China goes slow on Pak power plant

A Chinese firm has delayed the commencement of operation and maintenance of a power plant in Pakistan due to differences with a state-run power generation company.

In February last year, the Northern Power Generation Company Limited (NPGCL) had signed a 10-year contract with China's Hydro Electric Power System Engineering Company (HEPSEC) for operation and maintenance (O&M) of the Nandipur project, reported Dawn.

According to the letters exchanged, both sides expressed concern over various issues before the commencement of the O&M services of the power plant.

Zafar Abbas, the senior official of the energy ministry (power division), however, rejected the delay and said: "They (the Chinese company) have been mobilised to the site for O&M services."

The letter also mentioned that some matters were pending from both the sides such as - provision of registration by the Pakistan Engineering Council (PEC), operator's insurance policy, performance test procedure, computerised maintenance management system, approvals from local authorities, initial performance tests, updated list of spare parts, owner's insurance, internal security, initial spare parts and consumables, accommodation and offices and supervisory engineers.

"It is further intimated that the current status of completion of the mobilisation services reveals further delays; hence this office has no option left other than invoking the mobilisation LDs as stipulated in the contract. Nevertheless, the mobilisation advance payment guarantee, expiring on October 21, necessitates further extension due to the aforementioned discrepancies," the letter read.

Meanwhile, HEPSEC has submitted the provisional registration certificate and operator's insurance for the power plant. For the O&M contract, the operator will be apprised accordingly as soon as they earn the commencement.

However, Gencos Holding Company Limited Chief Executive Officer Muhammad Imran claimed most of the differences had been sorted, regarding the commencement of the O&M services of the Nandipur project.

"We have fixed January 6 as a provisional date for getting the O&M services initiated by the Chinese firm," said Imran.

He also acknowledged the delay of the completion of the process to convert the plant to gas was also one of the reasons.

"Since the conversion work is over, the Chinese firm would soon be able to carry out tests related to O&M at the gas-fired plant," Imran added.