ISLAMABAD: The Russian government has assured Pakistan to provide $1bn assistance to the country for the rehabilitation and up-gradation of the Pakistan Steel Mills (PSM) and bringing its annual production up to three million tonnes.
Sergey Abutidze, Deputy General Director for Development, JSC Technopromexport (TPE) Russia called on Chairman Board of Investment Mohammad Zubair to discuss the Projects of conversion to coal of Muzaffargarh Thermal Power Station, establishment of new 600MW coal-fired thermal power station at Jamshoro and rehabilitation/up-gradation of the PSM, official sources said yesterday.
Chairman Board of Investment (BOI) said that the construction of new coal-fired unit (500-600MW) with technical concept of 500MW coal-fired unit could be considered as a potential project.
Talking about the financial and technical assistance for rehabilitation/up-gradation of the PSM, Abutidze appreciated the role of the Russian government for assistance up to $500m along with the technical assistance for this purpose on government-to-government basis.
He also discussed about the two phases regarding the production of PSM: phase-I includes rehabilitation/up-gradation of up to 1.5 million tonnes per annum and phase-ii undertakes up-gradation of up to three million tonnes per year.
He said, “Russia will provide assistance of $1bn for this project. This matter has received positive response and is presently under active consideration at the highest level on the Russian side.”
Abutidze apprised the Zubair that TPE was one of the largest companies specialising in setting up of electric power stations. TPE has undertaken projects in Pakistan, including installation of units 1, 2 and 3 at the Muzaffargarh (660MW) in 1993-95 and Guddu (220MW) thermal power stations in 1981 with financial assistance of the former Soviet Union.
He said that the TPE was keen to undertake projects in Pakistan and able to provide complete turnkey solutions. It can assist customers in obtaining loans/financing for some projects, he added.
He further said that in June 2010 a TPE team visited Wapda and Pepco where the TPE was requested for assistance in the rehabilitation of the three Russian units installed at Muzaffargarh Thermal Power Station (MTPS).
A Frame Work Cooperation Agreement between JSC Technopromexport and Genco Holding Company was agreed. The funding for the MTPS project up to EUR500m for the rehabilitation and conversion of MTPS from furnace oil to coal was arranged successfully.
Internews
