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Offline Farzooq

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Power Sector
« Reply #-1 on: March 19, 2010, 09:04:37 AM »
Banks seen unwilling to lend to cash-strapped power utilities  
 
Friday, March 19, 2010
By Saad Hasan

KARACHI: A senior banker on Thursday urged a strategy to resolve the circular debt issue of power distribution companies, saying that banks would be reluctant to lend money to these cash-strapped entities, which were losing billions of rupees every month.

Atif Bajwa, President MCB Bank said: “It is very important that issue of circular debt is settled once and for all because banks can not be expected to extend loans forever.”

“But there has to be some strategy that ensures power companies are generating revenues, which meet all their costs,” he said on the sidelines of a conference.

Banks have already invested Rs175 billion in the government guaranteed TFCs last year, all of which went to paying off inter-corporate circular debt.

The circular debt has again ballooned to over Rs80 billion as the KESC, PSO, Hubco and SSGC continue fight to recover receivables from each other. The TFCs which carry interest rate of Kibor plus 1.75 and 2 per cent will mature in next four years. They have been issued through a power holding company that has a total of over Rs300 billion of the power sector debt on its books.

Industry people say the government will allocate close to Rs50 billion in the budget each year for the circular debt payment but fear that this would leave little for much needed overhaul of rickety power distribution and transmission system.

Munawar Baseer, former Chief Executive of Pakistan Electric Power Company (Pepco), said authorities are raising power tariff to phase out subsidies, but there is hardly any focus on addressing the real issue of power theft.

“Higher tariff will mean that consumers are paying for the losses incurred by power distribution companies,” he said, adding it doesn’t leave any incentive for the management to recover unpaid bills and curb technical losses.
 
« Last Edit: February 01, 2012, 10:04:14 PM by M&M »
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Power Sector
« Reply #-1 on: March 19, 2010, 09:04:37 AM »

Offline Farzooq

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Re: Power Sector
« on: March 21, 2010, 12:15:43 PM »
Power tariff likely to rise by 40pc in coming months  
 
Sunday, March 21, 2010
By Mazhar Tufail

ISLAMABAD: The power tariff is likely to be increased by another 40 per cent in a phased manner after June this year in line with the government’s commitment to the International Monetary Fund (IMF), official sources told The News on Saturday.

Official documents, available with The News, say that the increase in tariff remains a must to ensure funds from global donor agencies, including the IMF. The government also has plans to install more rental power projects, which are also one of the factors contributing to the rising cost of electricity, official sources said.

The term sheet of the Pakistan Electric Power Company (PEPCO) shows Rs60-80 billion loss despite recent increase in power tariff and the Company now plans to cut its losses by a further 30 to 40 per cent after June. Last year, the government gave PEPCO a subsidy of Rs80 billion.

“PEPCO - in the red because of massive corruption, nepotism and power theft - is eyeing for a subsidy this year as well,” an official said requesting anonymity. “The power theft accounts for 30 to 40 per cent of PEPCO’s losses every year, while the rest is because of corruption and mismanagement,” he said.

Analysts say that the hike in power tariff would not just hit the industry and businesses, but may also lead to an unprecedented increase in poverty and unemployment.

“PEPCO also plans to raise deposit fee for the connection and make security deposit mandatory for the industrial consumers,” the official said. “All these measures are being taken to pull the Company out of its financial crisis.”

PEPCO spokesman, Muhammad Khalid, however, said that he remains unaware of any plans to increase the power tariff. About the rental power projects, he said cabinet had approved eight such projects.

Managing power shortage remains a top priority, said Khalid. “PEPCO has prepared a bailout plan for the public and work is continuing on it. But there is no deadline to end this power crisis,” he said.
 
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Offline Farzooq

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Re: Power Sector
« Reply #1 on: March 26, 2010, 09:43:59 AM »
Circular debt: IMF may extend March 31 deadline
MUSHTAQ GHUMMAN
ISLAMABAD (March 26 2010): The International Monetary Fund (IMF) is likely to extend of March 31, 2010 deadline set for the resolution of the most intransigent of all issues ie of circular debt, well-informed sources told Business Recorder. The sources said circular debt is one of the important issues that would be discussed between the top officials of the United States Government (USG) and the Pakistani delegation.

The US team will consist of NSC Senior Director David Lipton and State Department's Co-ordinator for International Energy Affairs, David Goldwyn whereas Pakistan will be represented by the Secretary, Water and Power Shahid Rafi and Secretary Finance, Suleman Siddiqui, besides other officials.

Pakistan will request the USG to use its influence on the IMF to grant yet another extension in the deadline for the elimination of the circular debt, the sources added. Though Finance Ministry appointed a Federal Adjuster as per the directives of the federal cabinet - a decision in compliance with the first Letter of Intent (LoI) submitted by the government of Pakistan on November 20, 2008, the issue is still unresolved with Karachi Electric Supply Company (KESC), province and a couple of Discos unwilling to empower the Federal Adjuster to deduct their funds at source without reconciliation of bills, the sources maintained.

The government has established Power Holding Company Limited (PHCL) under the administrative control of Ministry of Water and Power but the entire debt owed by the power companies has not been transferred to the Holding Company registered with the SECP yet.

