Jamshoro power station

From Global Energy Monitor
This article is part of the CoalSwarm coverage of Pakistan and coal.
Sub-articles:
Related articles:

Jamshoro power station is a power plant fueled by natural gas and fuel oil located in Sindh province, Pakistan. It consists of one 250 MW unit (fuel oil) and three 200 MW units (fuel oil and natural gas).

Two additional 660-MW coal-fired units are currently under development.

Location

The map below shows the existing units of the plant, in Jamshoro district, Sindh province.

Loading map...

Background

Jamshoro Power Station is a thermal power plant fueled by natural gas and fuel oil located near Sindh. It is operated by the Jamshoro Power Company (GENCO-I). It consists of one 250 MW unit (fuel oil) and three 200 MW units (fuel oil and natural gas). [1]

Unit 5 & 6 expansion

In February 2014, the Asian Development Bank agreed to loan $900 million to the government of Pakistan for a project to install a 600MW supercritical coal-fired power plant at Jamshoro.[2] In addition to the $900 million ADB loan, Pakistan had also secured $220 million from the Islamic Development Bank.[3]

The 600MW supercritical coal-fired power generation plant, using an 80/20 blend of imported sub-bituminous coal and domestic lignite when available, will be in accordance with international and national environmental standards. [4][5]

By 2015, the project had changed to construction of a new 660-MW coal-fired unit and switching of an existing fuel oil-based 660MW power plant to supercritical coal technology,[3] at a total cost of $1.7 billion. In June 2015, officials of the Asia Development Bank told the Cabinet Committee on Energy that completion of the two units of the plant by 2018 and 2019 would not be possible because of the ADB's lengthy financing process.[6]

As of February 2016, construction was still not scheduled to begin until Q1 2017 at the earliest. ADB officials complained that regulators had been slow in processing applications for bids, and that financing for a rail link had yet to be secured.[7] In May 2016, the Ministry of Water and Power invited bids on a engineering, procurement, & construction (EPC) contract for the project.[8][9]

As of January 2017, proposals from construction contractors were under review, with that review expected to be concluded in Q2 or Q3 2017.[10] In April 2017, Jamshoro Power signed a memorandum of understanding with Sindh Engro Coal Mining Company for supply of lignite coal from the Thar Block II coalfield (where the Hubco Thar Block II minemouth power station would be located) to the future Jamshoro coal plant.[11]

In September 2017 it was reported that less than $10 million or just 1.1% has so far has been disbursed by ADB. There are also issues with the construction of coal receiving and transporting infrastructure for the power station, because both the parties are still in the process of finalising those arrangements.[3]

In March 2018 the engineering, procurement and construction (EPC) contract for the first unit of 660MW was awarded to a joint venture of Siemens and Chinese Harbin Electric International (HEI). The EPC for unit 2 will be signed once the financing arrangement is finalized. Unit 1 is planned for 2022.[12] The EPC cost was 40% less per megawatt than coal plants negotiated as part of the China-Pakistan Economic Corridor coal projects, leading to public pressure to review the PPAs in the CPEC.[13]

In May 2019, the Islamic Development Bank assured the Pakistani government of its ongoing support for the project.[14]

Construction work began on unit 5 in 2019.[15] Commissioning is planned for 2023.[16]

In July 2020, the Sindh energy department recommended the federal power ministry to design and run unit 6 on only indigenous Thar Coal.[17]

The Pakistan government is debating whether to shelve unit 6 of Jamshoro due to slow progress.[18]

Financing

In March 2014, financial closure was achieved for unit 5 after US$1,120 million in loans were secured from the Islamic Development Bank (US$220 million) and Asian Development Bank (US$900 million).[3] US$380 million in equity is being provided by the Government of Pakistan.[19]

In November 2019, it was reported that financial close for unit 6, amounting to US$303 million, had been achieved. Islamic Development Bank will contribute US$100 million, Saudi Fund for Development US$91 million, Kuwait Fund for International Development US$40 million, and the OPEC Fund for International Development US$72 million.[20]

Involuntary resettlement

According to the Project Detail sheet, the project will involve involuntary settlement, described as follows:[5]

"Approximately 100 acres of land belonging to 18 landowners (with a total of 106 family members) is required for an ash pond at Jamshoro TPS. Consultations were held with the owners and they are willing to negotiate with JPCL on the price. A land acquisition and resettlement plan was prepared and disclosed on ADB?s website on 19 September 2013; it will be updated to reflect the final list of owners and price agreed between the owners and JPCL.")

Asia Development Bank

In February 2014, the Asian Development Bank agreed to loan $900 million to the government of Pakistan for a project to install a 600MW supercritical coal-fired power plant at Jamshoro.[21][22] In addition to the $900 million ADB loan, Pakistan had also secured $220 million from the Islamic Development Bank.[3]

Slow progress reported by Asian Development Bank

Two years after arranging loans from international lending agencies, the project still could not begin construction, according to a report by the Asian Development Bank (ADB). The report stated: "As of January 2016, no construction, rehabilitation or remediation activities had commenced on the site and none is envisaged to commence until the first quarter of 2017."[22]

Among the issues identified by the ADB report was that the Ministry of Water and Power had wasted significant time in finishing the bid documents. In addition, the coal receiving facility at Port Qasim had not secured financing and there was no allocation in the Public Sector Development Programme's current budget for the facility.[22]

