Term Project Report (29.01.

2022)

Quaid-E-Azam Solar Park (Bahawalpur)

Supervisor: Dr Tahir Iqbal

Team Members:
Farooq A. Cheema
M. Hasnat Iqbal khan
Syed Mohsin Raza

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1. Background

Pakistan has been facing an acute energy crisis for the last many years. There was an urgent
need to REDUCE the ever-widening gap between demand and supply of electricity in the
country. Punjab being the largest consumer of electricity in the country is worst hit in terms
of quality of life and economic cost. The Government of Punjab decided to focus on
alternative energy sources to meet the additional energy sources. Punjab has a vast potential
for solar power generation. There is a keen investor interest in solar subsector, as indicated
by entrepreneurs from various countries. The Punjab Government planned to develop Quaid-
e-Azam Solar Park near Bahawalpur on a fast-track basis to bring in investors as soon as
possible. The available area for the solar park is about 5.69 km wide from east to west, and
about 8.17 km long from north to south, covering an area of about 40.5 km 2. The land of the
project area is owned by the government. The solar park area is planned to generate a total of
1,000 MW in three phases: Phase-I for 100MWp, Phase-II for 300MWp, and Phase-III for 600
MWp.

1.1 Situation Analysis

Pakistan’s major electricity sources are thermal and hydro generation, meeting approximately
70% and 28% (respectively) of the country’s annual electricity demand. The primary thermal
generation fuels employed are furnace oil and gas. While both are produced domestically,
demand already outstrips supply by a considerable amount. Oil import is a significant burden
on the national exchequer and the increasing import bill continues to exert further pressure on
the foreign exchange reserves. Electricity mix of Pakistan (2013-2014) is presented in Fig 1.1

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 Fig 1.1: Electricity Mix of Pakistan by Source

Import of gas could be seen as a viable option to overcome the depleting domestic reserves.
However gas import has significant issues, mainly the need for substantial capital investment
in infrastructure, security difficulties and physical terrain concerns. Moreover, it would
increase Pakistan’s reliance on imported fuels with associated foreign exchange burdens.
This must be considered in the context of rising fuel costs for gas and oil-based fuels as a
result of uncertainty over future supply.

Alternatives to further fuel imports for electricity generation are the production of domestic
coal, generation from hydro-electric power, or other renewable sources, such as wind and
solar power. These options will assist in reducing Pakistan’s reliance on imported oil and
protect against resulting vulnerability to changes in global oil prices, which will in turn also
have a positive effect on the current trade deficit and inflating import bill.

As with gas, securing future supplies of domestic coal and hydro-electric power would
require significant spending on infrastructure. While Pakistan has domestic reserves of coal,
it currently makes up a very small proportion of the country’s total power generation. This is
due, in part, to the fact that most of the reserves are located in the remote Thar Desert region.
Exploiting the coal reserves would require significant upfront investment in local
infrastructure (including provision of water supplies), development of mines, housing and
related infrastructure, and investment in transmission lines, as a pre-requisite to any power
plant development. Hydroelectric power already supplies almost 30% of the domestic
electricity that is generated, and numerous sites for future investment exist. However, due to
their locations, this would also require significant investment in transmission and other
infrastructure. Moreover, there are various political issues relating to the development of
hydro-electric and coal generation power plants, which remain to be resolved.

In light of the prevailing circumstances at how the country’s future electricity needs might be
in a way that supports the environmental objectives of the Government of Pakistan; solar
power generation appears to be a viable and environmental friendly alternative for meeting
Pakistan’s urgent electricity demands. The development of solar power generation projects
could reduce dependence on oil based thermal power generation, increase diversity in
Pakistan’s electricity generation mix, and reduce greenhouse gas (GHG) emissions, all of
which will contribute towards projecting a positive image of Pakistan within the international
community. Also, the per kWh tariff for solar power projects are now comparatively lower

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than that of furnace oil projects; particularly the Rental Power Projects, which were
previously inducted to meet the urgent needs of electricity shortfalls.

1.2 Prospects of Solar Energy in Pakistan

Solar energy has excellent potential in areas of Pakistan that receive high levels of solar
radiation throughout the year. Every day, for example, the country receives an average of
about 19 Mega Joules per square meter of solar energy. Pakistan being in the Sun Belt is
ideally located to take advantage of solar energy technologies.