The Holding Company issued Rs 85 billion Term Finance Certificates (TFCs) on September 30, 2009 with a government guarantee. TFCs are not traded on the stock exchange. The transfer of the bulk of the remaining stock of circular debt of Rs 216 billion, which was scheduled to be transferred to the PHCL by March 31, is unlikely to materialise. The sources explained the reason for the delay in the transfer of debt as stringent conditions of commercial banks.

However, the Asian Development Bank (ADB) has advised the Finance Ministry not to bow down before these 'unreasonable terms' just for the sake of speed. The sources claim that the ADB and the World Bank will also support Pakistan in the extension of the IMF deadline.

The sources said the ADB's mission which visited last month also expressed dissatisfaction over the performance of power sector especially with regard to appointments to a couple of top positions. The mission, sources said, was of the view that transfer of debt incurred by the public power sector companies for the tariff differential shortfall has been delayed.

The mission agreed that the government should not be cornered into accepting unreasonable terms by the banks just for the sake of expediency. The Ministry of Finance has been servicing the loans from July 2009. According to Pakistan Electric Power Company (Pepco), all the performance contracts between the public power sector companies and the Ministry of Water and Power have been signed.

Pepco, the sources said, indicated to have these systems in place by July 2010. As mentioned in the October aide-memoire, the mission requested for a breakdown of the savings realised by the power sector companies thus far in realising their target of Rs 12.8 billion included in the plan.

As informed by Pepco, this is being achieved through forced savings from the O&M budget but the ADB is of the view that because of this there is a concern that there may not be adequate maintenance funds. Additional savings and inflow from arrears recovery were estimated at Rs 29 billion in October 2009.

The ADB has advised Pepco to co-ordinate with the power sector companies in the implementation of the plan. According to the Pepco's business plan submitted to the ADB, its cost-revenue gap is expected to grow to Rs 177 billion, despite notified increase in tariff and fuel adjustment.

"As planned, Rs 55 billion will be funded through the budget, and Rs 43 billion is expected to be recovered through fuel adjustment tariff increase," the plan said, according to sources. According to Pepco, un-recovered loss of Rs 22 billion during 2009-10 would be passed on to FY 2011 budget, and Rs 57 billion would be collected through quarterly tariff determinations.

When contacted, an official of Finance Ministry requesting anonymity told Business Recorder that the government will not make any change in business plan of Pepco including increase in tariff. However, in case there will be any major variation in oil price, the business plan can be changed. According to him, the Finance Ministry is also issuing new TFCs of Rs 15 billion with regard to circular debt.
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Offline Farzooq

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Re: Power Sector
« Reply #2 on: March 28, 2010, 12:19:04 PM »
Govt, global donars to discuss power tariff hike on Monday  
 
If IMF tranche not okayed by April 12, it could be delayed further

Sunday, March 28, 2010
By Mehtab Haider

ISLAMABAD: Representatives of multilateral creditors and Pakistani authorities are scheduled to meet on Monday, Mar 29, to decide whether to increase electricity tariff by six per cent from April 1, or defer it to avoid popular backlash, a senior official of the finance ministry said on Saturday.

The meeting had been called after an unexpected delay in approval of the IMF’s fifth tranche worth $1.2 billion for Pakistan, the official said.

The representatives of the World Bank (WB), the Asian Development Bank (ADB) and Pakistani authorities would hold the final round of talks on Monday to resolve the lingering controversy on increasing electricity tariff by six per cent, he elaborated.

There was a growing feeling among officials that inflation had reached a point where any further increase would trigger riots like those seen in the federal capital after the recent increase in transport fares, he said.

Pakistan had agreed with the WB and the ADB to further increase electricity tariff by six per cent from April to curtail the power differential subsidy within the envisaged budgeted limits of Rs55 billion, which according to donors estimates, was all set to breach the desired limit. Islamabad has already implemented its commitment by raising power tariff six percent and 12 per cent respectively in October 2009 and January 2010.

Increasing power tariff is not part of the IMF conditionalities, but multilateral creditors, including the IMF, WB and ADB, worked in a more coherent manner, so it was basically the brainchild of the WB and the ADB, and under which Pakistan is bound to raise power tariff.

“Now there is a need to keep political economy in mind during the decision- making process and efforts should be made to convince the donors the need to avoid any further increase in power tariff,” said the official.

There was no rationale for any further increase in electricity tariff at a time when the IMF had developed cold feet on approving the next tranche for the struggling economy of Pakistan, a top official of the Gilani government said.

Pakistani authorities, sources said, expected that the IMF’s Executive Board would meet on April 12 in Washington for approval of the next tranche under the Standby Arrangement program of $11.3 billion bailout package. But it depended on Islamabad’s ability to accelerate the process of tabling the Value Added Tax (VAT)-related legislation draft bill in the four provincial assemblies and subsequently in informing the IMF in this regard, the sources added.

“We expect that all the provinces, including Punjab, will formally inform us about tabling the draft legislation on VAT for bringing the services sector under the tax net on coming Monday, enabling us to implement the measure desired by the IMF,” said the official, adding that if the process was also conveyed to the IMF on the same day, then the approval of the next tranche of $1.2 billion could be considered by the Fund’s executive board by April 12.

Any further delay, the sources said, could put immense pressure on Pakistan’s economy as the release of the tranche would be further delayed because the annual meeting of the Bretton Woods Institutions (IMF and WB) was scheduled to be held on April 24 and 25.
 