Criticism of ADB's role

In May 2017, attendees at ADB's Annual Meeting in Yokohama criticized the Bank's funding of coal power projects, specifically singling out the Jamshoro project for criticism.[23] In October 2018, in response to criticism, Yongping Zhai, the director of the Asian Development Bank's Energy Division, named the Jamshoro plant as the last coal-fired power project that ADB had committed to funding (in 2013): "The last such instance was five years ago in Pakistan, where we supported the Jamshoro supercritical coal-fired power plant, which prior to our investment was running on highly-polluting heavy fuel oil."[24]

Project details

  • Sponsor: Jamshoro Power Company (JPCL)
  • Parent company: Government of Pakistan
  • Location: Jamshoro, Sindh province, Pakistan
  • Coordinates: 25.472222, 68.266111 (exact)
  • Status: Construction (Unit 5), Permitted (Unit 6)
  • Gross generating capacity (operating): 600 MW
    • Unit 2-1: Fuel oil- and gas-fired[25] steam turbine[1], 200 MW[1] (start-up in 1989)[25]
    • Unit 2-2: Fuel oil- and gas-fired[25] steam turbine[1], 200 MW[1] (start-up in 1990)[25]
    • Unit 2-3: Fuel oil- and gas-fired[25] steam turbine[1], 200 MW[1] (start-up in 1991)[25]
  • Gross generating capacity (construction): 660 MW
    • Unit 5: 660 MW
  • Gross generating capacity (proposed): 660 MW
    • Unit 6: 660 MW
  • Type: Supercritical
  • Projected in service: 2023 (Unit 5)
  • Coal Type/Source: 80% imported subbituminous; 20% domestic lignite
  • Source of financing:
    • Unit 5: US$1,120 million in debt from Asian Development Bank (US$900 million), Islamic Development Bank (US$220 million);[3] US$380 million in equity from the Government of Pakistan[19]
    • Unit 6: US$303 million in debt from Islamic Development Bank (US$100 million), Saudi Fund for Development (US$91 million), Kuwait Fund for International Development (US$40 million), the OPEC Fund for International Development (US$72 million)[20]

Articles and resources

References

  1. 1.0 1.1 1.2 1.3 1.4 1.5 1.6 State of Industry Report 2020, Pakistan National Electric Power Regulatory Authority (NEPRA)
  2. "ADB Provides $900 Million for Jamshoro Power Project". News and Events. Asian Development Bank. 12 February 2014. Retrieved 19 March 2014.
  3. 3.0 3.1 3.2 3.3 3.4 3.5 "$900m ADB loan stuck in red tape," The Express Tribune, Sep 19, 2017
  4. "IDB approves 220m for Jamshoro Power Project" Dawn.com, March 30, 2014
  5. 5.0 5.1 "47094-001: Jamshoro Power Generation Project - Project Data Sheet (PDS): Details," Asian Development Bank, accessed March 2015
  6. Zafar Bhutta, "Coal Based Energy Delay in Financing Slows Down Jamshoro Power Project," Express Tribune, 22 July 2015
  7. Jamshoro coal power plant: Work yet to begin as project delay enters third year, Express Tribune, 16 Feb. 2016.
  8. Govt to invite bids for $1.7b Jamshoro coal plants, Express Tribune, 7 May 2016.
  9. Invitation for Technical Proposals: Jamshoro Power Generation Project, Asian Development Bank, 6 May 2016.
  10. Environmental Monitoring Report: PAK: Jamshoro Power Generation Project, Asian Development Bank, January 2017.
  11. Jamshoro Power inks pact with SECMC for lignite purchase, Dawn, 2 Apr. 2017.
  12. "Jamshoro to have Pakistan's first 'supercritical coal-fired plant'," The Tribune, March 30, 2018
  13. "Cost of CPEC coal power projects per MW 40pc higher," The News, May 9, 2018
  14. IsDB expresses readiness to finance Jamshoro Coal Fired Power Plant, Radio Pakistan, 2 May 2019.
  15. "PAK: Jamshoro Power Generation Project," ADB Environmental Monitoring Report, July 2019
  16. "ARAKO has delivered its special product to Japan and Pakistan". Arako website. 2020-09-30. Retrieved 2020-11-19.
  17. Shafa, Muhammad (2020-07-17). "Power ministry urged to run JPCL plant-II on Thar Coal". Brecorder. Retrieved 2020-11-19.
  18. "Pakistan asked to abandon coal". Energy Central. 2020-11-11. Retrieved 2020-11-19.
  19. 19.0 19.1 "Preview of Jamshoro Supercritical Coal-Fired Power Plant Expansion (Lot-I) (600MW) | Transaction | IJGlobal". ijglobal.com. Retrieved 2020-09-21.
  20. 20.0 20.1 "New Jamshoro power plant reaches $303mln financial close," The News, Nov 22, 2019
  21. "ADB Provides $900 Million for Jamshoro Power Project". News and Events. Asian Development Bank. 12 February 2014. Retrieved 19 March 2014.
  22. 22.0 22.1 22.2 "Jamshoro Coal Plant in Limbo," Energy Central, May 5, 2016
  23. Asian Development Bank Grilled by NGOs for Coal Investments, Climate Tracker, 9 June 2017.
  24. Yongping Zhai, No place for “dirty energy” in ADB’s climate vision, Asian Development Bank press release, 23 Oct. 2018.
  25. 25.0 25.1 25.2 25.3 25.4 25.5 TPS Jamshoro, Jamshoro Power Company Limited (GENCO-I), accessed Mar 3, 2021

Related GEM.wiki articles

External resources

Wikipedia also has an article on Jamshoro power station. This article may use content from the Wikipedia article under the terms of the GFDL.

External resources