow problems owing to bureaucratic delays. Those delays have caused the cost of the project to rise to Rs330 billion ($3.7 billion).

This revelation was made by Economic Affairs Secretary Wajid Rana at the signing ceremony of a subsidiary loan agreement between the economic affairs division of the finance ministry and the Neelum Jhelum Hydropower Project Company (NJHPC), a wholly owned subsidiary of the Water and Power Development Authority set up to manage the project.

“After a significant increase in the required foreign currency component to the build the project, Pakistan is negotiating with various stakeholders to meet the rising costs,” said Rana.

The agreement signed on Monday is a legal requirement for the $40 million loan that the project has obtained from the Kuwait Fund for Arab Economic Development. The loan was extended in November 2010 but had not been disbursed due to the government’s delay in signing the subsidiary agreement. Rana signed the agreement on behalf of the finance ministry and CEO Muhammad Zubair signed it on behalf of the NJHPC.

“The $40 million will partly resolve the cash flow problems of the Neelum-Jhelum project,” said Rana, adding that the required foreign funding for the project has increased to $1.8 billion from $ 1.1 billion.

The Neelum-Jhelum project is located near Muzaffarabad and is expected to generate 969 MW when completed. The major financiers of the project include the Kuwait Fund, the Export Import Bank of China, the government of the UAE and the Saudi Fund for Development.

The project had originally been budgeted to cost Rs130 billion, but the costs have since skyrocketed by 154% to Rs330 billion. In the revised plan submitted by the water and power ministry, the main reason for the spike in costs is attributed to a change in design, but a detailed examination of the figures shows that the primary cause for the increase was the delay in completion.

For instance, the government signed the loan agreement with Kuwait in 2010 but was unable to complete the formalities on it until early 2012 and ended up having to pay commitment charges owing to the delay. Officials at Wapda seemed to acknowledge this problem.

“The design change has increased the project cost by Rs17.6 billion, and in order to fast track the project, tunnel boring machines worth Rs8 billion were bought,” said Wapda Chairman Shakeel Durani. He explained that the design was changed after the 2005 earthquake. Under the original design, the Muzaffarabad faultline would have passed directly under the water storage area.

Both of these, however, account for only 12.8% of the increase in the project’s cost. About Rs30 billion was spent on interest paid during the construction period. Another Rs11 billion will be spent on the operations related to the tunnel boring machines. About Rs38 billion has been added to the cost to take into account the depreciation of the Pakistani rupee and another Rs38 billion due to ‘escalation’.

Durani claims that after adding all of these costs in, Wapda would be able to finish the project within the revised Rs330 billion price tag.

Zubair explained that, given the delays in the project, buying the tunnel boring machines was necessary. He claimed that about 30% of the work on the project had been completed and that it would meet its 2016 deadline. The government claims that unless it is able to achieve that deadline, Pakistan would lose water rights to India, which is also constructing the Kishanghanga dam.

The CEO claimed that the project would earn about Rs45 billion in revenues annually and would therefore be able to recover its cost of construction within seven years. He appeared to be unable to distinguish between revenues and profits and therefore was not taking into account the project’s operating costs.

Published in The Express Tribune, January 31st, 2012


Neelum-Jhelum project: Pakistan negotiating $448m loan with China – The Express Tribune

 

[VCheng]

Such large infrastructure projects are always subject to financing constraints, and mismanagement such as that highlighted above is only typical, sadly, that adds to delays.

The IP project is another example of a crucial energy infrastructure program languishing because of financing delays.

 

[BATMAN]

^^ No one trust PPP.

It was clearly seen when no state of the world shows their distrust over the govt.

There was almost nill collection in Gilani / Zardari account. This shows not even PPP members trust these two gentlemen.

How we expect any foreign body / state to trust the known theives?

Cameron should count his fingers after shaking hands with Pakistan's Zardari | Mail Online

 

[VCheng]

It is not just these two individuals, the overall reputation of Pakistan, is itself not exactly stellar these days, is it?

 

[BATMAN]

It is not just these two individuals, the overall reputation of Pakistan, is itself not exactly stellar these days, is it?

