LAKHRA POWER GENERATION COMPANY Ltd. (GENCO-IV) LPGCL is a Public limited Co. which was incorporated under Companies Ordinance in Feb 2002 and started.

LAKHRA POWER GENERATION COMPANY Ltd. (GENCO-IV)

LPGCL is a Public limited Co. which was incorporated under Companies Ordinance in Feb 2002 and started functioning from 1st July 2002.

The company has been granted Generation License # GL/06/2005 by NEPRA on 18th Feb ’05.

NEPRA made determination of Tariff on 21st Feb ’05.

PLANT DATA

Installed Capacity(MW) 3X50

Area (Acres) 462.32 Colony: 150 acre Plant : 300 acre Intake area: 12.32 acre

Fuel Lakhra Lignite Coal

Supply Source M/S L.C.D.C.

Water Source River Indus (9 cusec)

Water Supply Through 20" P/L

Power Dispatch Through Three 132Kv Lines

Unit-Wise Detail

Unit Name Type COD/Age Installed

CapacityDependable

Capacity Fuel FSA

ST-1

Fluidized Bed Combustion

06.06.1995 50 MW 40 MW Lignite Coal

Coal supplied Agreement with LCDC

ST-2 14.10.1995 50 MW 40 MW Lignite Coal

ST-3 03.01.1996 50 MW 40 MW Lignite Coal

FBC POWER STATION LAKHRA

Ever since commissioning , this Plant faces many technical problems resultantly its availability and performance remained low, during 2001, it was decided that the Government of Sindh should take necessary action to privatize Lakhra Power Plant in consultation with Wapda. The privatization process of this plant remained very slow.

The station management in 2003 made a rehabilitation programme amounting to Rs.441 million which was scrutinized by a Tech Committee in June ’03 on the directive of BOD meeting.

However based upon Non Destructive Testing by experts of WAPDA Central workshop Faisalabad and historical data of Shutdowns, areas of replacements further reduced and expenditure to Rs.254 million.

But later it was decided to lease out Lakhra Power Plant and related facility on ROMM (Rehabilitation Operation Maintenance, & Management basis).

In result of an open bid , agreement for 20

years was signed on 11-09-2006 between LPGCL and M/s Associated Lakhra Energy Limited.

The management has stopped the comprehensive maintenance of Lakhra Power Plant after the lease agreement.

The Zonal Labor Union Lakhra has filed a petition in Sindh High Court , Challenging the leasing of Lakhra Power Plant .

M/s Habibullah energy the other bidder also filed petition in Sindh High Court against leasing .

After the Court case , the local management strives hard and rehabilitates the boiler No.1 and finally commission the boiler on 18.03.2007. Since then same unit is under operation successfully on 35 MW continuously.

On both Petitions Sindh High Court Hyderabad Circuit decides in favour of leasing.

Labour Union & M/s Habibullah Energy appealed in the Supreme Court of Pakistan against the decision of High Court of Sindh., which is still pending.

The date is in office from April 2010

General Characteristics

2007-08 2008-09 2009-10

Maximum Load (MW) 42 37 38

Minimum Load (MW) 03 04 05

Plant Capacity Factor (%) 35 31 32

Load Factor (%) 37 35 35

Utilization Factor (%) 13 11 11

Availability Characteristics

2007-08 2008-09 2009-10

Total No. of Shutdowns Nos 17 18 17

Total Shutdown (Hours) (Hrs.) 4941 5254 4854

No. of forced shutdowns (Hrs.) 17 18 17

Operating Period (Hrs.) 3819 3506 3906

Standby Period (Hrs.) --- 263 ---

Forced Outage Factor (%) 56 57 55

Planned Outage Factor (%) --- --- ---

Operating Factor (%) 44 40 45

Standby Factor (%) --- 3 ---

Plant Availability Factor (%) 17 18 15

Operation Characteristics

2007-08 2008-09 2009-10

Gross Energy Generation (MkWh) 136.353 113.194 116.379

Energy Sent Out (MkWh) 99.244 83.829 85.737

Reactive Power MVAR Generation (MkWh) 93.807 78.567 97.895

Auxiliary Consumption (MkWh) 3.822 4.297 3.296

Auxiliary Consumption (%) 27 26 26

Output Fctor (%) 73 74 74

Fuel Operation Factors

2007-08 2008-09 2009-10

Total Fuel Consumption (M. Ton) 162,200.00 121,030.00 125,482.00

Fuel Consumption/kWh (Kg/kWh) 1.19 1.07 1.08

Gross Heat Rate (Btu/kWh) 15913.02 14371.65 14570.98

Design Heat Rate at Maximum Load (Btu/kWh) 11212.22

Net Heat Rate (Btu/kWh) 21863.17 19405.99 19778.59

Thermal Efficiency (Gross) (%) 21.45 23.75 23.42

Thermal Efficiency (Net) (%) 15.61 17.59 17.26

Cost Factor

2007-08 2008-09 2009-10

Fuel Cost (Rs./Kwh) 2.08 2.20 2.56

O & M Cost (Rs./Kwh) 4.64 6.96 5.69

Total Cost of Energy Generated (Rs./Kwh) 6.72 9.16 8.25

Present Major Technical Problems

Acute shortage of cooling water, as river Indus changes its course and moves forward about 0I k.M.