This energy source is widely distributed and abundantly available in the country. The mean
global irradiation falling on horizontal surface is about 200-250 watt/m 2 in a day. This
amounts to about 2500-3000 sun shine hours and 1.9 - 2.3 MWh/m 2 in a year. It has an
average daily global insolation of 19 to 20 MJ/m2 per day with annual mean sunshine
duration of 8 to 8.5 hours (6-7hrs in cold and 10-12 hrs in hot season) and these values are
among the highest in the world. For daily global radiation up to 23MJ/m 2, 24 (80%)
consecutive days are available in this area for solar energy. Such conditions are ideal for solar
thermal applications.

To summarize, the sun shines for 250-300 days per years in Pakistan with an average sun
shine hours of 8-10 per day. This gives huge amount of energy to be used for electricity
generation by solar thermal power plants.

A quick idea for the potential of solar energy in Pakistan can be obtained from the satellite
map of solar radiation released by National Renewable Energy Lab (NREL) of USA shown
in Figure 1.2

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 Fig 1.2: NREL Solar Map of Pakistan

2. Project Overview

The QSP has been built in Bahawalpur, a district of Punjab province. It is located at an
altitude of 118 m above sea level, with the coordinates of 29.394 0 N (latitude) 71.6640 E
(longitude). The first phase of the power plant is a pilot project initiated by the Government
of

Punjab to attract investors for the remaining 900 MW. Fig.2.1 provides a schematic of the
electricity generation system of the QSP. The power plant has an on-grid system, where the
DC power from the solar panels is converted into the AC power, before injecting it into the
national grid through a 132 kV grid station. The QSP (100 MW) project contains 392,160
solar panels, covering a land space of about 500 acres. The entire area is divided into 100
sections, each producing 1 MW of power. In each section, there are 13 rows of panels, a 1000
kVA rated power pad mounted transformer and two 500 kW capacity inverters. Out of the
total 13 rows, 10 rows consist of 8 tables and the remaining 3 rows consist of 6 tables. A
table is an arrangement of 40 panels (2 strings of 20 panels). A combiner box is used to
connect either 16 strings or 12 strings in parallel.

Fig. 2.1. Schematic to show the flow of electricity from generation in PV cell to national grid for
QSP
2.1 Overall Project Objectives

The overall objectives of the project are:

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i. Contribute to meeting the electricity supply deficit in project area in particular; and country
in general.

ii. Provide electricity to stimulate and support the expansion of local industry and service
businesses.

iii. By using indigenous renewable resources of power generation, avoid depletion of natural
resources for future generation and environmental stability.

iv. Create employment opportunities during construction and operations and also provide
opportunities for developing ecotourism.

v. Contribute to improved electricity supply service delivery to a limited extent specifically

having a wide rural outreach.

vi. Improve microeconomic efficiency of the power sector by reducing fossil fuel usage.

vii. Reduce greenhouse gas emissions from power generation and contribute to negligible
emission, effluent, and solid waste intensity of power generation in the system.

viii. Conserve natural resources including land, forests, minerals, water, and ecosystems.

ix. Improve the local physical infrastructure such as roads and transmission network in the
project area.

x. Develop the local economy and create employment, particularly in rural areas and in a
district that is considered as backward area, a priority concern of the Government of Pakistan

2.2 Project Scope

The project scope comprises of two main components, i) establishment of power generation
facility and ii) development of supporting infrastructure.

2.2.1 Power Generation Facility

With a planned total installed capacity of 1,000MW, Quaid-e-Azam Solar Park will be
developed in three phases. The installed capacity of 100MW is going to be developed in
phase-I, 300MW in phase-II and 600MW in phase-III. The Solar Park will be connected to
the national grid system. This is the first utility-scale, grid-connected solar power plant of
Pakistan, aiming at increasing the deployment of renewable energy in Pakistan. The park
ultimately aims at housing 1000MWp DC of solar power plants in a vicinity of 6,500 acres,
out of which 500 acres have been allocated for the first 100MW. The project would be
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developed using poly-crystalline photovoltaic cells without any backup generators and would
generate 100% clean energy to be fed into the national grid. The project would be generating
around 165,000 MWh of electricity on average for the first crediting period.

Power Grid Planning

NTDC is required to ensure evacuation of power from the said park through 220 kV
Transmission Lines while MEPCO is to evacuate power from the 132 kV network. MEPCO
network around the Quaid-E-Azam Solar Park comprises of 33 kV, 66 kV and 132 kV
voltage levels.

