Pakistan : Jamshoro Power Generation Project
The project's impact will be an enhanced energy supply in Pakistan. The outcome will be a more efficient energy mix through diversification from expensive HFO to less expensive coal. ????The project will (i) increase the capacity of the Jamshoro TPS by installing a 600-MW (net) supercritical coal-fired unit, using an 80/20 blend of imported sub-bituminous coal and domestic lignite when available; (ii) provide 5 years of operation and maintenance (O&M) support; (iii) improve compliance with international and national environmental standards by installing emission control devices for the existing units and remediating the site; (iv) enhance the capacity of GENCO Holding Company Limited (GHCL) and Jamshoro Power Company Limited (JPCL) by providing financial, technical, and operational training; and (v) promote education on coal-fired plant operation by providing on-the-job training, and integrating such training into technical school curriculum.
Project Details
-
Project Officer
Khattak, Ehtesham Zafar
Central and West Asia Department
Request for information -
Country/Economy
Pakistan -
Modality
-
Sector
- Energy
Related Projects
| Project Name | Jamshoro Power Generation Project | ||||||||||||
| Project Number | 47094-001 | ||||||||||||
| Country / Economy | Pakistan |
||||||||||||
| Project Status | Active | ||||||||||||
| Project Type / Modality of Assistance | Loan |
||||||||||||
| Source of Funding / Amount |
|
||||||||||||
| Strategic Agendas | Inclusive economic growth |
||||||||||||
| Drivers of Change | Governance and capacity development Partnerships |
||||||||||||
| Sector / Subsector | Energy / Conventional energy generation |
||||||||||||
| Gender | No gender elements | ||||||||||||
| Description | The project's impact will be an enhanced energy supply in Pakistan. The outcome will be a more efficient energy mix through diversification from expensive HFO to less expensive coal. ????The project will (i) increase the capacity of the Jamshoro TPS by installing a 600-MW (net) supercritical coal-fired unit, using an 80/20 blend of imported sub-bituminous coal and domestic lignite when available; (ii) provide 5 years of operation and maintenance (O&M) support; (iii) improve compliance with international and national environmental standards by installing emission control devices for the existing units and remediating the site; (iv) enhance the capacity of GENCO Holding Company Limited (GHCL) and Jamshoro Power Company Limited (JPCL) by providing financial, technical, and operational training; and (v) promote education on coal-fired plant operation by providing on-the-job training, and integrating such training into technical school curriculum. The infrastructure developed will also support government's plan to have an additional 600-MW unit at the same site. | ||||||||||||
| Project Rationale and Linkage to Country/Regional Strategy | Pakistan is exploring options to reduce load shedding and power cost but has few medium-term options for affordable, dependable power supply. Natural gas was the main fuel used for Pakistan's base-load power plants, but the country's dwindling reserves of gas have resulted in increasing use of high-cost imported fuel oil for power generation. This has increased power generation costs and exacerbated the existing financial shortfall, both within the sector and the national economy. Compared to existing, inefficient HFO-fired plants, the higher efficiency supercritical generation units and diversification away from imported fuel oil will enable Pakistan to increase its reliable supply of electricity and lower both costs and greenhouse gas (GHG) emissions. ????Energy crisis. Pakistan's energy crisis depresses its economic performance and fuels social instability. Power shortages equaled about one-third of total demand (4,000 to 5,000 MW) during most of FY2012 (ending July 2012). Increasing, unpredictable load shedding is estimated to constrain annual gross domestic product (GDP) growth by at least 2%. Small- and medium-sized enterprises that employ the largest number of people, but cannot afford back-up electricity generators and fuel, experience the largest impact. GDP growth has averaged 3% since 2007, while GDP growth of 7% is required to generate enough employment to absorb new labor market entrants. Low economic growth creates an environment for recruitment by societys radical elements. The government introduced, as a priority, the new National Energy (Power) Policy (Power Policy) to tackle these issues. As a first step, PRs480 