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Offline Farzooq

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Re: Power Sector
« Reply #3 on: March 29, 2010, 09:14:48 AM »
IMF waiver may be sought: power tariff raise from April
ZAHEER ABBASI
ISLAMABAD (March 29 2010): Pakistan may request for waiver from International Monetary Fund (IMF) in respect of 6 percent increase in electivity tariff from April 1 in the wake of expected backlash from the masses amid growing power outages. Sources in the Ministry of Finance told Business Recorder that the issue of wavier on power tariff would be taken up with the IMF and it would not have any impact on fiscal deficit.

They said that total impact of holding on due increase in power tariff would be Rs 25 billion for the next three months, which would be met by using Rs 25 billion subsidy earmarked in the budget for wheat import.

Under IMF conditions, the government had agreed to raise the power tariff by 24 percent during the current fiscal year, in three phases. Tariff was increased by six percent in the October-December quarter and another 12 percent in January-March, while another six percent was committed by the government to the IMF to become effective from April 1. Sources said that further increase in electricity tariff at this point in time of deepening power crisis was not possible.

Any increase in the electricity tariff would aggravate anger of masses against the government and they might resort to protest and riots. This would ultimately have negative impact on growth and revenue and increase in the price of power would escalate inflationary pressure as well. Having taken into consideration all these aspects, sources said, the government was considering to request IMF for waiver in respect to power increase due from April 1. The government has not been able to reduce transmission and distribution losses or improve efficiency; subsidy on electricity would reach Rs 146 billion against Rs 66 billion budgeted for the ongoing fiscal year.

The government had allocated Rs 66 billion for power subsidies in the ongoing budget, while Rs 55 billion approval was sought during the second quarter of ongoing fiscal year. At present, approval of another estimated Rs 25 billion is being requested from the IMF.
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Offline Farzooq

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Re: Power Sector
« Reply #4 on: March 31, 2010, 11:18:01 AM »
PEPCO owes Rs185bn to oil, gas companies, IPPs: officials  
 
Wednesday, March 31, 2010
By Umer Bhatti

LAHORE: The total amount that the Pakistan Electric Power Company (PEPCO) has to pay to various entities stands at Rs185 billion against total receivables of Rs196 billion, company officials said on Tuesday.

This payable amount on part of the company makes it inactive to buy the fuel for its power plants, which would ultimately result in closure of power plants leading to further rise in electricity shortage and power outages, they said.

Currently the AES Pakgen (350MW) power plant is shut and Saba Power is near closure for want of fuel. Official record of PEPCO available with The News on Tuesday shows that the company has to pay Rs18.4 billion to the different gas companies at present. On 1st of March the amount was Rs18.1bn and only Rs900 million were given to the gas companies in the month of March.

PEPCO owes Rs6bn to Mari Gas, Rs4bn to PPL, Rs2bn to SNGPL and Rs6bn to SSGC at present. In the oil sector, PEPCO owes Rs23bn to PSO and Rs2bn to Attock Petroleum Limited. PSO dues were Rs25bn on March 1, around Rs4 billion were paid during the month, but no money was paid to APL and its debt lies at Rs2bn at present.

Company record shows that PEPCO owes Rs91bn to the Independent Power Producers (IPPs). The amount was Rs87.5 billion on 1st of March and there was an addition of Rs27bn in the March and the company had paid Rs24bn to the IPPs in March.

PEPCO owes Rs37bn to HUBCO. The amount was Rs38bn in the start of March and the company paid a total of Rs5bn to HUBCO during the month. Due to this debt, the respective IPP would not be in a position to pay the money to the oil refineries and PSO and so the PSO and the refineries won’t be able to pay to the importers. A continuous stall in the supply of oil is seen due to this circular debt, PEPCO officials explained.

Similarly, PEPCO owes Rs25bn to KAPCO. The amount was Rs21bn on March 1st and there was an addition of Rs7bn in the bill during the month, and PEPCO paid 4bn to KAPCO during March 2010.

Moreover, PEPCO owes Rs42bn to WAPDA for buying hydropower. PEPCO has a receivable amount of Rs196bn from different corners and a large chunk of this money is absolutely unlikely to be paid to the company because of the complexities of the power sector.

A major chunk of the PEPCO receivables, Rs53bn, is due on Karachi Electric Supply Company. The Federaly Administered Tribal Areas owe Rs400 million to PEPCO, all provincial governments owe a total sum of Rs28bn, Federal Government and its various institutions owe Rs2.5bn, Government of Azad Jammu and Kashmir Rs3bn and the general public owes Rs96bn to PEPCO.
 
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Offline Farzooq

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Re: Power Sector
« Reply #5 on: April 02, 2010, 09:20:00 AM »
Power tariff raise decision delayed
ISLAMABAD (April 02 2010): The government has delayed the decision regarding the six percent increase on power tariffs. According to a private news channel quoting sources of the Finance Ministry, the condition of six percent increase was a part to a standby programme of International Monetary Fund (IMF). Country has to arrange Rs 24 billion in case the power tariff are not upped.

There is no wheat shortage feared in the country, as 24 million tonnes of wheat produce is expected this year; accordingly, the wheat import would be uncalled for. So, the Rs 24 billion out of Rs 25 billion apportioned for wheat imports would be spent on the power subsidy, sources said.
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Offline Farzooq

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Re: Power Sector
« Reply #6 on: April 04, 2010, 11:32:33 AM »
Govt plans Rs60bn TFCs to reduce circular debt: official  
 
Sunday, April 04, 2010
By our correspondent

KARACHI: Government plans to issue Terms Finance Certificates (TFCs) amounting to Rs60 billion by the end of the next month in an attempt to reduce the quantum of circular debt, which is hitting hard a number of state-run oil companies including Pakistan State Oil and PEPCO, a Finance Ministry official said on Saturday.