1) Phase - I (100 MW):

Scope of Work includes 132 kV double circuit transmission line for interconnection of solar
power plant with 132 kV Bahawalpur to Lal Sohanra single circuit transmission line (4km).

2) Phase - II (300 MW):

A. 132 kV T/Line, approx. 8 km, for connecting with existing BWP Cantt. - Lal Sohanra
T/Line.

B. 132 kV T/Line, approx. 4 km, for connecting with existing BWP –Lal Sohanra T/Line.

C. 132 kV T/Line, approx. 40 km, from Bahawalpur 220 kV G/S to Lodharan.

3) Phase - III (1,000 MW):

A. A new 220/132 kV G/S at Quaid-E-Azam Solar Park near Lal-Sohanra.

B. 220 kV T/Line, approx. 40 km, from Quaid-E-Azam Solar Park to Bahawalpur.

C. Three 132 kV T/Lines, each approx. 8 km, for connecting individual solar projects to 220
kV G/S within Quaid-E-Azam Solar Park.

2.2.2 Infrastructure Facilities

The scope of work includes the development of supporting infrastructure for QSP:

 Road & access works

 Electrical works
 Communicative Works
 Erosion & torrent control works

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2.3 Project Site

The proposed site for Quaid-e-Azam Solar Park is located in Cholistan desert, near Lal-
Sohanra National Park in Bahawalpur District. This site was selected by the Energy
Department, Government of the Punjab, in view of availability of abundant land with
adequate sunshine, availability of 132kV transmission line within the project area for
immediate evacuation of power up to 100M W, proximity of the grid station at Bahawalpur
and easy accessibility. The site lies 8.0km south of the Bahawalpur-Hasilpur highway, 6.0km
east of the Bahawalpur-Yazman Road, and the north of Kudwala road. Various water sources
are also available nearby. The total available land area is 10,000 acres which is mostly
barren. This scheme has planned that the total planning area is about 5,114.42 acres.

Fig 2.2 Project Site

2.4 General Layout Plan of QSP

Total installation capacity of QSP Park is 1,000 MWp. There will be 20 modular solar park
with capacity 50 MWp each. In first phase only 2 modules are under construction to produce
100 MWp. Each module is further divided in 50 sub-arrays of 1 MWp each. Power of a
module will be collected in switching station using 5 current collecting line with 10 MW
transporting capacity. The 33kv switching station will step-up voltage level to 132kv and it

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will be connected to power grid in ring-tie configuration with existing 132 kV overhead
transmission line.

Fig. 2.3 General Layout Plan of QSP

2.5 Estimated Cost of the Project

2.5.1 Estimate of Power Generation Facility

For a 50MWp power plant (poly-silicon fixed type) investment per kilowatt for a
Photovoltaic power plant is about US$ 2,131/ kWp as per the market price of main
equipment and materials of photovoltaic power generation system. Accordingly, it is
estimated that the total investment for power generation facilities of all power plants will be
US$ 2,131 m.

2.5.2 Estimate of Infrastructure Facilities

The infrastructure in Quaid-E-Azam Solar Park, mainly includes the roads, water supply and
sewerage works, electricity supply, communication facilities and erosion & torrent control
works. As per the development sequences already planned, this Project is divided into Phase
I, Phase II and Phase III respectively for preparing preliminary cost.The preliminary cost
estimate has been prepared as per the price level of the second quarter in 2013, which is
shown in table 1. The total investment of the infrastructure facilities is US$ 250 million out

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of investment for Phase-I will be US$ 16.748 million while for Phase II and Phase III, it will
be US$ 34.31 million and US$ 198.94 million.

Table 1. Estimate of Infrastructure Facilities

2.5.3 Exclusions

1) This estimate excludes the land cost.

2) The solar farm developers will step-up the power to 132 kV before connection in to the
132 kV lines in the main corridor.

3) The cost of 220kV step-up station is not included.

4) Costs of environmental protection and water & soil conservation and arrangement of labor
safety and industrial hygiene are not covered.

