K-Electric seeks cabinet approval for 100% Thar coal conversion

K-Electric KEL has asked the Power Division to include its proposals in a summary for Federal Cabinet approval to convert Unit-1 of the 660-megawatt Jamshoro Coal Power Project to 100% indigenous Thar coal. The company proposed acting as project management consultant and power purchaser, without charging a consultancy fee.

KE also proposed appointing Harbin Electric International as the engineering, procurement and construction contractor. The company said the contractor was part of the original project consortium and had built the unit’s boiler. Its proposal would allow the contractor to use subcontractors while remaining responsible for guaranteed capacity and boiler performance after conversion.

The bankable feasibility study estimates the conversion’s EPC costs at $86.2 million and total project costs at $116.6 million. KE offered to keep the project within the estimated total cost and complete it within 18 months of financial close, and to bear cost overruns resulting from delays. KE has led the conversion initiative since 2023 and funded the full cost of the feasibility study.

For financing, KE proposed using domestic or international financial markets rather than the conventional PC-I route, and asked for State Bank of Pakistan support for foreign exchange payments tied to EPC procurement. The proposals also include negotiating a long-term coal supply agreement with Jamshoro Power Company Limited, covering Thar and imported coal, and transferring JPCL’s power purchase agreement to KE after commercial operation.

KE proposed building a transmission grid to deliver electricity to its network, either directly or through a power-swap arrangement. The company closed at Rs5.79 on Friday, October 30.