KE reaffirms commitment towards Karachi with USD 3 billion investment
K-Electric is committed towards Karachi and its growth with an investment of USD 3 billion over the next four years across the value chain. This was stated by Aamir Ghaziani, Chief Financial Officer of KE at the Corporate Analyst Briefing session held at the Pakistan Stock Exchange (PSX) today. Moonis Alvi, CEO K-Electric, and other members of the KE Leadership team were also present at the session.
The participants were also informed about the company’s financial performance and continued operational improvements including growth in sent-out, a significant reduction in T&D losses and sustained improvement in recovery levels. These improvements were underpinned by investments of more than USD 2.4 billion from FY 2009 to FY 2019, in all business verticals, including investments of over USD 960 million in the last three years alone.
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The CFO also said that to maintain this growth momentum, investments in infrastructure across the value chain are crucial including a 900 MW RLNG-based BQPS-III, a 700 MW coal-based IPP project, and Transmission and Distribution related projects. He further said that the company’s over USD 450 million TP-1000 project is on course for successful completion, adding about 1,000 MVAs of transmission capacity through seven grid stations and associated power lines and systems. Four grids and 22 power transformers have already been energized under the TP-1000 project.
This will be followed by a few other transmission projects, which will further improve network reliability and enhance KE’s transmission capacity. The power utility’s plans to enhance distribution capacity through the addition of 300 feeders and over 5,000 transformers were also discussed at the session, as well as planned investments in the reliability of KE’s network and loss reduction through the conversion of 15,000 PMTs to Aerial Bundled Cable (ABC) by 2023.
The participants were also briefed about Karachi’s peak power demand which has grown at a Compound Annual Growth Rate (CAGR) of 5.2% from FY 2012 to FY 2018, compared to 2.4% for the rest of the country, and how this bodes well for the future growth potential for KE, underpinned by its aggressive and strategic investment plan for the next four years. The session concluded with a note of thanks from the KE management to the participants.
