KESC to buy power plants from Russia

Karachi Electric Supply Corporation (KESC) has decided to purchase ten 100-MW power plants worth billions of rupees from Russia to generate an additional 1000-MW supply to overcome a serious loadshedding crisis in the city, sources told Business Recorder on Wednesday."KESC would be able to overcome power shortage after the installation of these power plants in different areas," sources said. The Board of Directors of KESC in its last meeting recommended to the corporation to make a deal with a Russian-based company to acquire the plants.Sources said that KESC administration was under severe criticism while the Supreme Court had also given clear-cut directives to the utility agency to improve its performance. "It was decided in the meeting that immediate steps would be taken in this regard to seek an end to power crisis," they said. A proposal, which was approved and highly appreciated in the board's meeting that 10 power plants, each plant of 100-MW capacity, would be obtained from Russia.Karachi will get a total of 1000-MW power supply from these power plants and it is hoped that with the installation of these plants the power crisis would end. KESC is evaluating and collecting data required for the installation of power plants from different parts of city in which Bin Qasim, Malir and Gadap are included.Sources said an agreement would be signed soon to make payment of these power plants. "Since KESC cannot pay the full amount, there are different options under consideration. These options include profit sharing with the concerned firm and purchase of plants on instalments," they added.Sources said a highly questionable performance of Siemens, the Management and Operation partner of KESC, had prompted KESC Corporate Management to explore other options.It may be noted that power requirement of the city is over 2400-MW. At present, KESC has failed to fulfil the demand despite the fact that Wapda and Kanupp are providing to it 750-MW and 75-MW, respectively.There are only two power plants in the city of which Bin Qasim power plant, consisting of six units, is providing about 900-MW to the city while Korangi Thermal power plant, consisting of four units, is supplying only 60-MW which is 190-MW less than its original capacity of 250-MW.Of the four units of power plant in Korangi, two units were declared retired while third is not working due to technical faults and only one unit of 60-MW is supplying power to the metropolis.According to an agreement, installation of two power plants of 488-MW should have been completed in August 2007. Board of Directors of KESC scraped this agreement in December 2006, due to allegations of corruption and bribe.