Karachi Electric (KE) has announced $1 billion investment in power generation and upgradation of transmission infrastructure.
KE will build a 900 MW power plant and upgrade associated transmission infrastructure. It will be the largest private sector investments of its kind in the country’s power sector.
A statement issued by KE said that this 900 MW plant will be dual fired with primary fuel expected to be RLNG (Re-gasified Liquid Natural Gas). Power from the plant may be added to supply as soon as the summer of 2018.
The investment for the 900 MW plant and associated transmission upgrades is in addition to over $1.4 billion which has already been invested since 2009 by KE. As a result of these investments, KE has substantially improved services for Karachi’s consumers and businesses.
Amongst other initiatives, the company added 1,057 MW of generation, reduced transformer trips by 58% and reduced line losses from 36% to 22%.
These improvements have enabled the company to make 61% of Karachi load-shed free (from 23% in 2009), including all industrial customers, and reduce the duration and frequency of outages by 45% and 41% respectively (from 2011). K-Electric additionally created 29 Integrated Business Centers (“IBCs”) to improve and enhance customer engagement.
The power utility is also taking major steps towards enhancing transformation capacity and improving the reliability of power supply to its customers. The development work of TP-1000 (Transmission Enhancement Plan), a $450 million project, is progressing on a fast track.
CEO KE Tayyab Tareen said that their aim was to commission the project in the fastest possible time and they were confident that with the right facilitation from all quarters, power from the plant would be added to supply as soon as the summer of 2018.
“The 900 MW BQPS-III is a big investment for KE but our conviction is that this is essential in meeting Karachi’s immediate energy demands.” Tayyab Tareen added.
Chairman KE and Managing Partner The Abraaj Group Waqar Siddique, said that an investment of the size and magnitude of BQPS-III once again reinforces Abraaj’s commitment to improving the lives of KE customers. Shanghai Electric Power (SEP) is also on board on this project.
“SEP a potential incoming investor, have also expressed complete confidence in this project and fully endorses K-Electric’s vision for Karachi’s transformation. This 900 MW project marks the beginning of a multi-billion dollar investment plan which is set to accelerate Karachi’s economic potential.” Waqar Siddique said.
Chairman Shanghai Electric Power (SEP) Wang Yundan, stated that Shanghai Electric Power issued a fresh public announcement of their intention to acquire up to 66.4% shares of KE.
“We are actively following KE plans which have been comprehensively outlined in their Multi Year Tariff review petition. This is indeed an exciting milestone and we fully endorse their vision for Karachi. SEP looks forward to leveraging its strengths as a strategic investor to further realize K-Electric’s potential in providing better services to the people of Karachi.” Wang Yundan said.
The power utility remains fully committed to better serve the people of Karachi and to ensure the growth of economy of Karachi and Pakistan.