billion was paid to fuel companies and independent power producers to clear payment arrears. The government is also pursuing tariff rationalization and energy efficiency measures such as conservation, transmission and distribution loss reduction, and rehabilitation of existing power plants.????High-power generation cost. Pakistan has 23,538 MW of installed power generation capacity and 14,000 MW of available capacity on average. Many HFO-fired power plants are not fully utilized because of a shortage of funds for fuel. The increase in HFO-fired power generation is the major reason the cost-recovery tariff (average tariff) has continuously increased. The government has increased the base tariff by 106% from February 2008 to June 2013, while the subsidy has increased to PRs5.79 per kilowatt-hour (kWh). For fiscal and economic sustainability, the government must lower electricity generation costs and increase supply to reduce shortages. ????Lowering the generation cost. The government aims to increase coal-based power generation while decreasing expensive HFO generation. This will require converting existing HFO generation units, replacing old inefficient units, and constructing new plants. The imported HFO costs several times more than domestic or imported coal, and has higher sulfur content. Electricity generated from coal, through medium-term fuel supply contracts, will also help stabilize the power price. The Power Policy includes plans to diversify the energy mix, and the National Electric Power Regulatory Authority (NEPRA) recently announced a new upfront tariff calculation methodology to encourage investment in coal-fired power projects. ????Renewable and gas-based generation. To improve energy security and affordability, the government will also pursue large hydropower, gas, and other projects using domestic resources. Pakistan has a low carbon footprint because of the large amount of hydropower and natural gas-based power generation. However, hydropower's contribution to total generation has declined, and accounted for just 26% of power generated in 2012. Only 6,716 MW of a potential of over 40,000 MW of hydropower has been tapped, making hydropower from large dams the ideal solution. However, the long implementation and complex safeguard issues mean this is a long-term option. Domestic gas-fired generation will decline from the current 26% because of depletion of existing fields, and competing demand from industry, transport, and retail customers unless domestic gas supplies are increased. Wind and solar corridors are being explored, but their outputs are variable and would not meet the base-load requirements. ????Power generation mix. Oil-fired power generation is expensive, and is used for less than 5% of world generation. To be competitive economically, Pakistan cannot afford a continued reliance on expensive imported oil for 34% of power generation. Pakistan has one of the lowest carbon emissions, just 19% of the world's average. Potential coal reserves in Pakistan may generate 100,000 MW of power for 350 years. Globally, coal-based power plants generate 40% of power, but account for just 0.07% of generation in Pakistan. Poverty reduction and provision of basic necessities to the poor are immediate challenges for Pakistan.????ADB interventions. ADB is engaged in the Pakistan energy sector through its multitranche financing facilities, which fund energy efficiency, transmission, distribution, and renewable energy projects. As the sectors largest donor, ADB conducts policy dialogue on reforms, planning and implementation, and provides periodic sector assessments to country reviews of the International Monetary Fund. Ongoing reforms follow the recommendations in the report of the Friends of Democratic Pakistan Energy Task Force, which ADB co-chaired with the government. The report addresses diversification of existing fuel sources. The project is included in the country operation business plan for Pakistan. | ||||||||||||
| Impact | Enhanced energy supply?? | ||||||||||||
| Project Outcome | |
|---|---|
| Description of Outcome | More efficient energy mix (through diversification from expensive HFO)?? |
