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Nandipur Power Project
Nandipur Power Project is a 425 MW (with potential of 1,000 MW) combined cycle thermal power plant situated at Nandipur near Gujranwala in the Punjab province of Pakistan. Being constructed by the China Dongfang Electric Corporation, the project was completed in March 2015.〔http://www.thenews.com.pk/Todays-News-13-32683-China-to-complete-Nandipur-Power-project-by-end-March-2015〕 The estimated cost of the project was Rs. 23 billion ($574 million) when it was announced, which according to the Government (PMLN), escalated to Rs. 57.38 billion due to delay and negligence of the previous (PPP) Government.〔 However it is claimed by some that the actual cost reached up to Rs. 84 billion.〔http://www.dailytimes.com.pk/national/11-Feb-2015/malaysian-firm-to-run-425mw-nandipur-power-plant〕
== History ==
In January 2008, Pakistan Electric Power Company (PEPCO) signed a Rs. 23 billion ($329 million) contract with Dong Fang Electric Corporation of China to construct the Nandipur Power Project and paid it a 10 per cent down payment. By mid-2010, much of the work at this power project was complete and it was expected be finished on schedule in April 2011. However, the project suffered delays as the summary, sent by the Ministry of Water and Power for legal opinion of the Ministry of Law & Justice, remained pending with the latter for two years from March 2010 to March 2012. As a result, machinery worth $85 million remained stuck at the Karachi Port for over two years. In September 2012, the president of Dongfang Electric Corporation Zhang Guorong terminated the contract for the construction of the Nandipur power project, saying his company had suffered colossal losses because machinery worth $85 million had been awaiting clearance at the Karachi Port. The company also demanded $40 million as compensation for losses suffered because of depreciation and damages on machinery stranded at the Karachi Port for the two years.
In June 2013, Pakistan's Ministry of Water and Power started renegotiating the contract with Dongfang Electric Corporation to resume work on the Nandipur Power Project.〔 After days of negotiations, the firm agreed to resume work on the power station. On July 8, 2013 engineers of Dongfang Electric Corporation arrived in Karachi to inspect the machinery lying at the Karachi Port and secure its release. Later, work on the Project was restarted.
Prime Minister Nawaz Sharif inaugurated the first turbine of the project on 31 May 2014.〔http://tribune.com.pk/story/715730/pm-inaugurates-1st-turbine-of-nandipur-power-project/〕 But the plant remained operational for only five days after the inauguration and had to be shutdown due to mismanagement and use of inappropriate fuel.〔http://www.dawn.com/news/1121195〕 Later in July 2015 it was reported that the plant was once again functional and producing the contractual output of 425MW.〔http://dunyanews.tv/index.php/en/Pakistan/288042-Nandipur-Power-Plant-fully-functional-generating-〕
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