The federal government, which is also planning to issue Rs.100 billion worth Sukuk bonds, has also started spadework to issue short-term TFCs , said the official requesting anonymity.

“We are working on a three-pronged strategy to improve the health of ailing power producing units,” he said. Along with the issuance of TFCs, power tariff are being increased and these companies are being restructured to cut their transmission and distribution losses, he said.

The government has already raised the power tariff by 18 percent, while another six percent hike in tariff, as required by the International Monetary Fund (IMF) from April 1, has been deferred to give relief to the consumers to give some relief to the consumers.

The government hopes to meet the Rs.24 billion shortfall created by delaying the increase in power tariff, through higher wheat production.

The circular debt amounts to more than Rs.250 billion.

“After the launch of Rs.60 billion worth TFC by the end of next month, more such short-term papers are planned to eliminate the issue of circular debt,” the official said.

Farhan Mahmood, head of research at Topline Securities, said that circular debt remains the most chronic problem for the oil sector.

During last one year, the combined receivables of three major listed exploration and production companies - Oil and Gas Development Company Ltd, Pakistan Oilfields and Pakistan Petroleum Ltd - jumped by approximately Rs.24 billion.

“Had this amount not withheld by refineries and gas marketing companies, these companies would have drilled 35-40 more wells.”

But treasurer of a private bank said that the market faces liquidity problem. “Under these circumstances, it is difficult to raise such big amount through TFC as the country failed to get any new inflows.”
 
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Offline Farzooq

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Re: Power Sector
« Reply #7 on: April 07, 2010, 09:24:33 AM »
Circular debt increases to Rs 115 billion
RECORDER REPORT
KARACHI (April 07 2010): Total amount of circular debt has increased to Rs 115 billion as no major payments have been made by the government during the first quarter of year 2010. "Although the issue of circular debt had been once resolved by the government through issuance of terms finance certificates (TFCs) last year, the energy companies still face liquidity constraint, affecting their business operation", analysts said.

"Though, the oil price shock seen in 2008 has come to an end, its repercussions are still being felt within the energy sector companies of Pakistan in the shape of a huge circular debt", Farhan Mahmood, an analyst at Topline Securities said. According to annual accounts of different companies, the size of this debt was close to Rs 90 billion as of December 2009.

He said that major losers of circular debt issue are refining companies, which are mainly PARCO and exploration and production (E&P) companies. The term of circular debt is usually been referred to the situation where one company's funds are not released by the other party thereby resulting into non-payment to its creditors.

If a company's receivable is rising, it tries not to pay, causing payable to increase. This is what is happening amongst energy firms in Pakistan since last two years. Moreover, while calculating the circular debt, only overdue amount should be taken instead of total receivables.

Farhan said that the circular debt crisis is generated mainly from WAPDA, which is the largest generator and supplier of electricity in the country with its share of 52 percent. As per the latest energy statistics, WAPDA produces 24 percent of the electricity by using gas and 17 percent through furnace oil (FO) as fuel. SSGC and SNGPL mainly supply gas, whereas PSO and other OMCs supply furnace oil directly to WAPDA. Moreover Wapda also purchases costly power from IPPs (like Hubco, Kapco, and few small IPPs).

He said whenever Wapda delay payments, the entire energy chain gets affected. As at December 2009, overdue amount to be paid by Wapda to gas marketing companies' was Rs 5-6bn, Rs 20-22 billion to PSO on direct FO sales and Rs 58 billion to power plants including Hubco, Kapco while the remaining to small IPPs. As far as the sector wise impact is concerned, he said, OMCs and gas marketing companies mostly pass on their receivables to E&P companies.

According to the latest accounts, 65-67 percent circular debt is absorbed by E&P whereas only OGDC's overdue receivables stand at Rs 42 billion. Similarly, refineries specially Pak Arab Refinery (PARCO) and BYCO both which processes almost 92 percent imported crude oil are the major losers.

On the other hand, 22 percent decline in drilling activities of E&P companies and decline in refinery capacity utilisation to below 80 percent during last one year have already taken its toll on indigenous production of energy resources. Moreover, with 2500MW power plants expected in next few years, this issue needs to be resolved before it magnifies this debt, Farhan said.

On the positive side, with consistent increase in power rates under the IMF program, it is believed energy companies will get timely payments. This will reduce the risk of further piling up of circular debt at the same pace. "According to our estimates, the electricity subsidy has gone down to Rs 2-3 billion per month against Rs 14-15 billion per month few months back", he said. However, the only risk would be the addition of expensive electricity into the national grid once these rental power plants become operational, he added.

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Offline Farzooq

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Re: Power Sector
« Reply #8 on: November 26, 2010, 02:25:03 PM »
Pakistan’s Power Sector Valuation Update: 14.4% dividend yield on Offer; BUY!
Our investment case on Pakistan’s Independent Power Producers (IPPs) is based on a solid base of stable earnings and regular dividends. We recommend switching to yield plays HUBC, KAPCO and NPL as the index now presents a limited upside from current levels. The earnings of these IPPs remain insulated to macro economic shocks such as international fuel price variability, exchange rate depreciation and inflationary pressures. Furthermore, gradual increase in power tariffs could help fresh accumulation of circular debt, eventually reducing cashflow strains for the IPPs. Pakistan’s power sector scrips stand out amongst IGI Universe, offering a weighted average dividend yield of 14.4% for FY11.

