Country to save over Rs 10bn: KARKEY

ISLAMABAD: The Turkey-based company, KARKEY, has said Pakistan would save over Rs 10 billion during the five-year contract period due to savings in power transmission and fuel transportation through the “Power Ship” docked at Karachi.The details of the “Mounted Power Project” prepared by Turkish investor further disclosed that the cost of electricity would be Rs 10 per Kwh through the Power Ship project. Breakup of financial savings disclosed that transmission savings over rental-period come to over Rs 6.61 billion whereas fuel transportation savings over rental-period (5 years) stand at over Rs 5 billion.The National Transmission Dispatch Company (NTDC) losses range between 6-8 percent depending on voltage level, transmission distance and transformation mechanisms.

“Through the Power Ship, transmission of electricity would save this loss and impact of transmission savings will be Rs 6.61 billion over the five-year contract period.”As per the working of KARKEY, assuming that power is to be generated in Multan (945 km from Karachi); Pakistan Electric Power Company (PEPCO) spends additional costs in transporting the fuel from Karachi to Multan.Considering a transportation cost of Rs 2-5 /ton /km and other potential losses in transport, there will be financial savings of Rs 5.6 billion under the head of fuel transportation. In the absence of supply of electricity from where it is consumed as the Power Ship would do, PEPCO will have to deprive other parts of the country of electricity and send power from its generation in the upcountry location.

The Power Ship is directly connected to the Karachi grid, which will ensure a 93 percent guaranteed physical supply of electricity. Having a 230-megawatt (MW) power project, right next to KESC grid, provides significant “Electrical System Stability” to help reduce power failures.The ship-mounted project is the largest investment by a Turkish company in Pakistan. Keeping in view the global economic recession and specific conditions of Pakistan, it is not easy to bring investors in Pakistan. In a recent International Competitive Bidding (ICB) carried out by PPIB for a 300-MW IPP, 8 parties purchased the bidding documents, however, one bid was received, which was submitted by KARKEY. The Power Ship project is entirely financed by international banks – Dailytimes