| Progress Toward Outcome | For site remediation, contracts for Lot I Renovation of Effluent Evaporation Ponds, Lot II-Construction of Channel for disposal of Cooling Tower Blow Down and Lot III-Construction of Municipal Solid Waste Disposal Facility were awarded in Q4 2016. Contract for Lot IV-Construction of Hazardous Solid Waste Disposal Facility was awarded in March 2018, while that of Lot V-Construction of Sewage Treatment Plant and Site Remediation was awarded in Sep 2018. Works under Lots I and II are already completed while those of Lot III and IV are at about 84% and 92% completion rates. Lot V works are at 60% progress.????For the installation of supercritical coal-fired power plant, contract for EPC-O&M for Unit 1 was awarded in March 2018. For coal supply, master coal purchase agreement was finalized and signed with qualified bidders in May 2018 and still valid 5 years from commercial operations date. ????With substantial savings from EPC-O&M for Supercritical Power Plant (Unit 1) contract, $150 million was partially cancelled from Loan 3090 in October 2018. In March 2020, $26.7 million was partially cancelled from Loan 3091 and reallocated to the Emergency Assistance Loan of $300 million to Pakistan to address the COVID-19 pandemic in the country. $32 million under Loan 3090 was cancelled in May 2020 as the Government decided to defer the plan to install the emission control system in the existing oil-based plant which are inefficient and not anymore operational. However, there are adequate funds in the contingency that could be reallocated if required. As of 30 September 2020, the total Project's contract awards amount to $554.96 million and total disbursements amount to $188.27 million or 81% and 27% of total ADB financing, respectively.?? |
| Implementation Progress | |
| Description of Project Outputs | Jamshoro TPS capacity increased??National environmental standards compliance ensured??Executing agency and implementation agency staff capacity enhanced??Coal-fired power plant operation introduced in technical school curriculum?? |
| Status of Implementation Progress (Outputs, Activities, and Issues) | Preparation of training manuals will be done by the capacity development consultant to be engaged by mid 2021. ????Recruitment was initiated in Sep 2017, but was withheld while various approaches are being considered. A new advertisement for consultant recruitment is issued in mid-Oct 2019. EOIs have been received and evaluated. TOR and budget will be reviewed and revised.??Preparation of training manuals will be done by the capacity development consultant to be engaged. ????Recruitment was initiated in Sep 2017, but was withheld while various approaches are being considered. A new advertisement for consultant recruitment is issued in mid-Oct 2019.EOIs have been received and evaluated. TOR and budget will be reviewed and revised.??Once the coal-fired plant is in operation, JPCL considers to decommission the thermal units. Thus, the need for FGD emission control devices is yet to be reconfirmed.??Appropriate curriculum design is yet to be identified by the Capacity Development Consultant, recruitment for such is ongoing.??A master coal purchase agreement has been finalized and signed with qualified bidders. Contract for EPC-O&M Supercritical Coal Power Plant Unit 1 was awarded in March 2018. Commissioning scheduled in Dec 2021.??Bidding for the site remediation civil works commenced in February 2016. Contracts for Lot I Renovation of Effluent Evaporation Ponds, Lot II-Construction of Channel for disposal of Cooling Tower Blow Down and Lot III-Construction of Municipal Solid Waste Disposal Facility were awarded in Q4 2016. Procurements of Lot IV-Construction of Hazardous Solid Waste Disposal Facility and Lot V-Construction of Sewage Treatment Plant contracts are retendered with contract for Lot IV awarded in March 2018 and that of Lot V in Sep 2018. Lots I and II are already completed while those of Lot III and IV are at 84% and 92% completion rate, respectively. Lot V works are at 60% progress.??Procurement for soil remediation work contract has failed. JPCL has considered to include the same in the EPC contract. MOU was signed on 14 Feb 2020 with agreement to sign separate Soil Investigation with EPC contractor. EPC contract was amended on 20 Feb 2020 to include soil investigation in the scope of works. |
| Geographical Location | Jamshoro |
| Safeguard Categories | |
|---|---|
| Environment | A |
