Country Pakistan Status Under Construction Commission date 2018 (expected) | Location Port Qasim, Sindh Construction began May 2015 Construction cost $2.09 billion USD | |
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The 1,320 megawatt Pakistan Port Qasim Power Project comprises two 660 megawatt supercritical coal power plants which have been under construction since May 2015 as part of the China–Pakistan Economic Corridor. The $2.09 billion project will be located on 204 acres at Port Qasim, 37 kilometers east of Karachi in Sindh Province. The project is to be part of a group of 14 energy projects which fall under the fast-tracked "Early Harvest" program of the $46 billion China Pakistan Economic Corridor project.
Contents
The plants will be built on a "Build-Own-Operate" basis, and is to be constructed and operated by the Port Qasim Energy Holding, a firm jointly financed by Qatar's Al-Mirqab Capital and China's Power Construction Corporation, a subsidiary of Sinohydro Resources Limited.
Project Details
The project will consist not only of the power plants themselves, but also will include the construction of a jetty for exclusive use of the power plant for coal importation. When both 660 MW plants are complete, the estimated annual coal consumption for the plants will be 4.66 million tons, and enough annual power for an estimated 3-4 million households will be generated.
The plants will each consist of one boiler, steam turbine and generator, and will be fueled by sub-bituminous coal which will be offloaded at the project's coal jetty. Electricity will be connected to the electric grid network K-Electric via a 500 kilovolt AC transmission line. The plant's gross efficiency will be equal to or greater than 41%, while the net efficiency will be equal to or greater than 38%.
Additionally, living quarters for up to 700 full-time workers will be constructed at the site, with additional temporary housing facilities for 11,000 construction workers divided into a unit for 2,000 Chinese construction workers, and another unit for 9,000 Pakistani construction workers, with all construction materials for living quarters to be provided by Chinese manufacturers.
Coal Source
Most of the coal used for the power plant will be imported from Indonesia, with South Africa and Australia identified as suitable supplemental suppliers. Indonesia is identified as a primary source for its high quality coal, reliable production, and short transit times to Pakistan.
Coal from Pakistan's own Thar coalfield was found to contain excessive amounts of sulfur and lime, and was not deemed to be of high enough quality for the project. The supply of reliable coal from the fields was also considered to be inadequate. A mixture of Pakistani indigenous coal with imported coal was also deemed to be unsuitable as it would decrease heat production from coal, and would compromise safety of the boilers which are to be used in the project.
Construction and Operation
Construction is expected to take 42 months. The plants will be built on a "Build-Own-Operate" basis, and is to be operated by the Port Qasim Energy Holding, a firm jointly financed by Qatar's Al-Mirqab Capital and China's Power Construction Corporation, a subsidiary of Sinohydro Resources Limited.
Financing
Al-Mirqab Capital will own a 49% stake in the project, and while Power Construction Corporation, which will own a 51% stake in the project. The individual companies will invest $521 million, while the Exim Bank of China will lend those companies the remaining $1.56 billion required for construction.
Tariff
The Government of Pakistan will be contractually obliged to purchase electricity from the plants for thirty years at a cost of 8.12 US cents per unit.