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Preparatory Survey on Lakhra Coal Fired Thermal Power Plant Construction Project in Pakistan

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Preparatory Survey on Lakhra Coal Fired Thermal Power Plant Construction Project in Pakistan The Islamic Republic of Pakistan GENCO Holding Company Limited Preparatory Survey on Lakhra Coal Fired Thermal Power Plant Construction Project in Pakistan FINAL REPORT October 2016 JAPAN INTERNATIONAL COOPERATION AGENCY (JICA) Nippon Koei Co., Ltd Mitsui Consultants Co., Ltd. 4R JR(先) 16-040 FINAL REPORT for The Preparatory Survey on Lakhra Coal Fired Thermal Power Plant Construction Project in Pakistan CONTENTS Chapter 1 INTRODUCTION 1.1 Background of the Survey ......................................................................................................... 1 - 1 1.1.1 Deficit of Power Supply ........................................................................................................ 1 - 1 1.1.2 Generation Mix ..................................................................................................................... 1 - 1 1.1.3 Government Policy ............................................................................................................... 1 - 1 1.1.4 JICA Action ........................................................................................................................ 1 - 1 1.2 Objective of the Survey .............................................................................................................. 1 - 1 1.3 Rational of Coal Fired Thermal Generation ............................................................................... 1 - 2 1.4 Survey Area ............................................................................................................................... 1 - 3 1.5 Scope of the Survey .................................................................................................................. 1 - 3 1.6 Schedule of the Survey .............................................................................................................. 1 - 4 Chapter 2 Basic Data and Information 2.1 National Power Policy 2013 ....................................................................................................... 2 - 1 2.2 Development of Thar Coalfield .................................................................................................. 2 - 5 2.2.1 Summary of the Development Status ................................................................................. 2 - 5 2.2.2 Power Plant Construction Plan in Thar Coalfield .................................................................. 2 - 7 2.2.3 Block II ................................................................................................................................. 2 - 7 2.2.4 Block I ................................................................................................................................. 2 - 9 2.2.5 Block VI ................................................................................................................................ 2 - 10 2.3 Existing and Future Planned Generation Capacity .................................................................... 2 - 13 2.3.1 Existing Generation Capacity (except KESC) ...................................................................... 2 - 13 2.3.2 Generation (except KESC) in 2011-12 ................................................................................. 2 - 13 2.3.3 Future Generation Development Plan .................................................................................. 2 - 14 2.3.4 Power Demand .................................................................................................................... 2 - 15 2.3.5 Prioritized Projects Pushed by the Government other than Gaddani ................................... 2 - 16 2.4 Pakistan Power Park in Gaddani ............................................................................................... 2 - 17 2.4.1 Background of Gaddani ........................................................................................................ 2 - 17 2.4.2 Organization of the Power Park ........................................................................................... 2 - 17 2.4.3 Outline Plan .......................................................................................................................... 2 - 18 2.4.4 Budget for the Project ........................................................................................................... 2 - 19 2.4.5 Preparatory Work Schedule ................................................................................................. 2 - 19 2.4.6 Transmission Line from Gaddani .......................................................................................... 2 - 20 2.5 Oil to Coal Conversion ............................................................................................................... 2 - 21 2.6 Circular Debt .............................................................................................................................. 2 - 21 2.6.1 Circular Debt in the Power Sector ........................................................................................ 2 - 21 2.6.2 Clearance of Circular Debt ................................................................................................... 2 - 21 2.7 Upfront Tariff for Coal Thermal Generation ................................................................................ 2 - 22 2.7.1 Upfront Tariff ......................................................................................................................... 2 - 22 2.7.2 Operation and Maintenance (O&M) Cost ............................................................................. 2 - 23 2.8 Power Tariff for Consumer ......................................................................................................... 2 - 24 2.9 Budget for Infrastructures for Thar Coalfields ............................................................................ 2 - 25 2.9.1 Budget for the Infrastructures allocated by Government of Sindh ........................................ 2 - 25 2.9.2 Issues on Infrastructure ........................................................................................................ 2 - 26 2.10 Organization of the Power Sector .............................................................................................. 2 - 27 2.10.1 Power Sector Organization in the Federal Government ....................................................... 2 - 27 2.10.2 Organization of the Jamshoro Power Station ....................................................................... 2 - 28 2.10.3 Organization of IPP HUBCO Power Station ....................................................................... 2 - 30 2.10.4 Organization of Power Station in Japan ............................................................................... 2 - 31 Chapter 3 Selection of the Suitable Site 3.1 General ...................................................................................................................................... 3 - 1 3.1.1 Criteria for the Site Selection .............................................................................................. 3 - 1 3.1.2 Identification of Candidate Site ............................................................................................. 3 - 2 3.1.3 Major Issues Affecting Site Selection ................................................................................... 3 - 8 3.2 Site Conditions........................................................................................................................... 3 - 11 3.2.1 Mine mouth in Thar .............................................................................................................. 3 - 11 3.2.2 Indus River Area ................................................................................................................... 3 - 16 3.2.3 Karachi Port Area ................................................................................................................. 3 - 21 3.3 Infrastructures ............................................................................................................................ 3 - 24 3.3.1 Mine mouth in Thar .............................................................................................................. 3 - 24 3.3.2 Indus River Area ................................................................................................................... 3 - 56 3.3.3 Karachi Port Area ................................................................................................................. 3 - 73 3.4 Selection of Major Technology ................................................................................................... 3 - 81 3.4.1 Usage of Coal ...................................................................................................................... 3 - 81 3.4.2 Plant Size and Steam Condition ........................................................................................... 3 - 89 3.4.3 Condenser Cooling and Vacuum .......................................................................................... 3 - 93 3.5 Selection of Candidate Site ....................................................................................................... 3 - 97 3.5.1 Evaluation of Technical Aspect ............................................................................................. 3 - 97 3.5.2 Evaluation of Economical Aspect ......................................................................................... 3 - 103 3.5.3 Conclusion...........................................................................................................................
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