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Home / Business / $2b investment in 3 years: K-E to set up 600MW coal-fired plant, covert 400MW plant to coal; pay dividend
$2b investment in 3 years: K-E to set up 600MW coal-fired plant, covert 400MW plant to coal; pay dividend

$2b investment in 3 years: K-E to set up 600MW coal-fired plant, covert 400MW plant to coal; pay dividend

ISLAMABAD: The management of K-Electric has earmarked $1 billion for construction of a 660 MW coal-fired power plant in Gaddani and will spend another $400 million on conversion of 400MW furnace oil-run plant to coal.

The company has planned a total investment of $2 billion and the plan will be completed by June 2017.

K-Electric Chairman Tabish Gohar informed Finance Minister Ishaq Dar during a briefing on the company’s future plan. Mr Gohar led a four member delegation during the meeting.

He informed the Finance Minister that the company had planned to invest $2 billion in the power sector during the next three years. He said that the plan included construction of 600MW coal-fired power plant in Gaddani, convert existing 400MW capacity furnace-run plant to coal-fired. Similarly the company will convert two existing fully operational open cycle plants (220 MW and 180 MW GE JB) to combined cycle at a cost of $100 million besides distribution plan of $270 million in the first phase for 1,000 MVA transmission enhancement and rehabilitation project.

The meeting was also aimed at resolving some issues with National Electric Power Regulatory Authority (Nepra).

Senior officials of the company maintained that after years of losses, K-E had earned profits and had planned distribution of dividend of up to 15 percent to minority shareholders, which would be the first dividend to K-E shareholders after 20 years.

On the occasion, Finance Minister Ishaq Dar welcomed the K-E’s initiatives, saying that in view of the energy shortage, such initiatives were much required. He assured the delegation of all possible support towards resolving various issues faced by the company. Finance Secretary Dr Waqar Masood, Advisor Finance Division, Rana Assad Amin, Additional Secretary, Azra Mujtaba, Additional Secretary, Tariq Pasha, Additional Secretary (EF) Shahid Mehmood and other senior officials attended the meeting.