Increase in Power Tariffs - A ray of hope for circular debt resolution
The GoP has decided to increase the power tariffs by 2% each month from Oct10- Jun11 which, equates to 21.5% increase in nine months. Although the already accumulated circular debt will have to be transferred to a power holding company, the pace of fresh accumulation could decelerate as the difference between the cost of generation and notified tariff narrows. Based on latest numbers published by NEPRA and our estimates, tariff differential after the 2% hike in Nov10, stands at PKR 2.79 per unit (36%). However with a further 19.2% increase planned from Dec10 onwards, the differential will decline to 14% based on the last reported cost per unit of generation. Moreover, IPPs set to come online under the 2002 power policy will pave way for reduction in cost of generation due to their thermal efficiencies.

Hub Power Company Limited - FY11 Dividend yield 13.8%; BUY with PT of PKR 53.4 per share - The stock has gained 10% since Nov1’10 and still offers a decent dividend yield of 13.8% at current levels.

Kot Addu Power Company Limited - FY11 Dividend yield of 15.4%; BUY with PT of PKR 47.2 per share - Dismal price performance of the stock during the last few weeks, has pushed dividend yield up to 15.4% for FY11.

Nishat Power Limited - FY11 Dividend Yield of 14.1%; BUY with PT of PKR 16.9 per share - preliminary analysis reveals an FY11 PT of PKR 16.9 per share. The stock trades at FY11 PE multiple of 4.7x and offers a dividend yield of 14% at current levels.

IGI Research

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Offline AGz

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Re: Power Sector
« Reply #9 on: February 28, 2011, 09:58:39 AM »
What is the result of NCPL?
Aurangzeb A. Durrani
MSManiar Financials (Pvt.) Ltd.

Offline Farzooq

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Re: Power Sector
« Reply #10 on: May 04, 2011, 01:20:47 PM »
Electricity Generation Capacity
Elctricity produced in Pakistan is from three main sources:-
1). Hydral
2). Thermal (Gas/Steam/Furnace Oil)
3). Nuclear

There are four major power producers in country which include Water & Power Development Authority (WAPDA), Karachi Electric Supply Company (KESC), Independent Power Producers (IPPs) and Pakistan Atomic Energy Commission (PAEC). Below is the break-up of the installed capacity of each of these power producers (as of June-2008).

1. WAPDA

a. WAPDA Hydal
Terbela 3478 MW
Mangla 1000 MW
Ghazi-Brotha 1450 MW
Warsak 243 MW
Chashma 184 MW
Dargai 20 MW
Rasul 22 MW
Shadi-Waal 18 MW
NandiPur 14 MW
Kurram Garhi 4 MW
Renala 1 MW
Chitral 1 MW
Jagran (AK) 30 MW
Total Hydal == 6461 MW

b. WAPDA Thermal
Gas Turbine Power Station, Shadra 59 MW
Steam Power Station, Faisalabad 132 MW
Gas Turbine Power Station, Faisalabad 244 MW
Gas Power Station, Multan 195 MW
Thermal Power Station, Muzaffargarh 1350 MW
Thermal Power Station, Guddu 1655 MW
Gas Turbine Power Station, Kotri 174 MW
Thermal Power Station, Jamshoro 850 MW
Thermal Power Station, Larkana 150 MW
Thermal Power Station, Quetta 35 MW
Gas Turbine Power Station, Panjgur 39 MW
Thermal Power Station, Pasni 17 MW
Total Thermal ==> 4811 MW

WAPDAs Total Hydal + Thermal capacity is ==> 11272 MW.

2. Karachi Electric Supply Company
Thermal Power Station, Korengi 316 MW
Gas Turbine Power Station, Korengi 80 MW
Gas Turbine Power Station, SITE 100 MW
Thermal Power Station, Bin Qasim 1260 MW
Total (KESC) ==> 1756 MW


3. Independent Power Producers (IPPs)
Hub Power Project 1292 MW
AES Lalpir Ltd, Mahmood Kot MuzaffarGarh 362 MW
AES Pak Gen, Mahmood Kot MuzaffarGarh 365 MW
Altern Energy Ltd, Attock 29 MW
Fauji KabirWala Power Company, Khanewal 157 MW
Gul Ahmad Energy Ltd, Korengi 136 MW
Habibullah Coastal Power Ltd 140 MW
Japan Power Generation, Lahore 120 MW
Koh-e-Noor Energy Ltd, Lahore 131 MW
Liberty Power Limited, Ghotki 232 MW
Rousch Power, Khaniwal 412 MW
Saba Power Company, Sheikhpura 114 MW
Southern Electric Power Company Ltd, Raiwind 135 MW
Tapal Energy Limited, Karachi 126 MW
Uch Power Ltd, Dera Murad Jamali, Nasirabad
586 MW
Attock Gen Ltd, Morgah Rawalpindi 165 MW
Atlas Power, Sheikhpura 225 MW
Engro Energy Ltd, Karachi ----- MW
Kot Addu Power Company Limited (Privitized) 1638 MW
Total (IPPs) ===> 6365 MW

