Nandipur Power Project

Nandipur Thermal
Power Project
Country Pakistan
Location Nandipur, Gujranwala, Punjab
Status Operational
Construction began 2008
Commission date March 2015
Construction cost Rs. 38.06 billion[1]
Owner(s) Pakistan Electric Power Company (PEPCO)
Operator(s) Nandipur Thermal Power Generation Company Ltd.
Thermal power station
Primary fuel Natural gas
Cogeneration? Yes
Power generation
Nameplate capacity 425 MW (with potential of 1,000 MW)[2]

Nandipur Power Project is a 425 MW (with potential of 1,000 MW) combined cycle thermal power plant situated at Nandipur near Gujranwala in the Punjab province of Pakistan. Being constructed by the China Dongfang Electric Corporation, the project was completed in March 2015.[3] The estimated cost of the project was Rs. 23 billion ($574 million) when it was announced, which according to the government (PMLN), escalated to Rs. 57.38 billion due to delay and negligence of the previous (Pakistan Peoples Party (PPP) government.[1] However it is claimed by some that the actual cost reached up to Rs. 84 billion.[4]

History

In January 2008, Pakistan Electric Power Company (PEPCO) signed a Rs. 23 billion ($329 million) contract with Dong Fang Electric Corporation of China to construct the Nandipur Power Project and paid it a 10 per cent down payment.[1] By mid-2010, much of the work at this power project was complete and it was expected be finished on schedule in April 2011.[5] However, the project suffered delays as the summary, sent by the Ministry of Water and Power for legal opinion of the Ministry of Law & Justice, remained pending with the latter for two years from March 2010 to March 2012. As a result, machinery worth $85 million remained stuck at the Karachi Port for over two years.[6] In September 2012, the president of Dongfang Electric Corporation, Zhang Guorong, terminated the contract for the construction of the Nandipur power project, saying his company had suffered colossal losses because machinery worth $85 million had been awaiting clearance at the Karachi Port.[7] The company also demanded $40 million as compensation for losses suffered because of depreciation and damages on machinery stranded at the port.[8]

In June 2013, Pakistan's Ministry of Water and Power started renegotiating the contract with Dongfang Electric Corporation to resume work on the Nandipur Power Project.[6] After days of negotiations, the firm agreed to resume work on the power station.[9] On July 8, 2013, engineers of Dongfang Electric Corporation arrived in Karachi to inspect the machinery lying at the Karachi Port and secure its release.[10][11] Later, work on the project was restarted.[12]

Prime Minister Nawaz Sharif inaugurated the first turbine of the project on 31 May 2014.[13] But the plant remained operational for only five days after the inauguration and had to be shut down due to mismanagement and use of inappropriate fuel.[14] Later in July 2015 it was reported that the plant was once again functional and producing the contractual output of 425 MW.[15]

Ownership

Nandipur Power Project is owned by Pakistan Electric Power Company (PEPCO) and operated by the Nandipur Thermal Power Generation Company Limited, which was incorporated on 2 January 2014 with its head Office located in Lahore.

See also

References

  1. 1 2 3 "Govt to launch 4 schemes for coal power". PakTribune. 13 June 2013. Retrieved 11 July 2013.
  2. "Shahbaz stresses to accelerate work on Nandipur power project". The Frontier Post. Retrieved 11 July 2013.
  3. http://www.thenews.com.pk/Todays-News-13-32683-China-to-complete-Nandipur-Power-project-by-end-March-2015
  4. http://www.dailytimes.com.pk/national/11-Feb-2015/malaysian-firm-to-run-425mw-nandipur-power-plant
  5. Sharif, Shahbaz (September 3, 2011). "The scavengers of Pakistan". The Express Tribune. Retrieved 12 July 2013.
  6. 1 2 "Nandipur project: Govt intensifies efforts to resume work on power plant". The Express Tribune. June 27, 2013. Retrieved July 12, 2013.
  7. "China terminates contract of 425MW Nandipur project". The News International. September 8, 2012. Retrieved July 12, 2013.
  8. "Nandipur power project: Chinese firm demands $40m as compensation for delays". The Express Tribune. November 13, 2012. Retrieved July 12, 2013.
  9. "Nandipur power project: Chinese firm agrees to resume work". Business Recorder. July 6, 2013. Retrieved July 12, 2013.
  10. "Chinese arrive to resume Nandipur project". Dawn. 9 July 2013. Retrieved 12 July 2013.
  11. "Chinese engineers accelerate work on Nandipur Power Project". The Lahore Times. July 9, 2013. Retrieved July 12, 2013.
  12. Jamil, Farah (11 July 2013). "Nandipur project to help reduce loadshedding, says MPA". AAJ TV. Retrieved 12 July 2013.
  13. http://tribune.com.pk/story/715730/pm-inaugurates-1st-turbine-of-nandipur-power-project/
  14. http://www.dawn.com/news/1121195
  15. http://dunyanews.tv/index.php/en/Pakistan/288042-Nandipur-Power-Plant-fully-functional-generating-

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