Friday, December 8 2023 Sign In   |    Register

News Quick Search



Front Page
Power News
Today's News
Yesterday's News
Week of Dec 04
Week of Nov 27
Week of Nov 20
Week of Nov 13
Week of Nov 06
By Topic
By News Partner
Gas News
News Customization


Pro Plus(+)

Add on products to your professional subscription.
  • Energy Archive News

    Home > News > Power News > News Article

    Share by Email E-mail Printer Friendly Print

    Reviving Projects

    September 13, 2023 - Nation


      The news of AsiaPak Investments injecting $545 million into the Jamshoro Coal Power Plant is a promising development for Karachi and the broader energy landscape of Pakistan. This project, already 96 percent complete, has faced numerous hurdles, and it's heartening to see external investment step in to bridge the final four percent gap. While it's lamentable that domestic sources didn't fully back this crucial venture, the arrival of foreign direct investment (FDI) is a significant stride towards making the power plant fully operational.

      The financial impediments that had plagued the project for years, including a local bank's refusal to provide financing, had not only stalled progress but also incurred commitment charges to a foreign lender. These setbacks were mainly due to delays in determining the generation tariff and arranging equity funds. It is commendable that the government has now released Rs 9 billion as equity financing, clearing the path for the project's revival.

      The key question now is how this endeavour will translate into tangible benefits for the people of Karachi. A steady supply of electricity can alleviate the burden of high tariffs to some extent, but the focus must extend beyond mere generation. Efficient distribution of this additional electricity should be a pivotal part of the project. This necessitates a comprehensive blueprint devised by the relevant authorities to ensure that the benefits of this investment reach every corner of Karachi.

      At a recent public hearing, the Jamshoro Power Company Limited (JPCL) sought a tariff of Rs 32 per unit for the coal-based plant. While this request reflects the need to recover costs, it is vital to strike a balance that safeguards the interests of consumers. The markup on commercial financing should not burden consumers with exorbitant tariffs. It's imperative for the National Electric Power Regulatory Authority (Nepra) to work collaboratively to correct the tariff structure for coal-based power plants, ensuring affordability for all.

      Furthermore, the project's objective of improving power generation capacity through efficient and environmentally friendly technology is commendable. Reducing the cost of power supply and curbing the menace of circular debt will undoubtedly benefit the nation. Still, equal emphasis should be placed on bolstering the transmission and distribution networks to meet the burgeoning energy demands of various sectors, contributing to overall economic development.


    Other Articles - International


       Home  -  Feedback  -  Contact Us  -  Safe Sender  -  About Energy Central   
    Copyright © 1996-2023 by CyberTech, Inc. All rights reserved.
    Energy Central® and Energy Central Professional® are registered trademarks of CyberTech, Incorporated. Data and information is provided for informational purposes only, and is not intended for trading purposes. CyberTech does not warrant that the information or services of Energy Central will meet any specific requirements; nor will it be error free or uninterrupted; nor shall CyberTech be liable for any indirect, incidental or consequential damages (including lost data, information or profits) sustained or incurred in connection with the use of, operation of, or inability to use Energy Central. Other terms of use may apply. Membership information is confidential and subject to our privacy agreement.