4. Pakistan Atomic Energy Commission
KANUPP 137 MW
CHASNUPP-1 325 MW
Total (Nuclear) ===> 462 MW

Hydal Electricity generated by WAPDA varies between two extremities i.e. between minimum of 2414 MW and maximum of 6761 MW depending upon the river flow through the whole year. Total Power Generation Capacity of Pakistan (including all sources) is 19855 MW and the electricity demand (as of today 20-04-2011) is 14500 MW and PEPCO is merely generating 10000 MW.
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Offline DK

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Re: Power Sector
« Reply #11 on: May 04, 2011, 01:52:30 PM »
Electricity Generation Capacity
Elctricity produced in Pakistan is from three main sources:-
1). Hydral
2). Thermal (Gas/Steam/Furnace Oil)
3). Nuclear

There are four major power producers in country which include Water & Power Development Authority (WAPDA), Karachi Electric Supply Company (KESC), Independent Power Producers (IPPs) and Pakistan Atomic Energy Commission (PAEC). Below is the break-up of the installed capacity of each of these power producers (as of June-2008).

1. WAPDA

a. WAPDA Hydal
Terbela 3478 MW
Mangla 1000 MW
Ghazi-Brotha 1450 MW
Warsak 243 MW
Chashma 184 MW
Dargai 20 MW
Rasul 22 MW
Shadi-Waal 18 MW
NandiPur 14 MW
Kurram Garhi 4 MW
Renala 1 MW
Chitral 1 MW
Jagran (AK) 30 MW
Total Hydal == 6461 MW

b. WAPDA Thermal
Gas Turbine Power Station, Shadra 59 MW
Steam Power Station, Faisalabad 132 MW
Gas Turbine Power Station, Faisalabad 244 MW
Gas Power Station, Multan 195 MW
Thermal Power Station, Muzaffargarh 1350 MW
Thermal Power Station, Guddu 1655 MW
Gas Turbine Power Station, Kotri 174 MW
Thermal Power Station, Jamshoro 850 MW
Thermal Power Station, Larkana 150 MW
Thermal Power Station, Quetta 35 MW
Gas Turbine Power Station, Panjgur 39 MW
Thermal Power Station, Pasni 17 MW
Total Thermal ==> 4811 MW

WAPDAs Total Hydal + Thermal capacity is ==> 11272 MW.

2. Karachi Electric Supply Company
Thermal Power Station, Korengi 316 MW
Gas Turbine Power Station, Korengi 80 MW
Gas Turbine Power Station, SITE 100 MW
Thermal Power Station, Bin Qasim 1260 MW
Total (KESC) ==> 1756 MW


3. Independent Power Producers (IPPs)
Hub Power Project 1292 MW
AES Lalpir Ltd, Mahmood Kot MuzaffarGarh 362 MW
AES Pak Gen, Mahmood Kot MuzaffarGarh 365 MW
Altern Energy Ltd, Attock 29 MW
Fauji KabirWala Power Company, Khanewal 157 MW
Gul Ahmad Energy Ltd, Korengi 136 MW
Habibullah Coastal Power Ltd 140 MW
Japan Power Generation, Lahore 120 MW
Koh-e-Noor Energy Ltd, Lahore 131 MW
Liberty Power Limited, Ghotki 232 MW
Rousch Power, Khaniwal 412 MW
Saba Power Company, Sheikhpura 114 MW
Southern Electric Power Company Ltd, Raiwind 135 MW
Tapal Energy Limited, Karachi 126 MW
Uch Power Ltd, Dera Murad Jamali, Nasirabad
586 MW
Attock Gen Ltd, Morgah Rawalpindi 165 MW
Atlas Power, Sheikhpura 225 MW
Engro Energy Ltd, Karachi ----- MW
Kot Addu Power Company Limited (Privitized) 1638 MW
Total (IPPs) ===> 6365 MW

4. Pakistan Atomic Energy Commission
KANUPP 137 MW
CHASNUPP-1 325 MW
Total (Nuclear) ===> 462 MW

Hydal Electricity generated by WAPDA varies between two extremities i.e. between minimum of 2414 MW and maximum of 6761 MW depending upon the river flow through the whole year. Total Power Generation Capacity of Pakistan (including all sources) is 19855 MW and the electricity demand (as of today 20-04-2011) is 14500 MW and PEPCO is merely generating 10000 MW.

come on farzooq ur following that mail too. there is a slight mistake in it have you checked that.

Offline HAMDANI_Punjtani

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Re: Power Sector
« Reply #12 on: May 04, 2011, 01:57:14 PM »
expecting a massive slide in the last hour :down:
BOP,ENGRO,TGL,KEL,HASCOL,Efoods,Dgkc,ffbl

Offline Farzooq

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Re: Power Sector
« Reply #13 on: June 10, 2011, 01:06:55 PM »
Unrealistic Power Subsidy Budget presents risk of fiscal slippage

Eliminating the inter-corporate energy sector debt is one of the main conditions IMF has set for Pakistan. One way forward to address this issue is the elimination of the power cost – tariff differential, which according to our estimates still stands at 33% after a cumulative hike of 16% in FY11.

In the FY12 budget, GoP has capped the total power tariff subsidy at PKR 147bn, out of which only PKR 72bn is allocated for tariff differential payments. Based on our estimates, GoP will have to raise tariffs by a further 24% in FY12, if it plans to keep the tariff differential in the vicinity of the budgeted level.

