Friday, September 18, 2015

Outsourcing the way out of Nandipur debacle

The Nandipur Power Plant requires a furnace oil treatment plant with an annual capacity of 30 million tons, but the installed treatment plant has the capacity to process 19 million tons only that created hurdles in the way of operating the power plant at full capacity.

The National Engineering Services of Pakistan was the project consultant and it should have noticed and informed the authorities about the low-capacity treatment plant.

The government has now asked the EPC contractor, Dongfang, to enhance capacity of the treatment plant and has given it six months. It may install another plant to take the combined capacity to the required level.

The EPC contractor is bound to provide all equipment related to the power plant. It has submitted a $35-million guarantee and if it is found irresponsible, the guarantee may be encashed.

The Nandipur plant could produce 321 megawatts of electricity, which could be generated for six months before enhancing the capacity of furnace oil treatment plant. At present, the only option for the government is to run the plant at full capacity through natural gas, however, natural gas is not available.

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