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1263 MW PTPL project achieves financial close

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Apr 23, 2021: 1,263 MW Punjab Thermal Power Private Limited (PTPL) Project being set up in Jhang on Friday achieved financial close.

Financial Closing documents were signed by Managing Director Private Power Infrastructure Board (PPIB) Shah Jahan Mirza and Chief Executive Officer of PTPL Akhtar Hussain Mayo.

The financial closing ceremony was graced by Minister for Energy, Hammad Azhar and Punjab Energy Minister, Dr. Akhtar Malik.

Chairman PPIB/Secretary Power Division, Ali Raza Bhutta, and other senior officials of Power Division, PPIB, and the project company also witnessed the proceedings.

The Power Plant located near Trimmu Barrage, District Jhang is based on re-gasified liquefied natural gas (RLNG) and is so far the largest RLNG based power generation project under Power Generation Policy 2015.

The project is being developed in IPP mode through Punjab Thermal Power (Pvt.) Ltd. (PTPL), a private limited company owned by the Government of Punjab through the Energy Department.

This is the second RLNG based power project developed by the Government of Punjab through its own resources, the first being the Bhikki Power Plant, which has already entered full-fledged combined cycle commercial operations and has generated over 9.3 billion units during last year.

PTPL project is being financed through 75 percent commercial debt arranged from local banks which include National Bank of Pakistan, Bank of Punjab, United Bank Limited, and Habib Bank Limited while the total cost involved in the development of this project is $708 million.

Utilizing state-of-the-art technology, the plant has a design efficiency of 61.16% which is rated amongst the highest efficiencies in the world, which would result in fuel-saving of billions of rupees to the national exchequer during 30 years project life period while reducing overall tariff.

Despite the delay in Financial Closing and commissioning of the project due to COVID-19 implications, the project company adopted a proactive approach and started construction of the plant by injecting its own equity.

Due to dedicated efforts of the Punjab Government coupled with the continued support of the Federal Government, Power Division, and Private Power & Infrastructure Board (PPIB) the plant has reached an advanced stage with over 80% of construction works completed.

Efforts are being made to bring this project of national importance online by October 2021 on open cycle mode and on combined cycle mode by June 2022.

Upon commissioning of the Project, it will also help in stabilizing and balancing the transmission system to improve uninterrupted supply to Faisalabad and adjacent areas.

The Project will generate more than 3000 employment opportunities during the construction phase while 2000 during its operations.

Speaking on the occasion, Minister for Energy Hammad Azhar remarked that our energy issues are complex and multifaceted.

This project will add to the low-cost electricity in the country, he said.

He said it will benefit people at large. He said that the 1200 MW RNLG plants near Trimu will also improve voltage and electricity flow in the Faisalabad and the surrounding region.

Speaking on the occasion, Punjab Energy Minister Akhtar Malik said the private sector is investing Rs 115 billion in the project. No government guarantee is involved in this project, he said.

APP

Posted on: 2021-04-23T16:19:00+05:00

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