KARACHI: Sindh Chief Minister Syed Murad Ali Shah congratulating people of Sindh, said on Wednesday that the Sindh government had launched its first major power project along with its transmission line.

“This is big success and I would say it is the success of people of Sindh,” he said while witnessing the inauguration ceremony of Nooriabad Power Plant, which was performed by Pakistan People’s Party (PPP) Chairman Bilawal Bhutto Zardari here at Nooriabad this evening.

He said that the Sindh government had taken several initiatives to eliminate load shedding in Sindh in particular and Pakistan in general. He added that besides major investment in the development of Thar Coalfield Block II, the provincial government had provided major support to develop 100 MW Gas Fired Power Plant at Nooriabad, on Public-Private-Partnership (PPP) basis.

He went on saying the private sector partner is Technomen Kinetics (Pvt.) Limited, a well known EPC contractor for sizeable industrial projects. It may be noted that Nooriabad is about 85 km from the port city of Karachi and is connected through a major highway.

The chief minister said that 95 km special purpose transmission line had also been funded by Sindh government through Sindh Transmission and Dispatch Company (STDC) Limited at a cost of Rs2 Billion. He added that the initiative was to eliminate load shedding in Karachi for improving the industries, employment and wellbeing of the citizens of Karachi.

Shah said that “The gas is being allocated for 2×50 MW power projects through a decision by the Economic Coordination Committee (ECC) of the Federal Cabinet. He added that the gas quantity is 20 MMSCFD of pipeline quality capable of producing 100 MW. “He added that 50 acres of land has already been acquired by the project companies.”

Talking about ownership structure of the project, the chief minister said that the project had been established through two Special Purpose Companies (SPC) – viz. the Sindh Nooriabad Power Company (Private) Limited (SNPC) and the Sindh Nooriabad Power Company Phase II (Private) Limited (SNPC II).

He added that Sindh government had assumed 49 percent of the equity and the Technomen Kinetics (Private) Limited had subscribed to 51 percent of the equity. Giving detail of financing structure, Murad Ali Shah said that the project is funded through 80 percent debt and 20 percent equity.

He added that the debt is being provided by National Bank of Pakistan, Sindh Bank and Sindh Government Employees Pension Fund. The Project cost is estimated at USD 130 Million. The chief minister said that with the commissioning of 2×50 MW projects, Karachi will be able to reduce load shedding significantly and would provide cheap electricity to the citizens.

He said that it is heartening to note that the company was further allocated with 40 MMCFD of RLNG to establish 225 MW project in Karachi to further reduce the shortfall.