KARACHI, Nov 7: The Karachi Electric Supply Company (KESC) on Wednesday announced plan to invest Rs40 billion ($400 million) during next two to three years in enhancing its generation capacity, improving generation fleet efficiency to meet growing power demand across its service territory.

A spokesman from the power utility said on Wednesday that KESC would arrange these funds from local and foreign institutions in the shape of both debt and equity.

The KESC has already invested around $1 billion over the last four years in various large scale projects in generation, transmission and distribution. The new Rs40bn investment plan, he said, is aimed at enhancing KESC’s power generation capacity.

These funds will also be utilised in reducing power generation cost and building requisite transmission capacity to meet ever-rising demand of electricity in Karachi, he added.

Under the new investment plan, KESC is undertaking combined cycle projects at its three power plants in Korangi and SITE area where it would enhance efficiency of the plants and add additional 47MW of generation capacity.

A specially-designed ‘transmission package’ will see installation of new transformer bays, in addition of three new grid stations at strategic locations and extension of six existing grid stations.

The spokesman further said that in line with strategic intent to bring down the cost of generation, the new investment plan would allow KESC to convert two of its oil-fired units of 210MW each at its Bin Qasim-I to coal.

In addition, KESC pledges to develop a bio-waste energy project which would convert cattle manure from Landhi Cattle Colony and organic food waste to produce 22MW of electricity.