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Wärtsilä to Deliver 200MWe Power Plant to Pakistan

Monday, September 29, 2008 by Wärtsilä Power Plants

Wärtsilä, a leading provider of power plants for distributed and flexible power generation, has received another major order from Pakistan. This latest engineering, procurement and construction (EPC) order is worth €131 million, and has been placed by Nishat Chunian Power, an independent power producer (IPP), and will supply electricity to the country’s national grid. The combined cycle plant will have a total gross electrical power output of 200MWe.

This order follows another signed by Wärtsilä earlier this year. Together, these two projects, in combination with other Wärtsilä power plants already under construction or in operation in Pakistan, will produce a total generating capacity of more than 1,500MWe.

The Nishat Chunian combined cycle plant is due to be commissioned in March 2010. It will be located on the same site as the Nishat power plant in Jambar Kalan, Kasur District, near Lahore.

“Wärtsilä and the Nishat Group have worked together as one team throughout the development of both our IPP projects. Our first IPP project, developed by Nishat Power, is under construction and we are very happy with the level of support that we have received from Wärtsilä. We were, therefore, pleased to award our second IPP project, developed by Nishat Chunian, also to Wärtsilä,” says Mr Mian Mohammad Mansha, chairman of the Nishat Group.

The Nishat Chunian combined cycle solution will comprise 11 Wärtsilä 18V46 generating sets, with exhaust recovery boilers, supplying steam to a single steam turbine. The efficiency of Wärtsilä’s reciprocating engines is enhanced even further with the combined cycle concept. The Nishat Chunian power plant will have a notably high overall efficiency of 45% for the lifetime of the plant when running on heavy fuel oil at site conditions. This level of efficiency on low-cost fuel oil will enable the generating costs to be very competitive.

Wärtsilä will not only supply the plant equipment, but will also erect, test and commission the plant and provide local construction supervision. An O&M contract to operate and maintain the power plant is also under negotiation.

“As the leading supplier of power plants for their captive use and now for their IPP business, Wärtsilä has enjoyed a long standing relationship with the Nishat Group. In fact, with the Nishat Power and Nishat Chunian installations, they will become our largest customer in Pakistan, with over 490MW of installed capacity by 2010,” says Nomi Ahmad, regional director, Middle East, Wärtsilä Power Plants.

“We are especially pleased to have been awarded this project contract, and look forward to serving the Nishat Group throughout lifecycle of both projects. This order endorses not only the reputation of the Wärtsilä equipment, but also the support service capability that we are able to provide from our regional office in Lahore,” Mr Ahmad adds.

Both Nishat Chunian Power and Nishat Power are IPPs and members of the Nishat Group. The two IPPs have signed power purchase agreements with the National Transmission & Despatch Company, and implementation agreements with the Government of Pakistan under the 2002 Energy Policy of Pakistan.

The Nishat Group is one of the leading business groups in Pakistan with interests in the textile, cement, insurance and banking sectors.