| Involuntary Resettlement | B |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | This project is categorized as ?A? for environment. The project will benefit the environment by restoring the site and reducing the sulfur emissions per kWh generated in comparison with power generated from high-sulfur HFO. In compliance with ADB?s Safeguard Policy Statement (2009), an environmental audit of the existing facility and environmental impact assessment study of the planned two new units was prepared, with the draft disclosed on 26 June 2013. The new coal-fired unit will produce large quantities of ash and soot, requiring specific handling (para. 20). Site remediation will address contamination issues, such as oil-contaminated soil, waste metals, and asbestos disposal. Mitigation measures include (i) effluent water management, (ii) construction of a hazardous waste storage facility, (iii) development of a landfill site for colony waste, (iv) rehabilitation of evaporation ponds, (v) emissions control measures to address excessive SO2emissions, and (vi) ash disposal and traffic management. As a loan requirement, the implementing agency will implement an annual comprehensive monitoring program to measure GHG emissions and effluent. Project management and project implementation unit environment staff will be supported and trained to ensure compliance during implementation and operation. Training sessions will be held for engineers to mainstream environmental safeguards. Background levels of fine particulate matter (less than 2.5 microns in diameter [PM2.5]) in the project area exceed the applicable standards. The high levels of PM2.5 are generally attributed to informal power generation sources, which use dirty fuels and less efficient generation, and are employed to meet the country?s power shortages. An offset for the plant?s emissions of PM2.5 will be designed and implemented, with technical assistance, through further assessment of air quality and pollution sources within the airshed. The project will help reduce the power shortage and replace these fuels, which is expected to improve the baseline air quality and help offset the plant?s emissions. The PIC will assess options to offset the project?s GHG emissions, including reforestation through a collaborative United Nations initiative. |
| Involuntary Resettlement | The project is categorized as 'B for resettlement. Approximately 100 acres of land belonging to 18 landowners (with a total of 106 family members) is required for an ash pond at Jamshoro TPS. Consultations were held with the owners and they are willing to negotiate with JPCL on the price. A land acquisition and resettlement plan was prepared and disclosed on ADB's website on 19 September 2013; it will be updated to reflect the final list of owners and price agreed between the owners (the Land Acquisition Collector or other authorized government officer in the Province of Sindh on behalf of the owners) and JPCL. JPCL will acquire 100 acres of land before the commencement of any civil works for the construction of the Ash Disposal Pond. JPCL will deposit with the relevant Land Acquisition Collector (or other pertinent authorized government officer) in the Province of Sindh the full price of the land within 30 days of the date of execution of EPC contract for the Plant. |
| Indigenous Peoples | There will be no impact on indigenous peoples. |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | The project will generate electricity that will be fed into the national grid. All consumers (urban, rural, industrial, agricultural, commercial and domestic) connected to the grid are potential beneficiaries; however their direct participation is not relevant to the project design. |
| During Project Implementation | The sites are contained within operating power plants. The only directly affected people are those affected by resettlement; they were closely consulted in preparation of the Land Acquisition and Resettlement Plan, and will participate in its implementation. Roadshows will be conducted to attract eligible coal suppliers and EPC contractors as well as build more market-friendly bidding documents. A Roadshow for EPC contractors and coal suppliers was held in May 2015 in Singapore. Another Roadshow for coal suppliers was held in October 2015 in Indonesia. |
| Business Opportunities | |
|---|---|
| Consulting Services | All consultants will be recruited according to ADB's Guidelines on the Use of Consultants. Quality- and cost-based selection (QCBS) method will be the default method for recruiting consulting firms with a standard quality-cost ratio of 90:10 due to its complexity and high impact of the project.??Project implementation consultant (international consulting firm) has been selected and mobilized to: (i) review conceptual design and bidding documents; (ii) assist in the recruitment of engineering contractors in accordance to ADB's Procurement Guidelines; (iii) develop and implement comprehensive project management plans to ensure the most efficient, timely, and economical implementation of