ISLAMABAD - Six companies have submitted their Expressions of Interest (EoIs) against imported coal based IPPs of cumulative capacity of 6600 MW to be set up at Gadani Power Park, in the Balochistan province.

According to a handout, the EoI were received in response to PPIB advertisement to develop a flagship project of the government to produce cheaper electricity. Last date for submission of proposals was October 31, 2014. In response to the advertisement, Six (06) EoIs were received within the EOI submission deadline today. The companies which submitted their EoIs include China Gezhouba Group Company Limited; Genting Energy, Malaysia; China Machinery Engineering Corporation, China; ANC Holding of Dubai, UAE; China Huadian Engineering Company Limited; and Harbin Electric International.

According to officials, an independent consultant will review these proposals according to the predefined criteria, and notification of qualified bidders is expected to be issued within a month.  Federal government intends to establish ten coal-fired power plants, at Gadani around 20 kilometers away from Karachi, through financial and technical assistance from China. Sindh government has expresses serious concerns over the project and said that the construction of these plants will result in pollution and pose serious health risks to over 20 million people living in Karachi. Provincial government has suggested that these projects should be relocated to the Thatta district. It is pertinent to mention that on the request of federal government National Electric Power Regulatory Authority, in May this year approved world’s one of the most lucrative tariff to attract foreign investors mostly from China.

In this rewarding tariff Nepra has offered about 30.65pc rate of return in the upfront tariff for power projects based on Thar coal. The rate of return for projects on imported coal or domestic coal had been offered to the extent of 24.5pc return on equity depending on different project capacities.