2.6 Planned Project Schedule

The planned completion period for all the three phases is as under:

 Phase-I (100MW): March 2015

 Phase-II (300 MW): End of 2015
 Phase-III (600 MW): End of 2016

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2.7 Stakeholders involved in the Project

• Supervising Agency: Punjab Power Development Board (PPDB) / Alternative Energy

Development Board (AEDB)

• Contractor (EPC+ O&M) Phase-I : TBEA Xinjiang SunOasis Co. Ltd

• Contractor (EPC) Phase-II : Zonergy Company Ltd

• Coordinating Ministry: Ministry of Water and Power

• Operator: Quaid-e-Azam Solar Power (Pvt.) Ltd

3. Execution of QSP Project

Punjab Energy Council gave approval to setting up of Quaid-e-Azam Solar Park at Lal
Sohanra and Din Garh in Bahawalpur district of southern Punjab. In the first phase,
construction of solar park at Lal Sohanra, over 11,000 acres of land, would be started
immediately and residential colony, park, dispensary, school, mosque and other basic
amenities would be provided.

Table 2. Implementation of Project Milestones

The Cholistan desert is an ideal spot for solar power, the area gets 13 hours of sunlight every
day while the huge expanse of flat desert is ideal for a large commercial project like this one.

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Some 400,000 solar panels, spread over 200 hectares of flat desert. The 100MW photovoltaic
cells (PV) solar farm was built by Chinese company Xinjiang Sun Oasis in just three months,
and started selling electricity to the national grid in August. This was the first energy project
under the $46 billion China-Pakistan Economic Corridor (CPEC), a key part of China’s new
silk road, linking the port at Gwadar in southern Pakistan with Kashgar in China’s western
region of Xinjiang.

Quaid-e-Azam Solar Park was scheduled to be developed in three different phases with a
total capacity of 1000MW when finished. The first 100MW powerplant was completed in
2015, costing approximately $131 million. This project was completed through Government
of Punjab’s equity with a 70% financing by the Bank of Punjab. The government of Punjab
leased the land used for this project at the rate of $1 per annum for each acre.

The 100MW plant was the pilot stage of a more ambitious plan to build the world’s largest
solar farm. The actual plan was to complete the project in 2017 with capacity of around 5.2
million PV cells able to produce 1000MW of electricity, enough to power nearly 320,000
households. The construction of next phase of the project was led by famous Chinese
Company Zonergy.

Before the start of the project, the site was nothing more than wilderness. Now a mini city
has emerged in the middle of the desert, with over 2,000 workers accompanied by heavy
machinery, power transmission lines, blocks of buildings, water pipes and pylons.

A rigorous and meticulous plan was followed for the procurement of the project, using
international standards which were based on standards provided by the International
Federation of Consulting Engineering. The project contractor provided a performance
guarantee for a period of 25 years as a bank guarantee. This was a measure introduced to
ensure quality and the life of the power plant. The solar panels were independently tested for
quality and specification compliance, twice. One of the tests was done at the manufacturing
facility and another at the site, conducted by PV Lab of Germany. The project managers
tested transformers at their manufacturing plants before they were shipped to Pakistan.

4. Key Challenges

The Quaid e Azam Solar Park was one of the biggest projects of Pakistan and there were
number of challenges encountered during its execution. Some of the challenges were

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addressed properly while most of them still needs proper management and attention. These
challenges are discussed as below:

4.1 Cleaning of PVs

When PV panels were first installed, panel manufacturers suggested that rainfall was
sufficient enough to maintain panel generation efficiency. This worked for installations with
enough annual rainfall but in those areas where it was inadequate or where rainfall alone did
not remove contaminants, power generation quickly degraded and quality was compromised.
To overcome the inefficiencies of the rainwater-only regime, many panel operators now use
local water supplies and treated water, Water use requirements for solar power plants depend

on the technology and climate conditions at the site . PV panels requires little maintenance,
according to QASP, but they need to be kept squeaky clean. An estimated one litre of water
is used to clean each panel. Water consumed to clean the eventual 5.2 million panels built
will be colossal for a country that is fast becoming water stressed. Currently, 30 people take
10 to 15 days to clean the 400,000 cells. So, there must be enough water supply with the help
of tube wells or other sources to clean the panels in order to get maximum output.

4.2 Environmental Factors

The performance of a solar PV installation is highly dependent on the environmental factors.

