Conversion of Karachi’s garbage into electricity: a letter of intent signed because deemed willing to invest 600 million dollars
KARACHI: Four world-renowned companies intend to make a cumulative investment of $600 million to convert Karachi’s waste into electricity and the Sindh government has also given them the green signal by signing a Letter of Intent (LOI ).
Sindh Energy Minister Imtiaz Ahmad Shaikh while talking to company registrar after signing the letter of intent here at a local hotel on Friday, said these companies will set up separate “waste-to-energy projects” with a total capacity of 175-200 MW of electricity on Jam Chakro Landfill, Karachi, by next year.
The provincial government will provide them with land for the establishment of factories as part of its “Green Energy, Clean Karachi” initiative, he said.
Once completed, it would be Pakistan’s first waste-to-energy project in Karachi. The four companies will perform work on their respective projects simultaneously.
“We expect around $600 million in foreign investment in these projects,” Imtiaz said.
This project will also be extended to other cities in the province in the future. We have also selected Hyderabad, Sukkur and Larkana in the next phase.
The Letter of Intent was signed by Imtiaz Shah, Director of Alternative Energy on behalf of Sindh Department of Energy, along with representatives of the five companies – M/s Khan Renewable Pvt Ltd, M/s Babcocks and Wilcox renewable energy, M/s China Machinery Engineering Corporation, M/s Green Waste Energy Pvt Ltd and M/s Engro Energy Pvt Ltd.
CM Sindh Law Advisor and KMC Administrator, Barrister Murtaza Wahab, Dutch Ambassador to Pakistan, US Consul General in Karachi, UAE Consul General in Karachi, as well as Energy Company Representatives and Secretary local government Sindh Najam Ahmed Shah, energy secretary Sindh Abu Bakar Madni and other officers from the provincial energy department and local government department were also present.
Imtiaz said around 15,000 tonnes of waste is generated daily in Karachi which is transported to designated landfills. The intention of global energy companies to make handsome investments in waste-to-energy projects bodes well for clean Karachi.
To one question, he said, the tariff for waste-to-energy projects would be determined by the National Electric Power Regulatory Authority (Nepra), and “If the Sindh Electric Power (Sepra) is established in the meantime, it will determine the tariff,” says Imtiaz.
Copyright Business Recorder, 2022