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The power switch

By Hussain Ahmad Siddiqui
21 March, 2016

ENERGY

To help address the local and national power supply shortfalls, Azad Jammu and Kashmir (AJK) government has accelerated the pace of hydropower development, and plan to construct a number of additional medium, small and mini/micro hydropower plants across the State, through its own resources as well as with private investments.

On March 4, the AJK Development Working Party has approved construction of yet another medium hydropower project. Shounter hydropower project of 48MW capacity in Upper Neelum Valley will be constructed at a total cost of around Rs16.9 billion, for which engineering design has already been completed, and project tender documents prepared. Other hydropower projects, including Jagran-II project of 48MW, Dowarian of 45MW and Nagdar of 35MW capacity, are currently at various stages of implementation. Completion of these three hydropower projects, which all are foreign-funded,  is considered of strategic importance in the backdrop of growing electricity demand in the State for agro-based industry, mineral-mining, tourism and trade activities.

Rich in water resources, AJK has the distinction of having one of the largest hydropower stations in the country - Mangla, of 1,000MW installed capacity, whereas 969MW Neelum-Jhelum project is nearing completion. It also houses Pakistan’s first major hydropower Independent Power Producer (IPP) ie HUBCO/Laraib Energy’s New Bong Escape power station of 84MW installed capacity.

Water and Power Development Authority/National Transmission and Despatch Company/ Islamabad Electric Supply Company are responsible to supply power from the national grid to AJK where a comprehensive transmission and distribution network exists for providing electricity to consumers with access to about 70 percent of total population of about four million.

However, the AJK government is not totally dependent on the national grid for power supply, and has constructed a number of power stations over a period of time, utilising its own resources. At present, a total of 17 small, mini and minor hydropower stations are in operation, with cumulative installed capacity of about 55MW, besides various community-based power generation units. These power stations include Jagran-I (30.4MW) on Neelum River, which is connected to the national grid and supplements power generation at the national level, Battar (4.8MW) Sharian (3.2MW) in District Hattian, Kathai (3.2MW) in District Hattian, Rangar-II (3.2MW) in Poonch District, Qadirabad (3MW) in District Bagh, Kundal Shahi, (2MW) in District Neelum, Hajira (1.6MW) in District Poonch, and Leepa, (1.6MW) in District Hattian, whereas others are mini and micro power-stations as standalone units to provide electricity to far-flung areas of the State.

Various hydropower projects are currently under construction in public sector by AJK Power Development Organisation. These projects include Jhing (Muzaffarabad) 14.4MW, Kapa Banamula (Leepa) 4MW, Rehra (Bagh) 3.2MW, Sharda (Neelum) 3MW, Dhannan (Kotli) 1.7MW, Bhedi Doba (Haveli) and Galetar (Kotli), each of one megawatt capacity, Keel (Neelum) 0.75MW, Hillan (Haveli) 0.6MW, Patikka (Muzaffarabad) 0.5MW, Rangar-III (Poonch) 0.45MW and Guin Nullah (Poonch) of 0.25MW capacity. There are another 21 up-coming hydropower projects of total 56.53MW capacity in the public sector, scheduled for implementation within three years.

A large number of potential sites in the catchments of River Jhelum, River Poonch and River Neelum have been identified, and technical and economic parameters defined, with the help of national and international consultants. These sites, with an estimated potential of over 5,600MW, with high, medium and low water heads, could economically develop hydropower projects, mainly run-of-the-river type.

Detailed feasibility studies have already been initiated, under the AJK Annual Development Programme 2015-16, for small projects including Chamm Fall (6.4MW) and Sandoa Cross (1.75MW), and up-gradation of existing power stations.

Despite generally poor conditions for investment in Pakistan, disputed position of the State internationally, mountainous terrain and lack of infrastructure and skilled force, the government has attracted significant private investment. The first power project in private sector, Khari of one megawatt capacity, is in operation in Jari-Kass, Mirpur since September 2003, which is a captive power plant. Practically, there has been negligible headway on developing other projects in private sector.

However, the AJK Private Power Cell has issued LOI (letter of interest)/LOS (letter of support) to develop 23 hydropower projects of cumulative 268MW capacity.

These projects are being developed on Build, Own, Operate and Transfer (BOOT) basis or under public-private partnership mode.  These include Luat (49MW), Ashkot-I (40MW), Gumatnar (40MW), Arja Tain Dhalkot (36MW), Jagran-III (35MW), Batdara (10.2MW), Sahng (10MW), Sankaya (7MW), Jhing-V (6.1MW), Hotreri (5.4MW), Riali-V (4.8MW), Naushera (4.6MW) and Kathai-II (4.6MW). Significant progress has been achieved on these projects. The projects are categoried as medium, small and mini hydropower, which could be connected to isolated grid station or integrated with Wapda’s high voltage grid network.

Large hydropower projects are being developed in the private sector sponsored by the government of Pakistan through Private Power and Infrastructure Board (PPIB). Patrind hydropower project of 147MW capacity on Kunhar River is under construction, which is scheduled for completion by April 2017. Likewise, 102MW Gulpur project on Poonch River has recently achieved financial close, and is expected to be in operation by October 2019.

Other PPIB projects under implementation include 720MW Karot project on Jhelum River scheduled to achieve commercial operation by December 2020, for which financial close is in process. Also, the PPIB has re-invited proposals for development of Athmuqam raw site hydropower project (350MW) under the Power Generation Policy 2015. Another five projects of cumulative capacity of 1,210MW are under process with PPIB/Wapda, including Mahl (590MW), Sehra (130MW), Kotli (100MW) and Azad Pattan (640MW).

Major solicited AJK projects identified for future investment are Dudnial of 960MW and Ashkot-II of 700MW.

For long neglected, the remote AJK region is poised for economic development. The demand for electricity is projected to increase over 1,000MW by the year 2020. To meet the target however it is imperative for the AJK government to undertake speedy implementation on projects in the pipeline and ensuring completion within stipulated schedules and project costs.

The writer is ex-Chairman of the State Engineering Corporation