Singapore awards $315m CCGT contract
Siemens KWU is to build a 740 MW gas fired combined cycle power plant on a turnkey basis for the Singapore power generator PowerSeraya Lt. The contract is worth about $315m. PowerSeraya is a subsidiary of Singapore Power.
The plant will comprise two power blocks, the first scheduled to come on line in mid-2002 and the second later that year. The plant will feature Siemens’ single-shaft technology which the company says will result in low investment costs, short construction times and high efficiency levels.
Pakistan connects Chasnupp to grid
The Chashma Nuclear Power Plant (Chasnupp) in Mianwali District (Punjab Province) has been connected to the grid. The plant, built in cooperation with China National Nuclear Corp. (CNNC), is now going through a period during which it will undergo various tests. It will then be operated for a minimum specified time before it is formally taken over by PAEC (Pakistan Atomic Energy Commission).
The plant can generate a maximum of 300 MW for the Water and Power Development Authority (Wapda). However, Wapda will get 280 MW, while 20 MW will be utilised to meet the requirements of the plant and the adjoining residential community.
The plant costing Rs35bn, has been constructed with financial and technical assistance from China.
World Bank credit for Vietnam development
The World Bank will provide a development credit worth $150m to the government of Vietnam, to implement a rural energy project.
The project will support the extension of the national electricity grid in 32 provinces and 671 communes, including 278 of the poorest communes identified by the government.
The State Bank of Vietnam’s governor said: “It is expected that this year, 100 per cent of the districts, 80 per cent of the communes and 60 per cent of the households in rural areas will have access to electricity.”
Power companies No.1, 2 and 3 Electricity of Vietnam (EVN) will be responsible for the project in the northern, central and southern regions, respectively.
Power Company No.1 will execute the Northern electrification sub-project. This project will cost $97.8m, including a credit of $76m from the International Development Agency (IDA). Power Company No. 2 will handle the Central Rural Energy sub-project which will cost $46.1m, including $33m from the IDA. Power Company No. 3 will oversee the southern provinces project which will cost $51.6m, including funding of $38m from the IDA.
PLN could be bankrupt by 2001
Perusahaan Listrik Negara (PLN), Indonesia’s state-owned utility will be bankrupt by the end of the year if the government fails to inject fresh capital into the company.
PLN’s president director Kuntoro Mangkusubroto said that the company had suffered a Rupiah11.1trillion ($1.3bn) loss during the first six months of the year largely on foreign exchange losses. “If the government does not inject fresh capital or do something, PLN’s capital will be negative or it will be bankrupt by the end of the year.”
Delays force pull out from Indian projects
Both EDF and Daewoo have pulled out of large power projects in India, citing unacceptable project delays.
EDF has pulled out of a power project in the western state of Marashtra. The company said a prolonged delay in getting the project off the ground led the firm to pull out of the $1.1bn, 1000 MW venture which also includes Alstom of France.
An EDF statement said there was a lack of clear commitment by the Marashtra State Elect-ricity Board towards providing escrow cover. Escrow cover is a payment security mechanism for the power sold by the producer. “Time taken to resolve project issues has been inordinately long all through the history of the project and it is already seven years since EDF became co-promoter,” the statement said.
It also said that coal pricing and risk issues were making the project unviable. Recent regulatory changes also made the project’s tariff unacceptable.
Meanwhile, Daewoo India Ltd, the promoter of the 1070 MW Korba (East) coal fired project in Madhya Pradesh has terminated its involvement in the development of the project. It also cited an inordinate delay in obtaining escrow cover, a key prerequisite for the company to achieve financial closure and begin construction.
Daewoo is seeking termination of the power purchase agreement (PPA) with MPEB and recovery of the security deposit.