3rd R-LNG-based IPP of 1223MW completed

ISLAMABAD (Staff Report): Pakistan’s third R-LNG based independent power project of 1223MW has been completed and is expected to start its commercial operation in the last week of the current month, which is another milestone achieved by Private Power and Infrastructure Board (PPIB). The project located in Balloki, district Kasur was initiated in 2015 and completed in the short time frame of less than three years, showing close coordination and support among all the stakeholders who made their efforts to materialise this dream well in time. The sponsor of the project, National Power Parks Management Company Limited, Ministry of Energy (Power Division) started the construction activities of this state of the art combined cycle plant in November 2015 at a cost of 798.183 million US dollars. PPIB issued LOI and LOS for development of the project. The power plant has been constructed with General Electric world class multi shaft H Frame Combined Cycle Gas Turbines which ensures highest efficiency of 61.63% and reduces fuel cost and CO2 emission over the life of the plant.

Harbin Electric International was its EPC contractor with other Chinese and local contractors.

After completion of this project, this will be 38th Independent Power Project, processed and developed by PPIB so far with a total power generation capacity of 16,723 MW. As far as R-LNG fuel based power projects concerned, PPIB has processed total of four power projects namely 1230MW at Haveli Bahadar Shah District Jhang, 1180MW at Bhikki district Sheikhupura, 1223MW at Balloki district Kasur and 1263MW at Trimmu Barrage District Jhang. Among four, two projects of 2410MW located at Bhikki and Haveli Bahadar Shah have already been completed and linked to the national grid. Third project at Balloki (Kasur) has also been completed and likely start its commercial operation in the last week of the current month while fourth R-LNG based project of 1263 MW at Trimmu Barrage, Jhang will be completed in December 2018.

PPIB is making all efforts to complete the ongoing private power projects.

3rd R-LNG-based IPP of 1223MW completed

ISLAMABAD (Staff Report): Pakistan’s third R-LNG based independent power project of 1223MW has been completed and is expected to start its commercial operation in the last week of the current month, which is another milestone achieved by Private Power and Infrastructure Board (PPIB). The project located in Balloki, district Kasur was initiated in 2015 and completed in the short time frame of less than three years, showing close coordination and support among all the stakeholders who made their efforts to materialise this dream well in time. The sponsor of the project, National Power Parks Management Company Limited, Ministry of Energy (Power Division) started the construction activities of this state of the art combined cycle plant in November 2015 at a cost of 798.183 million US dollars. PPIB issued LOI and LOS for development of the project. The power plant has been constructed with General Electric world class multi shaft H Frame Combined Cycle Gas Turbines which ensures highest efficiency of 61.63% and reduces fuel cost and CO2 emission over the life of the plant.

Harbin Electric International was its EPC contractor with other Chinese and local contractors.

After completion of this project, this will be 38th Independent Power Project, processed and developed by PPIB so far with a total power generation capacity of 16,723 MW. As far as R-LNG fuel based power projects concerned, PPIB has processed total of four power projects namely 1230MW at Haveli Bahadar Shah District Jhang, 1180MW at Bhikki district Sheikhupura, 1223MW at Balloki district Kasur and 1263MW at Trimmu Barrage District Jhang. Among four, two projects of 2410MW located at Bhikki and Haveli Bahadar Shah have already been completed and linked to the national grid. Third project at Balloki (Kasur) has also been completed and likely start its commercial operation in the last week of the current month while fourth R-LNG based project of 1263 MW at Trimmu Barrage, Jhang will be completed in December 2018.

PPIB is making all efforts to complete the ongoing private power projects.

Fitch downgrades Turkish debt rating to 'BB,' outlook negative

WASHINGTON (AFP): The ratings agency Fitch on Friday downgraded Turkish sovereign debt a notch to 'BB' with a negative outlook, citing inflation and widening current account deficit. The decision followed S&P's move in May to cut the country debt ratings, likewise amid concerns about Ankara's worsening finances and weakening currency. Recent actions by President Recep Tayyip Erdogan that could weaken central bank independence meant stewardship of the economy could suffer, Fitch said in a statement. "In Fitch's opinion, economic policy credibility has deteriorated in recent months and initial policy actions following elections in June have heightened uncertainty," Fitch said in a statement. "This environment will make it hard to engineer a soft landing for the economy." Fitch said trouble was on the horizon for Turkey's economy. Annual inflation hit a 15-year high last month of 15.4 percent, driven by the falling lira, which has lost 27 percent so far this year.

While the central bank has raised interest rates by five percentage points since April, Fitch forecasts inflation will be double that of other countries in the 'BB' category.

The current account deficit is expected to widen to 6.1 percent of GDP this year, but should decline to 4.1 percent next year by the weakening lira, lower oil prices and a growing tourism sector.

And with foreign investment at a low ebb, the government will have to resort to borrowing to finance the budget deficit, which is expected to drive net external debt to 35 percent of GDP by year end.

"Turkey's large gross external financing requirement leaves it vulnerable to shocks," the agency said, estimating external borrowing needs at $299 billion for 2018.

Meanwhile, the central bank's credibility was "damaged" after Erdogan suggested his government could take a greater role in setting monetary policy.

"Subsequent amendments to the central bank's articles of association appear to strengthen the president's influence, notably over key appointments," Fitch said.

Global stocks rise as pound gyrates on Trump Brexit comments

NEW YORK (AFP): US and European stocks rose modestly on Friday with investors mildly hopeful that China and the US can still settle their war over tariffs. On currency markets, the pound slumped after US President Donald Trump attacked UK Prime Minister Theresa May's Brexit strategy but recovered after he seemed to backtrack later in the day. Equities have had a rollercoaster week, with strong US jobs figures providing support before Trump threatened tariffs on another $200 billion of Chinese imports, causing a large sell-off.  The markets have also been buoyed by optimism over second-quarter earnings. Still, analysts are cautious about the odds that the global economy will skirt a value-destroying trade war, with Barclays warning Friday that "the market's benign narrative of this having limited economic consequence could become challenged as trade cost effects cascade through global value chains." Beijing's measured response to Trump's midweek tariffs threat and indications from both sides.

 that they are willing to talk has instilled trading floors with a little optimism heading into the weekend.

"The Chinese government, after initially reacting angrily, appears to be calmly considering its options. The absence of an immediate tit-for-tat response lends hope to the belief that China-US trade negotiations aren't completely off the table," said a note from S&P Global Ratings on Friday.

US Treasury Secretary Steven Mnuchin on Thursday told lawmakers the White House was "available" for discussions with China.

That came after China's Vice Minister of Commerce Wang Shouwen said the economic superpowers "should sit down and try to find a solution to this trade problem."

But in a development on Friday that could unsettle hopes of progress, data showed that China's trade surplus with the United States hit a record last month.

The imbalance is at the heart of Trump's anger at what he describes as Beijing's unfair trade practices that are hurting American companies and destroying jobs.

- 'Dumped and trumped' -

On currency markets Friday, sterling was hammered early in the session by fresh concerns about May's political future.

In an interview released Friday to coincide with Trump's visit to Britain, the president said the British prime minister's plans for close future ties with the EU would "probably kill" her hopes for a trade deal with the United States.

Lukman Otunuga, Research Analyst at FXTM, said the pound had been "dumped and trumped" at the end of what was already "a terrible trading week for the British pound thanks to political instability at home and Brexit-related uncertainty."

Trump later seemed to want to take the edge off his earlier remarks, saying "whatever you do is okay with us, just make sure we can trade together, that's all that matters."

That helped sterling to recover to trade little changed on the day and in turn weighed on London stocks, which are often boosted by a soft British currency.