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    Nandipur Power Project

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    Muhammad Mubeen
    1) The Nandipur Power Project is a 425MW power plant located in Gujranwala, Punjab, Pakistan that was completed in March 2015 after initially being proposed in 2008. 2) The plant was built to address Pakistan's growing power shortfalls and was constructed by China Dongfang Electric Corporation and financed by the Punjab government. 3) However, the project faced major cost overruns, increasing from an initial cost of Rs.23bn to a final cost of Rs.57.4bn, and operational issues that led to high per-unit costs of Rs.12 compared to other plants. 4) A subsequent investigation found Rs.80bn in irregularities in the project, including delays

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    Nandipur Power Project

    Uploaded by

    Muhammad Mubeen
    92 views10 pages
    1) The Nandipur Power Project is a 425MW power plant located in Gujranwala, Punjab, Pakistan that was completed in March 2015 after initially being proposed in 2008. 2) The plant was built to address Pakistan's growing power shortfalls and was constructed by China Dongfang Electric Corporation and financed by the Punjab government. 3) However, the project faced major cost overruns, increasing from an initial cost of Rs.23bn to a final cost of Rs.57.4bn, and operational issues that led to high per-unit costs of Rs.12 compared to other plants. 4) A subsequent investigation found Rs.80bn in irregularities in the project, including delays

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    Energy Sector Project

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    1) The Nandipur Power Project is a 425MW power plant located in Gujranwala, Punjab, Pakistan that was completed in March 2015 after initially being proposed in 2008. 2) The plant was built to address Pakistan's growing power shortfalls and was constructed by China Dongfang Electric Corporation and financed by the Punjab government. 3) However, the project faced major cost overruns, increasing from an initial cost of Rs.23bn to a final cost of Rs.57.4bn, and operational issues that led to high per-unit costs of Rs.12 compared to other plants. 4) A subsequent investigation found Rs.80bn in irregularities in the project, including delays

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    92 views10 pages

    Nandipur Power Project

    Uploaded by

    Muhammad Mubeen
    1) The Nandipur Power Project is a 425MW power plant located in Gujranwala, Punjab, Pakistan that was completed in March 2015 after initially being proposed in 2008. 2) The plant was built to address Pakistan's growing power shortfalls and was constructed by China Dongfang Electric Corporation and financed by the Punjab government. 3) However, the project faced major cost overruns, increasing from an initial cost of Rs.23bn to a final cost of Rs.57.4bn, and operational issues that led to high per-unit costs of Rs.12 compared to other plants. 4) A subsequent investigation found Rs.80bn in irregularities in the project, including delays

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 10

    Public Finance

    Group# 6

    Nandi Pur Power Project


    Group Members
    Sherbaz, 17-ARID-2689
    Muhammad Mubeen, 17-ARID-2669
    Haroon Nazar, 17-ARID-2648
    Muhammad Mudasir, 17-ARID-2670
    Sohail Ahmad, 17-ARID-2691
    Introduction
    Name Nandipur Power Project
    Status Completed in March, 2015
    Duration of Project 2008-March,2015, but stopped and restarted in 2013
    Owner Government of Punjab
    Constructed By China Dongfang Electric Corporation
    Run by Nandipur Thermal Power Generation Company Ltd.
    Area of Serving Punjab
    Location Nandipur, Gujranwala, Punjab, Pakistan
    Operational Since March,2015
    Usage Primary: RLNG, Secondary: Furnace
    Production Capacity 425 MW
    Cost Initially Rs.27bn but project finished at Rs.58.42bn
    Need & Decisions
    Power Shortfall in 2008 15% less than Demand
    Power Shortfall in 2013 Demand: 15,000MW; Supply: 9500MW,
    5300MW Shortfall
    So, there was need of this Power Plant and project resumes in 2013
    Production Capacity 425 MW (with potential of 525 MW)
    This was first proposed in 2008
    Constructed by China Dongfang Electric Corporation
    Financed by Punjab Government
    Initial Cost Rs.23bn with 10% down payment to
    Dongfeng
    Final Cost Due to delays, project ended at Rs.57.4bn
    Structure of Plant (Feasibilty)
     It can be ran in both Simple Cycle and Combined Cycle Modes
     It consists of 3 gas turbines and 1 steam turbine
     GE (France) gas turbines, three, with capability of 4.95MW each
     DEC (China) steam turbine, one, with 138.8 MW capability
     It will produce 425MW on Furnace Oil and 460MW from Natural Gas
     Heat recovery steam generator (HRSG),
     Balance of Plant (BOP) equipment (like pumps and motors), and others
    have been supplied by DEC from China
     HSFO has been used instead of LSFO, which damages combustion system
     On-site ten oil storage tanks, each of 10,000 ton capacity,
     Eight for furnace oil and two for HSD, supported with a fuel oil treatment plant
     Plant system performance is not in compliance with Design Specifications and Contractual Obligations
    Cost of Plant (Implementation)
     Cost Discrepancies
     $847.016m Final Cost
     $574m quoted by government
     $329m approved by ECC

    Operation and Management


     $7m Service Charges
     Plus $15m Spare Parts

    Per Unit cost


     Rs.12 per Unit
    Monitoring
     The O&M cost of other thermal power plants was average
     Rs0.02500 (Muzaffargarh plant),
     Rs0.06890 (Guddu plant) and
     Rs0.13590 (Jamshoro plant) per unit (kWh)
     But Nandipur Costs Rs.12 per Unit
     Company wasn’t even asked to ensure Guaranteed Working of Plant and Machinery
    as defined efficiency parameters after 18-24 months of COD
     Lots of Data given by NEPRA is forged and doesn’t tells the real story which is happening now
    Irregularities
     Rs. 80bn in Irregularities
     Rs.17bn Loss is being caused
     Delays in Finalization costed Rs.4.5bn
     Rs.3.8bn were lost due to non conversion to gas from furnace oil
     Irregular and Excessive Payments costed Rs.1.2bn
     Contract in violation of Procurement Rules cost Rs. 46bn
     Other losses,
     the irregular appointment of the managing director of the project,
     uneconomical generation,
     poor performance and
     the illegal resumption of work with blacklisted firm M/S Dongfang
     loan agreement of Rs5.3 billion with Local Banks
    Summary of Presentation

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