LAHORE: The Punjab government on Friday signed an agreement with the China Machinery Engineering Corporation (CMEC) for the Engineering, Procurement and Construction (EPC) of the 1,263MW Re-gasified Liquefied Natural Gas (RLNG) power plant near Trimmu Headworks in Jhang.

The contract was awarded to the CMEC which, along with known firm Siemens, was declared successful bidder among the seven companies that participated in the bidding process. “It is really a great occasion as the world is witnessing how the PML-N leadership in Pakistan is working overtime to resolve the massive loadshedding issue that badly hit progress for the last 15 years,” said Chief Minister Shahbaz Sharif.

“Through our untiring efforts,” he said, “loadshedding has now become a thing of the past. And on this occasion, I have no doubt that there will be no loadshedding by the end of this year or early next year, he claimed.

Under the agreement, the CMEC will be responsible for completing first phase (operation of simple cycle) of the project by December next year (14.5 months) whereas the plant’s combined cycle operation will complete in November 2019.

Siemens, according to a document, will be responsible for long-term service/maintenance being the Original Equipment Manufacturer (OEM). “The CMEC and Siemens are renowned companies implementing this mega power project. Before this, General Electric worked in three RLNG-based projects -- Bhikki, Havaili Bahadur Shah and Balloki. Both Siemens and GE are known to introduce new technologies,” the CM maintained.

While comparing US $794 million Trimmu power project with the three power plants, the government claims to have saved Rs48.69 billion in the EPC cost besides reducing the Long Term Service Agreement cost from US $179.7 million to $156.8 million.

“The government has already saved Rs38.50 billion, Rs40.52 billion and Rs39.51 billion in the EPC cost of the Havaili Bahadur Shah (Jhang), Balloki (Kasur) and Bhikki (Sheikhupura) RLNG plants. And now again through massive efforts we have saved Rs48.69 billion in the EPC cost of this plant,” Punjab Thermal Power (Private) Limited Chief Executive Officer Ahad Khan Cheema said while giving a presentation on the project.

The company also brought LTSA cost from USD 179.8 million to USD 156.8 million after deliberations with Siemens, he added. “This company being the OEM will be responsible of providing major equipment for the project,” he said.

Mr Cheema said the project’s total cost $794 million meant $520 million as EPC cost and $274 million as non EPC cost.

CMEC Vice President Mr Fang Yanshui said his company was the first Chinese firm working in Pakistan’s power sector for long. “Today we have gathered here to celebrate the contract signing of 1,263MW power plant. And on behalf of my company, I congratulate the Punjab government for launching this project,” he added.

Siemens Senior Vice President Mr Jean Claude Nasr said his company feels pleasure to introduce gas turbines of high-efficient technology. “The turbines we are going to supply to this project are of high-efficient technology that is fit for the commercial operation,” he claimed.

Published in Dawn, September 30th, 2017