As the environmental parameters change, the power output varies. High solar irradiance
causes an increase in output; however, increase in ambient and panel temperature has a
decreasing effect. The intermittent clouds or days with higher humidity tend to hinder the
energy production as high energy wavelengths of the electromagnetic spectrum are absorbed
in the atmosphere, leaving diffused radiation reaching the earth consisting of low energy
wavelengths, not enough to fulfil the bandgap of the PV device. Similarly, a change in
declination angle of the earth toward the sun causes a variation in power production
throughout the year, requiring an optimal tilt of solar PV modules. The PV plant produces
optimal energy during and around day time, as the major deciding parameters irradiance and
temperature are moderate and closer to Standard Temperature.

As the QSP is located in the center of the desert due to which there are various sand storms,
making the PVs dirty. The small particles of sand on the surface of PVs hinder the sunlight to

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be absorbed completely by a Panel due to which the output is compromised. The solar panels
have a limited life of twentyfive years and plans for their disposal have not been made
apparent in project documents yet, leading to fears that the silicone would be dumped in the
desert. Additionally, it was reported by news agencies that the construction led to mass
deforestation in the region.

4.3 Wildlife and Biodiversity

The increasing human activity disturbed the arid region’s rich biodiversity and wildlife, such
as the Indian gazelle, caracal cat and houbara bustard. Likewise, deforestation was the major
challenge too and raised serious questions before the start of the project.

Cholistan’s thousands of acre land having countless trees had been transferred under Chief Minister
Shahbaz Sharif’s directive by the Cholistan Development Authority (CDA) Bahawalpur to the Punjab
Energy Department at the launch of the 1,000-megawatt QASP in 2013.

In the first phase, a 100MW unit of the project was commissioned in an area of 500 acres of reserved
land by the prime minister.

The Cholistan land had to be added to the project and the energy department entrusted this task to a
foreign company which further gave a contract to some persons to clear the desert area off the
existing hundreds of thousands of trees for installation of solar panels.

Sources said the contractors had started removing trees from the park area more than a month ago and
already sold many of these in the market rather than their auction by the energy department. They
loaded trees onto tractor-trolleys at night and after seeking gate passes from the exit points managed
to dispose of these, earning millions.

5. Project Analysis

Quaid-e-Azam Solar Park was a joint project of the government of Punjab, Bank of Punjab
and TBEA Ltd. of China. It will be the Pakistan’s as well as one of the world’s largest solar
power projects. The first phase will have 400,000 solar panels and the estimated cost of the
panels is $131 Million with a power generation ability of 100 megawatts. Ivanpah, California
is the largest solar power plant which generates massive 392 MW of electricity; Quaid-e-
Azam Solar Park will produce 2.5 times more power than the Ivanpah.

A project validation report of the Quaid-e-Azam Solar Park concluded that the project was
performing as per the criteria set out by Pakistan, compliant with all guidelines laid down by
UNFCCC. The monitoring plan provided by the manager for the plan was also sufficient and

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transparent. The report found that emission reduction aimed at 6868,000 tonnes of carbon
dioxide would be successfully achieved before the end of the first crediting period. The
calculations used by the project team for this were found to be adequate and transparent,
using conservative estimates to reach conclusions.

The first project phase was completed on time in 2014 within the set budget. Hence, it
fulfilled the budget, scope and cost requirements that all projects have. However, the second
phase of the project did not fare as well in the time management aspect. WAPDA raised
concerns over the award for construction, claiming it was not transparent and had been
prematurely awarded within just a week of the start of bidding by prospective companies.
This created significant problems and was an obvious challenge for the project.

During the installation process of the second phase, which was the 300MW share of the
project, there was an issue with the tariff for the 600MW part of the phase. This caused an
inconsistency in the project plan and drove a wrench in the project budget, making the
investment insecure. Ultimately, the construction firm challenged this decision and declared
that it would cease construction and work if tariffs were reduced, this culminated with
WAPDA granting subsidies to make up for the loss and increased the already high burden of
circular debt on the government.

There were two specific measures used to evaluate the performance of the project and these
include energy production, performance ratio and AC power generation. The energy
production was measured on the basis of a grid attached to the PV system, using daily and
monthly data of the energy supplier to the transformer.

