Home Business & Finance K-Electric signs agreement with Siemens AG and Harbin Electric

K-Electric signs agreement with Siemens AG and Harbin Electric


HARBIN: K-Electric has awarded the contracts to global technology powerhouse Siemens AG and Chinese construction contractor(s) Harbin Electric for a 900MW Combined Cycle Power Plant and associated grids at Bin Qasim.

The contract was signed by Moonis Alvi, CEO, KE; Dr. Keramat Fakhari Executive Vice President, Siemens and Guo Yu, Chairman, Harbin Electric International Company Limited. Although the project timeline has been affected due to delay in finalization of KE’s multi-year tariff, the power utility is determined to execute it on a fast track and additional power to be made available by summer 2021.

With an investment of USD 650 Million, the project will be built at KE’s Bin Qasim Power Complex and includes upgrades to associated transmission infrastructure. It will be dual fired with RLNG (Re-gasified Liquid Natural Gas) as the primary fuel and represents one of the largest private sector investments of its kind in the country’s power sector. In line with our vision of improving KE’s generation fleet efficiency, the 900MW BQPS-III is one of several planned projects to replace older plants with newer and more efficient units.

The project is part of KE’s business plan formulated after detailed study to review all possible solutions for increase in generation capacity including long term off-take of additional power of national grid with the objective of bridging the supply demand gap and decommissioning of its old furnace oil based BQPS-I plan. Accordingly, in addition to this project, KE is also in talks with Government of Pakistan to increase the supply from National Grid and in this regard discussions for supply of 500MW from KANUPP-2 and KANUPP-3 are in advanced stage. It is pertinent to note however, that construction of interconnection facilities will take at least two years once the proposal is approved by GoP, which is still pending. Further a key coal-fired 700 MW Project – awaits notification from the Government of Pakistan. All these planned initiatives are of utmost importance to not only bridge the demand-supply gap in Karachi but to also allow KE to replace older, inefficient furnace oil based units with new lower cost and efficient generation units to lower the burden on consumers and on the national exchequer.

Speaking at the occasion Moonis Alvi, CEO K-Electric said, “The 900 MW BQPS-III is essential in meeting Karachi’s future energy demands. The aim is to commission the project in the fastest possible time, and we are confident that with the right facilitation from all quarters, power from the plant may be added to our supply as soon as summer of 2021. An investment of the size and magnitude of BQPS-III is a testament to KE’s commitment to improving the reliability of power supply for its customers.”

Guo Yu, Chairman, Harbin Electric International Company Limited, “Harbin Electric International Co., Ltd. has accumulated rich project execution experience since it entered the Pakistani power market in 1983, and has completed more than 10 projects in the fields of hydropower, thermal power and combined cycle power stations. We are honored to partner with KE and confident that the under-development power project will play a crucial role in supporting the growing power needs of Karachi and will also help diversify the fuel mix of KE in a sustainable manner.”

“We’re proud to be supporting the energy needs of Karachi with efficient, environmentally friendly technology for power generation, such as the SGT5-4000F gas turbines renowned for high performance and low-cost power generation” said Helmut von Struve, Managing Director and CEO of Siemens in Pakistan. “A reliable, robust and efficient electricity supply is essential to power economic growth and societal development, and our global expertise in delivering such projects makes us an ideal partner to support K-Electric’s long-term vision.”

KE remains firm in its vision to provide safe and reliable power to all its customers underpinned by investments of around USD 3 billion over the span of next four years, across the power value-chain, resulting in energy self-sufficiency and propelling the socio-economic growth of Karachi and Pakistan. News Desk

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