We believe that a tariff hike of more than 2%/ bi-monthly is unrealistic and the GoP might face strong resistance from the coalition partners. A 2%/bimonthly hike would equate to an effective increase of 12.6% in FY12, lowering the tariff differential to ~PKR 1.70 per Kwh.

Nishat Power Limited (NPL) and Nishat Chunian Power Limited (NCPL) have also called for immediate payment of their dues, as they have collectively accumulated to PKR 9.13bn.

HUBC and KAPCO remain the safest bets in Pakistan’s IPP space.HUBC remains our top pick as it offers a total stock return of 51% for Dec11. With an expected earnings growth of over 27% for FY12, and with the Narowal expansion finally up, the stock appears ripe for re- rating. KAPCO on the other hand is expected to post earnings growth of 21% in FY11, and offers a total stock return of 29% for Dec11. BUY!
IGI Research

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Offline guru1

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Re: Power Sector
« Reply #14 on: June 22, 2011, 11:25:02 AM »
4 IPPs withdraw final notices on payment of Rs 5billion.
for details   http://paknewspoint.blogspot.com

Offline Farzooq

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Re: Power Sector
« Reply #15 on: July 15, 2011, 01:41:46 PM »
Pakistan’s Power Sector Valuation Update: 16.8% dividend yield on Offer; BUY!
 
•Our investment case on Pakistan’s Independent Power Producers (IPPs) is based on a solid base of stable earnings and regular dividends. Pakistan’s power sector scrips stand out amongst IGI Universe, offering a weighted average dividend yield of 16.8% for FY12.

•Eliminating the inter-corporate energy sector debt is one of the main conditions IMF has set for Pakistan. One way forward to address this issue is the elimination of the power cost – tariff differential, which according to our estimates still stands at 33% after a cumulative hike of 16% in FY11 (excluding monthly fuel price adjustments announced by NEPRA).
 
•HUBC - Our price target of PKR 49 per share reveals an upside of 29% from current levels. In addition, HUBC also offers a 12mo forward dividend yield of 13.9% (FY12 yield: 15.8%), which translates into a total stock return (TSR) of 42%.

•KAPCO with dividend yield at 16.9% for FY12 remains the safest high-yield bet in Pakistan’s IPP space. The stock offers PKR based IRR of 14.5% and an upside of 17% to our PT of PKR 49 per share.
 
•NPL - As per news reports, the IPPs have received overdue payments from NTDC in Jun11, and hence we expect a cash payout of PKR 2.0 per share from NPL along with its annual results, which translates into a dividend yield of 12.8% at current levels. Our Jun12 PT of PKR 20 per share yields a total stock return of 41%.
 
•NCPL paid out a surprise dividend of PKR 1 per share with its half yearly results. We expect NCPL to pay another PKR 1 per share as final cash dividend in FY11. Rolling forward our PT to Jun12, we have upgraded our PT to PKR 19.5 per share.

igi
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Offline Poker Face

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Re: Power Sector
« Reply #16 on: August 27, 2011, 10:41:49 AM »
Last-ditch option: IPPs ask govt to invoke sovereign guarantees

Nine Independent Power Producers (IPPs), with a combined power generation capacity of 1,800MW, have served notices to the government and central power purchasing agency (CPPA) to invoke sovereign guarantees for the recovery of their dues amounting to Rs31 billion.
The government is in distress as it has paid Rs1 trillion in the past three years on account of subsidy and cost of inefficiency in the power sector while banks refuse to give anymore loans to the power sector.
The cash-starved government failed to pay Rs40 billion interest on Rs300 billion loan against the power sector which were parked in power holding companies.
Sovereign guarantee is being used by the IPPs as a last-ditch option to recover funds from the government which were defaulted by power purchasers.
IPPs will be forced to halt operations due to the financial crunch which will result in hefty electricity loss to the national grid, said Independent Power Producers Advisory Council (IPPAC) Chairman Abdullah Yousuf.
The power producer leader also gave a heads-up that the country might face power outages during Eid as fuel is being transported to IPPs on a day-to-day basis. IPPs are running operations on a day-to-day basis which costs them Rs56 billion monthly of which only 50 per cent is being paid to them by the Pakistan Electric Power Company (Pepco), he said. Pepco paid Rs26 billion interest charges to IPPs last year.
Power purchasers are bound to pay 18 per cent interest charges in case of delay in payment, according to an agreement. Revoke of guarantee can become another setback for Pakistan that is seeking to resume and acquire fresh loans from international financial institutions, said Yousuf. The International Monetary Fund suspended its $11.3 billion loan programme in May last year, citing implementation of patchy reforms by Pakistan.
He said that the remaining power plants will also serve notices calling for sovereign guarantees due to the circular debt issue.
He said that historically the fuel mix for power sector was 70% hydel and 30% thermal which kept the cost of electricity low, however, the ratio has flipped and now almost 70% electricity is from thermal sources while the rest is from hydel. The cost of hydel electricity is almost Re1 per kilowatt hour (kwh), gas costs almost Rs4 per kwh, furnace oil costs around Rs12 per kwh while diesel generate power costs Rs16 per kwh.
Despite the increase in price of electricity, there is still a cost differential of almost Rs2 per kwh which the government is supposed to pay in the form of subsidy. This amount is estimated to be around Rs190 billion annually, Yousuf said.
Currently Pepco has to pay Rs280 billion to the power sector of which 29 IPPs are expected to receive Rs211 billion, Yousuf said.
The giants, Hub Power Company (Hubco) and Kot-Addu Power Company (Kapco) will get around Rs130 billion from the total while the rest of the IPPs will receive Rs81 billion.
Pakistan State Oil (PSO), oil supplier of Hubco and Kapco, is planning to cancel to import oil as its payable for the two power producers has reached Rs130 billion as oil is purchased on credit basis. PSO provided fuel worth Rs26 billion during the current month but only received Rs2 billion for them. PSO has to pay Rs20 billion to mature letter of credits in three days but doesn’t have the money for it, he said.
Tribune
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Offline Farzooq