The performance ratio was calculated on the basis of the total solar energy which was
converted into electric energy. This ratio shows is the middle point of actual energy
production and the target production. The performance ratio measured in 2016 was 0.60,
compared to the 0.8 of the most effective ‘best in class system’. However, provisions need to
be made for the natural environment as the production ratio changes due to the environment,
increasing in the high temperatures of Pakistani summers. An inverter in the plant had losses
of 2% in conversion, averaged out to 20% loss for the entire plant. These were the result of
backup power, the semiconductor material’s ohmic loss and switching loss.

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5.1 Overall Capacity Analysis

 Overall capacity: 1,000 Mega Watts

 Phase 1 Capacity: 100 MW
 Completion of Phase 1: December 2014
 Phase II Capacity: 300 MW
 Phase III Capacity: 600 MW
 Final Capacity: 1,000 MW
 Completion of final phase: Dec 2016
 Dedicated Area: 6500 Acres (Phase 1 Area: 500 Acres)
 Boundary Wall: 9 KM
 Annual solar Energy after final phase: 2,000 kWh/m2

5.2 Benefit Analysis

Jobs in Southern Punjab were scarce but not anymore. In the very near future, which has
already begun, Rs. 200 billion of investment is coming to the Bahawalpur area and this is
bringing hundreds of thousands of jobs locally. The project of solar energy park in
Bahawalpur has started and hiring for it has begun and already recruited numbers of
participants.

 Energy production for the population and business

 Much faster development than fossil generation capacity
 No operational fuel needed
 Relatively high local employment
 Risk reduction of global warning

Without any doubt, this project started a new age of development, modernization, and
prosperity and welfare for this under developed area of the Pakistan. Not only this benefited
the local areas a lot, the energy produced by this mega project was illuminating and warming
the homes across the country. Benefits of this project were enormous and would keep
multiplying. Similarly, under that project, the electricity production would continue to
increase, and later cost would be minimal. In other words, the investment will be recovered in
4 years and will have free electricity for the remaining 21 years.

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Another best thing is that the youth of South Punjab was given preference when it comes to
the job and employment. But merit was the thing to go, and no political or any other clout
was used. Transparency was the order of this project. This project will be the key cornerstone
of Pakistan’s national grid in future. This solar park will provide electricity to Bahawalpur
and adjoining cities of Southern Punjab.

5.3 Cost Analysis

The cost of the 100 MW project is around $131 million, that is the price per Watt is $1.31
moreover the expected lifetime of the plant will be 25 years. Entire production of energy in
Pakistan is 23,000MW, while we require double electricity than which we are producing
now. We should add also, there are 10 more power projects which are being set up in Thar to
capitalize the solar power for the heat generation and then to convert it into electricity. Once
this project is completed Pakistan will be amount the 10 countries producing more than
1,000MW electricity through solar power. We know that 400,000 panels are to be installed in
the first phase to produce 100 MW of electrical energy. This means that each Solar Panel
would produce 250 W and the cost of each panel would be $327.5 or rs.32750.

6. Political and Ethical issues

The success of the solar project is important for Prime Minister Nawaz Sharif, as only two
year were left in his term. The project had huge political implications for the ruling party.
Through this project the government also wants to send out the message to the outside world
that it has the capacity to undertake mega projects and will provide foolproof security to
investors.

Working in an area known as a hotbed of criminals and extremists, Security job is

challenging. “Not only the park is a national asset, also foreign nationals were working at the
plant, so the sensitivity was two-fold,” There were 800 to 900 men guarding the site, where
around 400 Chinese workers and over 2,000 labourers work at any given time.

Upon successful completion of the first 100MWp, Government of Punjab, Pakistan, decided
that it would not invest in the remaining 900MWp for which the land had been developed in
the solar park. So they invite private companies to invest, Several private local and
multinational companies expressed an interest to invest after seeing the success of the pilot

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100MWp.Thus, the second phase of project started in September 2015 by issuance of a Letter
of Intent (LOI) to Zonergy, a subsidiary of ZTE, telecommunication giant of China who
promised to invest the total $1.5 billion for 900MWp. Upon issuance of LOI, shows
Government of Punjab suspicious, Water and Power Development Authority (WAPDA)
criticized the award of the LOI for rushing through the competitive bidding process in just
one week's time. The central contract cell of WAPDA surmised that "Entire deal is shrouded
in mystery and would create legal and contractual problems for everyone”. Parallel to the
issuance of the letter of interest, the Punjab Energy Department moved a summary to the
chief minister to allow lease of 6,000 acres to the investment company to set up the plant.
The fast track and single source acceptance of eligibility criteria, bank guarantee, issuance of
LOI, setting an impossible deadline for feasibility study and instant initiation of summary to
hand over land describe dubious deal.