• Efforts are being made to deepen & dig out a channel to connect the intake pound with river.

• Efforts for new site selection of Pump House

Deterioration of Main cooling Towers• Rehabilitation of Stacks & structure • Replacement of Cooling Fan & cables

Present Major Technical Problems

Coal Handling System• Rehabilitation of coal Bunkers.• Rehabilitation of gear boxes, Coal Crushers &

Limestone crushers, Pocking Impeller & Emergency reciprocating feeders

• Rehabilitation of Coal Cranes & Limestone Cranes.• Modification & revival of Dust collectors, Iron

removersBoiler

• Installation of Double Scraper chain for Boiler 1, 2 & 3.

• Rehabilitation of bags House; doors, ducts & filter bags

• Rehabilitation of Coal Feeders, Spent bed Coolers for Boiler

• Rehabilitation of Coal Spreader for Boiler 2&3.• Rehabilitation of insulation & cladding, Expansion

joints.• Modification of re-injection system

Sr. No. SCOPE WORK PLAN ESTIMATED AOMOUNT IN MILLION Rs.

01. Boilers & Related Auxiliary Equipments

Due to deteriorating condition of boilers. Complete rehabilitation alongwith related auxiliary equipments is necessary. Overall reliability / availability of systems improve and efficiency also improved.

560.00

02 Turbo Generator and Related Auxiliary Equipments

Turbine & Generator need overhauling along with supervisory equipments Efficiency will be improved.

253.00

REFURBISHMENT PLAN

Sr. No.SCOPE OF

REHIBILITATIONWORK

JUSTIFICATION OF WORKESTIMATED

AOMOUNT IN MILLION Rs.

03 Fuel Handling Systems

Due to deteriorating conditions of Fuel Handling Systems. Related auxiliary equipments needs to be replaced / rehabilitate .Overall reliability / availability of systems improve and efficiency also improved.

330.00

04 Switch Gears and Switch Yard Equipments

Existing position of most of the equipments is worst and requires renovation & replacement. Overall reliability / availability of systems improve and efficiency also improved.

148.00

REFURBISHMENT PLAN

Sr. No.SCOPE OF

REHIBILITATIONWORK

JUSTIFICATION OF WORK

ESTIMATED AOMOUNT IN MILLION

Rs.

05. Civil Works. Rehabilitation of existing acid resistance tiles and fiber glass treatment at dami plant, repair of coal bunker and coal shed.

25.00

06. Water Intake System

The river has changed the direction and flowing away from the pump house. The whole area is silt Re-location of existing pump house complete study and commissioning including replacement of pipe line and renovation of power supply system becomes evident

149.50

REFURBISHMENT PLAN

Sr. No.SCOPE OF

REHIBILITATIONWORK

JUSTIFICATION OF WORK

ESTIMATED AOMOUNT IN MILLION

Rs.

07 Chiller Plant Old plant was out of order since long and could no be made serviceable due to lack of spears being absolute model. Improve the efficiency and working environment.

27.00

08 Laboratory Equipments.

All equipments are needed for efficiency improvement and quality control of stem water, fuel and environment monitoring.

17.00

REFURBISHMENT PLAN

DETAIL OF PROFIT & LOSS

[Gwh]

Net Electrical Output 109 Revenue [Million Rs]

EPP 332.932 CPP 246.847

Total Energy Sales 579.779

Other Revenue 6.000

Total Revenue 585.779 Expenditure

Fuel (Coal) 428.704

Variable O&M 20.477 Total EPP Cost 449.181

Fixed O&M Cost 725.101 OTHERSDepreciation 262.448 Interest 3.550

Sub Total 265.998 TOTAL CPP Cost 991.099

1,440.280

(854.501)

CPP COST

EPP COST

GRAND TOTAL EPP/CPP

Net Profit/(Loss)

Lakhra Power Generation Company Limited

Lakhra Power Generation Co., LtdCash flow for the FY 2010-11Cash Inflow (Mln Rs)

EPP/CPP Sale including GST 636.38

Misc Income 6.00

Total Inflow 642.38

Cash Out Flow Coal i.c. GST 458.416 Variable O&M Cost 20.477 Civil Works Maint: (P.House) 12.03 Power Plant Maintenance 296.97 General Plant Maintenance 5.24 Civil Physical Property Maint: 17.76 Insurance of Power Station 4.00 Vehicle Running Cost 37.44 Pay & allow ances 180.63 Employees Benefits 49.17 Employees Benefits Retiring 15.00 Admn Cost 44.83 NEPRA Fee 5.08 Authority's Overhead 10.00 DSL-Interest & Principal 4.65 Capital Expenditure 40.75 Employees Long Term Loan 5.00

Grand Total Out flow 1,207.44

Net Cash Surplus/(Deficit) (565.06)

Thank you

23