the Project; (iv) undertake due diligence in relation to proposed consultants, subconsultants, contractors and subcontractors during procurement processes and if proposed to be included in contracts after contract award; (v) ensure non-objection by ADB for any subcontracting structures in excess of 10% proposed to be included in consulting or construction contracts; and (vi) supervise the engineering contractors for supply, installation, commissioning and testing of equipment. Estimated contract duration is 120 months. ??Capacity development consultant will likewise be engaged to assist GHCL and JPCL in developing its capacity for future coal project expansion. Recruitment was initiated in Sep 2017, but was withheld while various approaches are being considered. A new advertisement for consultant recruitment was issued in mid-Oct 2019. EOIs have been received and are currently being evaluated. TOR will be reviewed and revised.? |
| Procurement | All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines. ??JPCL will select the most appropriate contract form with ADB prior concurrence. A multi-stage bidding procedure without prequalification is preferred for the procurement of an EPC contract for the construction of two new supercritical coal-fired unit with 5-year O&M service contract. The procurement will follow international competitive bidding (ICB) procedures. Invitation for technical proposal was issued on 6 May 2016, and technical proposals were received on 26 Aug 2016. Financial proposals were opened on 22 Sep 2017. Contract award for Unit 1 was awarded in March 2018.??Procurement of certain packages for the site preparation civil works (Lots I, II, and III) were awarded in Dec 2016 while for others (Lots IV and V) were retendered. Contracts for Lot IV and Lot V were awarded in March 2018 and August 2018 respectively. |
| Responsible ADB Officer | Khattak, Ehtesham Zafar |
| Responsible ADB Department | Central and West Asia Department |
| Responsible ADB Division | Pakistan Resident Mission |
| Executing Agencies |
GENCO Holding Company Limited |
| Timetable | |
|---|---|
| Concept Clearance | 05 Jun 2013 |
| Fact Finding | 25 Jul 2013 to 02 Aug 2013 |
| MRM | 26 Sep 2013 |
| Approval | 09 Dec 2013 |
| Last Review Mission | - |
| Last PDS Update | 30 Sep 2020 |
Loan 3090-PAK
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 09 Dec 2013 | 12 Feb 2014 | 20 Nov 2014 | 31 Mar 2019 | 30 Jun 2023 | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 1,038.00 | Cumulative Contract Awards | |||
| ADB | 658.00 | 18 May 2023 | 533.99 | 0.00 | 81% |
| Counterpart | 380.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 18 May 2023 | 415.93 | 0.00 | 63% |
Loan 3091-PAK
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 09 Dec 2013 | 12 Feb 2014 | 20 Nov 2014 | 30 Jun 2024 | 30 Jun 2027 | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 3.30 | Cumulative Contract Awards | |||
| ADB | 3.30 | 18 May 2023 | 0.75 | 0.00 | 23% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 18 May 2023 | 0.31 | 0.00 | 9% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Partly satisfactory | Satisfactory | Satisfactory | Satisfactory | - | Satisfactory |
Loan 3092-PAK
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 09 Dec 2013 | 12 Feb 2014 | 20 Nov 2014 | 31 Mar 2019 | 30 Jun 2023 | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 30.00 | Cumulative Contract Awards | |||
| ADB | 30.00 | 18 May 2023 | 19.97 | 0.00 | 75% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 18 May 2023 | 14.64 | 0.00 | 55% |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| CAPACITY DEVELOPMENT CONSULTANT FOR GHCL/JPCL ENGINEERS / STAFF | Firm - Consulting | Closed | ||
| Capacity Development Consultant | Firm - Consulting | Closed | ||
| Loan No. 3090-PAK: Jamshoro Power Generation Project [ADB-L3090-PAK/ICB/JPGP/0003-3] | Invitation for Bids | Closed |
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|
| SITE REMEDIATION LOT V (CONSTRUCTION OF SEWAGE TRE ATMENT PLANT) | Loan 3090 | 17 Oct 2018 | MS/HEBEI INSTALLATION ENG'G. CO. LTD | XIANHUA ROAD 296, SHIJIAZHUANG, HEBEI CHINA,PEOPLE'SREP.OF | GENCO Holding Company Limited | 2,646,978.00 | 2,646,978.00 |
| EPC CONTRACT FOR CONSTRUCTION OF SUPERCRITICAL COA L-FIRED UNITS WITH 5-YEAR O&M (LOT I) | Loan 3090 | 13 Apr 2018 | SIEMENS-HEI CONSORTIUM | FREYESLEBENSTR. 1 ERLANGEN GERMANY | GENCO Holding Company Limited | 554,480,408.00 | 554,480,408.00 |
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Jamshoro Power Generation Project | Procurement Plans | Sep 2013 |