Karachi August 9 2021: Lucky 660 Mega Watt coal based power plant will start commercial operations by October 2021, says Company Chief Financial Officer Atif Kaludi.
The construction activity for setting up 660 MW super critical, lignite coal-based power plant has been impacted due to outbreak of Covid-19 in China and subsequently in Pakistan. In this regard CPPA had notified cessation of OFME (Other Force Majeure Event) vide their letter dated October 16, 2020 wherein it was intimated that Interconnection related activities have recommenced from October 1, 2020 while the period from March, 2020 till September 30, 2020 shall be treated as excused. The Company in consultation with its legal counsel has not accepted the CPPA's OFME claim. In this respect the Company has also initiated dispute resolution proceedings under Article 18 of the Power Purchase Agreement. The company contends that such delay in interconnection works comes under the ambit of concurrent delay as per PPA due to NTDC's inability to timely resolve right of way issues.
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The Company, however, is taking all possible measures to mitigate the impacts of Covid-19 on the development of the Project with the support of the Contractor. The project has achieved completion status of approximately 98.7 percent by June 30, 2021 and the Company is following up with the CPPA and NTDC for the earliest completion of interconnection works which is essential for achieving the COD. Further, after successfully arranging the temporary back feed power from 132 kv K-Electric grid in March 2021, testing and commissioning activities of the plant has been commenced and off-grid tests are expected to be completed shortly.
Based on the current level of readiness by NTDC for providing interconnection facility and the Government's support, the target is to achieve Commercial operation by October 2021.
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