7. Similar Projects

7.1 Port Qasim Coal-Fired Power Plant, Karachi

The Port Qasim power plant is a 1.32GW (2 x 660MW) supercritical coal-fired plant
developed approximately 37km southeast of Karachi, Pakistan, at an estimated cost of
$2.085bn.

The plant is operated by Port Qasim Energy Holding, jointly owned by China’s Power
Construction Corporation (51%) and Al-Mirqab Group (49%). Both companies individually
invested $521m.
The initial ceremony for the project took place in May 2014 and major construction works
started in May 2015.The first unit of the project started power generation in November 2017,
while the second unit was connected to the grid in January 2018 and commissioned ahead of
the schedule in April 2018.
The coal power plant consists of two 660MW supercritical units. Each unit includes a boiler,
steam turbine and generator. The single reheat, once-through boiler features a regenerative
tri-sector rotary type air pre-heater. The project created more than 2,000 jobs and generates
sufficient power to serve between three and four million households a year.
The steam turbine is a supercritical, reheat-type turbine capable of operating at a speed of
3,000rpm. The generator operates at a voltage of 22kV and speed of 3,000rpm.
For 30 years, the electricity generated at the plant will be purchased by the Government of
Pakistan at 8.12 cents per unit.
The coal power plant project achieved financial closure in December 2015 with the Export-
Import Bank of China (China EXIM Bank) providing a debt facility. EXIM provided $1.56bn
required for construction of the plant.

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Harbin Electric supplied the boilers, while Dongfang Electric Corporation (DEC) provided
the generators under a contract awarded in May 2015. Sinohydro Harbour was awarded the
engineering, procurement and construction (EPC) contract for the coal unloading jetty and
channel.
7.2 KANUPP-2
In 2015, Chinese energy contractors became interested in Karachi Nuclear Power Plant –
eventually the Pakistani administration and Chinese government signed an energy agreement
to construct two Hualong One reactor units at the $9.5 Bn with each reactor producing 1,100
MW. The KANUPP-2 is a pressurized water reactor (PWR) supplied by the China National
Nuclear Corporation, and is jointly designed by the engineers of the Pakistan Atomic Energy
Commission. This brand of reactor, known as the ACP-1000, has not yet been built or tested
anywhere. The Pakistan Atomic Energy Commission (PAEC), which will operate these
reactors.

The $10bn project is being built with financial assistance from China, the biggest energy and
infrastructure investor in Pakistan. According to Dr. Ansar Pervaiz, then Chairman of the
Pakistan Atomic Energy Commission, said that Chinese banks have provided $6.5 Bn for this
project as loans.

Karachi nuclear power plant is located on the Arabian Sea coast, approximately 18km east of
Karachi. The construction of the Kanupp-2 reactor unit started in August 2015 and the start
of commercial operations scheduled for 2021.

On 2 December 2020, the loading of the nuclear fuel started with the clearance from the
Nuclear Regulatory Authority. On 20 March 2021, the K2 was synchronized with the nation's
electricity grid system and started on time.

7.3 Neelum–Jhelum Hydropower Plant

The Neelum–Jhelum Hydropower Plant is designed to divert water from the Neelum River to
a power station on the Jhelum River. The power station is located 42 km (26 mi) south of
Muzaffarabad, and has an installed capacity of 969 MW. The project was intended to begin
in 2002 and be completed in 2008 but this time-frame experienced significant delays due to
problems meeting rising costs. Additionally, the 2005 Kashmir earthquake which devastated
the region required a redesign of the project.

At the time approval in 1989, it was to cost $167million USD but due to delays project cost
rises to $2.89 billion USD in 2011 and it was completed in 2018 with cost $5.1 billion USD.

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In April 2018, the first unit of 242.25 MW was commissioned at a levelised tariff of Rs 13.50
per unit. The project faced a cost overrun of almost $4.9 billion USD and a delay of over 21
years.

The project was constructed under the supervision of the Water and Power Development
Authority (WAPDA) and funding was achieved through the Neelum Jhelum Hydropower
Company, taxes, bond offerings, middle-eastern and Chinese banks. WAPDA successfully
secured loans from Chinese banks and Middle East.

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