Sure, if Pakistan chooses thieves to represent it than we shall not be surprised at results.

Infact, Our foreign ministry failed us more than these two individuals.

 

[VCheng]

Sure, if Pakistan chooses thieves to represent it than we shall not be surprised at results.

Infact, Our foreign ministry failed us more than these two individuals.

Well, I am certainly not surprised at the results, which speak for themselves in many areas in addition to foreign policy.

 

[Omar1984]

Innovation: Solar irrigation system for Balochistan

Federal Minister for National Food Security & Research will start pilot project in selected districts of Balochistan. PHOTO: FILE

ISLAMABAD: Ministry of National Food Security and Research has planned to introduce a pilot project of Solar Irrigation Pumping System in selected districts of Balochistan at an initial cost of Rs520 million.

Sources in the ministry said that Federal Minister for National Food Security and Research Mir Israrullah Zehri would take the pilot project to his own province and introduce it in selected districts of Balochistan.

Major chunk of the project cost worth Rs492 million will be borne by the federal government and Rs28 million by the amers/beneficiaries. Under the project, as many as 190 solar pumps will be installed. According to the documents available with The Express Tribune, the objective of the project is bringing potential areas under cultivation, generating livelihood and improving the socio-economic conditions of the farmers/community. The water will be used for both irrigation and drinking purposes.

Lack of water severely constrains agricultural development in Balochistan, according to some reports only 1.5 million hectares of Balochistan’s 35 million hectares are under cultivation.

Published in The Express Tribune, February 2nd, 2012


Innovation: Solar irrigation system for Balochistan – The Express Tribune

 

[Omar1984]

Zulfikarabad land to be used for wind energy

Karachi The Sindh government is contemplating utilising the lands reserved for the proposed Zulfikarabad city in the coastal belt of Thatta for wind energy projects, The News learnt on Sunday.

The proposal came under deliberations during a recent meeting at Sindh Secretariat for setting up wind energy projects in different areas of the province.

The secretary investment told the meeting that more than 300,000 acres of land had been allocated for Zulfikarabad Development Authority (ZDA), which could also be utilised for wind energy projects. He said that a meeting scheduled between the chief secretary and the managing director ZDA would work out modalities for utilizing the Zulfikarabad land falling in the wind corridor.

Federal Secretary Water and Power Imtiaz Kazi stated that recently there had been an increased interest by local and foreign investors to opt for fast-track land allocation, which requires furnishing a bank guarantee of $300,000 per 50 megawatt (MW) to the effect that these projects would start commercial operations by Mach 31, 2013. He further informed that the list of such projects had been sent to the Sindh government vide federal government and the Ministry of Water and Power.

During the meeting, the deputy commissioner Thatta proposed that since most of the government land in Jhimpir had been allocated for wind energy projects, it would be advisable to enter into lease agreements with the private land owners in the area so that a maximum number of projects could be accommodated in the Jhimpir area.

Chief Secretary Sindh Raja Muhammad Abbas said that the Sindh government has already allocated land for 29 wind energy projects in the wind corridor of the province and the project sponsors were being facilitated through the Sindh Board of Investment. The meeting decided that the deputy commissioner Jamshoro would identity at least 10,000 acres of government land.


Zulfikarabad land to be used for wind energy - The News

 

[Hyde]

Pepco buying 43pc electricity from furnace oil fired plants at Rs16/unit

ISLAMABAD: Pakistan Electric Power Company (Pepco) is reportedly purchasing 43 percent electricity from furnace oil fired plants at Rs 16 per unit which is 6856 percent more expensive than hydel power whose per unit cost is 23 paisa and its share is about 16 percent in total generation of plants supplying electricity to National Transmission and Dispatch Company (NTDC).

The actual price of hydel electricity is about 18 paisa per unit and after inclusion of inefficiencies, transmission and dispatch losses its cost is about 22.5 paisa per unit.

The share of electricity being generated at High Speed Diesel (HSD) is about two percent but its price is Rs 19.5 per unit.

President Asif Ali Zardari, in his address to Parliament claimed that the present government has added another 3300 MW in the system, but he did not mention that most of these projects were initiated during Musharraf regime. Incumbent government has added only a couple of hundred megawatts to the system.