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Re: Power Sector
« Reply #17 on: August 27, 2011, 12:18:01 PM »
Nine IPPs serve legal notice as govt fails to honour PPA 

 Khalid Mustafa
 Saturday, August 27, 2011 

ISLAMABAD: Nine independent power producers (IPPs), facing a massive cash crunch, served legal notices to the government on Friday for its failure to honour the power purchase agreements. This has severely dented the government’s credibility and exposed the country to severe international implications.

The nine IPPs include Atlas Power limited, Attock Gen Limited, Liberty Power Tech Limited, Nishat Chunian Power Limited, Orient Power Limited, Nishat Power Limited, Sapphire Electric Company Ltd, Halmore Power Limited and Saif Power Limited.

“The country will soon be deprived of 1,800 MW of electricity when these IPPs halt electricity generation, some after August 28 and others during Eid,” said an IPP representative on condition of anonymity. “This will exacerbate the power crisis while the country is already losing 2 percent of GDP annually on account of load shedding.”

Abdullah Yousaf, chairman of the Independent Power Producers Advisory Council, told a press conference Friday that in the first phase nine IPPs had served notices to the government and CPPA (Central Power Purchase Agency), since the power purchaser (Pakistan Electric Power company) had defaulted.

“The notice period is for 30 days and if the default is not averted by then the IPPs will serve notice directly to the government seeking compensation since in the case of default the government has given sovereign guarantees to compensate the IPPs within 10 days at any cost,” he said. “If the default is not averted within 30 days the country will be exposed to severe international implications as the government of Pakistan will have to pay the liabilities. This will be the first example wherein IPPs will invoke the sovereign guarantees. Other IPPs are also going to serve notices if the situation remains unchanged,” Yousaf added.

He said in the last 3 years the government has pumped Rs1 trillion into the power sector on account of subsidy, mismanagement and line losses. Subsidy will account for Rs190 billion in 2011-12 as against the Rs81 billion fixed in the budget. The production shortfall and line losses stood at Rs170 billion last year.

Explaining the gravity of the cash crunch Yousaf said that nine of the 29 IPPs, running their power plants on day-to-day fuel supply, had taken the extreme step of serving notices after the power purchaser failed to pay back their dues. Commercial banks have already declined to give more loans to the IPPs that have exceeded the credit limit.

“The CPPA owes Rs31.10 billion to these nine IPPs. The monthly billing of IPPs stands at Rs56 billion but they recover only 50% and have to arrange 50 percent funding from their own sources to run the plants,” Yousaf said. “If the government releases some amount these nine IPPs will start generating electricity. However, it all depends on the attitude of the government.”

He said four of these 9 IPPs (which have a combined capacity of 900 MW) run their plants on gas, which they will not get after August 28 owing to the annual maintenance of the Qaidrpur gas field. They have been asked to run their plants on diesel, which is very expensive and they have no money to purchase the costly commodity. Moreover running these plants on diesel will cost an additional Rs120 billion, which will increase power tariff by 10 percent.

Yousaf feared that the four gas-based IPPs might ultimately end up calling for the termination of their contract. He explained that total receivables of the 29 IPPs amounted to Rs211 billion. Hubco and Kapco are the two main IPPs whose dues have risen to Rs130 billion while the other 27 IPP have dues of Rs81 billion. Hubco and Kapco have an agreement with PSO for fuel supply for power generation, he said.

“If PSO halts fuel supply Hubco and Kapco will halt power generation. But the case of other IPPs is different, since they do not have such arrangement with PSO. They have to arrange fuel from their own pocket and have to pay in advance. They are facing acute cash constraints and are unable to generate liquidity to purchase fuel,” Yousaf said.
« Last Edit: August 27, 2011, 12:24:25 PM by Farzooq »
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Re: Power Sector
« Reply #18 on: September 08, 2011, 09:16:46 AM »
Power Tariff Increased

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has approved an increase of Rs2.04 per unit in power tariff of electricity distribution companies for July, excluding Karachi Electric Supply Company, under the monthly fuel price variation adjustment formula.
Nepra has sent a copy of the decision to the government and the tariff will be increased as soon as a notification in this regard is issued by the government. According to Nepra officials, the power distribution companies, through the Central Power Purchasing Agency, had sought a tariff increase of Rs2.07 per unit under the fuel price adjustment mechanism and the regulator announced the decision after evaluating accounts of the companies.
A Nepra official said the power companies in their petitions argued that they incurred a distribution cost of Rs6.42 per unit in July compared to Nepra’s reference price of Rs4.35 per unit. Therefore, to cover the difference between the reference price and the actual power cost, they said, the government should increase the tariff by Rs2.07 per unit.
However, after examining documents of the power companies, the regulator permitted a tariff increase of Rs2.04 per unit.
Tribune
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