Full Article: Pepco buying 43pc electricity from furnace oil fired plants at Rs16/unit

 

[SHAMK9]

PM inaugurates Rs 1.38 bln Sui gas project in Ali Pur
Prime Minister Syed Yusuf Raza Gilani Saturday inaugurated Rs 1.38 billion Sui gas project that would benefit majority of the population in NA-178, 179 and 180 constituencies of district Muzaffargarh.

The Sui gas facility was already available in Muzaffargarh city, Khangarh city, its surroundings, and Shah Jamal and the newly completed project has ensured availability of this facility to majority of the rest of the population.On this occasion, the Prime Minister announced to complete all the schemes of strengthening of embankments including Langar Wala, and establishment of an information technology campus.Gilani announced Rs 160 million development funding including Rs 100 million for 25 kilometre long road schemes, Rs 50 million for village electrification schemes and Rs 10 million for construction of Mochiwala road.

Sindh govt to allot 26,000 acres for windmills
Sindh government has decided to allot 26,000 acres among 12 investors which include four local investors and eight foreign investors who are bound to generate 3,000MW power within 18 months.

This was decided in a meeting chaired by Chief Minister Sindh Syed Qaim Ali Shah regarding grant of state land for producing Alternate Energy through construction of Wind Mills held at the Chief Minister House on Monday.

It was informed that there is precious corridor of wind in Jhimpir and with energy generation, employment opportunities will be generated. It was decided that new investments in windmills will be finalised after talks with federal government while the previous allotments will be continued in consultation and cooperation of the allotees.

The meeting was attended among others by Chairman Sindh Board of Investment Zubair Motiwala, Chief Secretary Sindh Raja Muhammad Abbas, Additional Chief Secretary (P&D) Malik Israr, Senior Member Board of Revenue Sindh Shahzor Shamoon, Secretary Finance Sindh Naveed Kamran Baloch, Secretary Land Utilization, Secretary Sindh Board of Investment Naheed Shah, Deputy Commissioners of Thatta and Jamshoro and Coordinator (BOR) Nazar Muhammad Leghari.

The meeting discussed in details the old and new policy for grant of Land specifically for Wind Power Project. Earlier, Secretary BOI Naheed Shah Durrani in her view point and Secretary Land Utilization (BOR) Sindh Ghulam Mustafa Phul in his briefing pointed out statement of conditions for allotment of Land for Wind Power Project in Thatta and Jamshoro districts. In easement policy, he said that land was being allotted in blocks for 30 years lease at the rent of Rs500 per acre per annum for first ten years. He further informed that only area under direct impact will be leased which include turbine, switch room, service road, electrical cables and service facility.

He further informed that minimum rent of Rs50 per square yard per annum will be charged.

The chief minister stressed that efforts be made for power generation from coal together with the alternate energy to be obtained through construction of windmills.

New 375-MW hydropower station at Warsak

The consultants of Pakistan Water and Power Development Authority (WAPDA) have suggested constructing a new underground hydropower station of 375 mega watt (MW) at Warsak as replacement for the existing power house of 243 MW. Till commissioning of the new power station, the existing power house will also continue to operate, wherein only the most-required rehabilitation works will be carried out.

The consultants, comprising a Canadian and a Pakistan firm, have been tasked to the review of the dam, spillway and detailed engineering design of the new Warsak Power Station by the end of 2012, which will be followed by initiation of construction work on the project. The proposed 375-MW Warsak Hydropower Project is a component of the two-pronged strategy being implemented by WAPDA on priority for optimal utilisation of the water resource to inject low-cost electricity to the National Grid. Under the strategy, WAPDA is, on one hand, constructing new hydropower projects, and on the other hand, rehabilitating and upgrading its old hydel power stations. Currently, up-gradation of Jabban and Tarbela is underway, while feasibility study for rehabilitation of Mangla Power Station has also been completed, which recommends that generation capacity of Mangla could be increased to 1310 MW from the existing 1000 MW. It is pertinent to mention that the existing Warsak Hydel Power Station is located on the River Kabul 30 kilometres from Peshawar.