Rs1.12tr Chashma nuclear power plant to be completed in 81 months

• Financing structure for plant includes 19% equity and 81% debt.
• Cost of the Rs1,125bn of project includes EPC cost of Rs965.8bn
• Return on Equity has been sought at 14.50% per annum.

The National Electric Power Regulatory Authority (Nepra) has accepted the Pakistan Atomic Energy Commission's (PAEC) petition seeking approval for a levelised tariff of Rs16.7354 (5.97 cents) per unit for a 40-year period for the Chashma Nuclear Power Plant-5 (C-5), The News reported on Monday.

Under the petition, the C-5 is projected to be completed within 81 months at an estimated cost of Rs1,124.842 billion. The financing structure for the plant, which has a generation capacity of 1,200 MW, includes 19% equity and 81% debt.

The PAEC petition sought the tariff of Rs19.8268 per unit for 1-12 years and Rs9.6320 per unit for 13-40 years and this is how the levelised tariff would be at Rs16.7354 per unit.

The cost of the Rs1,125 billion of the project includes EPC cost of Rs965.835 billion, non-EPC Rs69.469 billion and IDC (interest during cost) Rs89.538 billion.

The Return on Equity has been sought at 14.50% per annum. The redemption of equity has been assumed in 28 years from 13-40. The debt repayment period would be of 12 years with a grace period of 8 years. The interest rate on the 81% financing that China is to provide stands at 3%. The loan will be provided at an exchange rate of Rs280 against one US dollar, Rs38.50 against one RMB, and RMB7.27 against one US dollar. The C-5 will have a 90% plant factor.

PAEC in its petition asked for the two-part tariff structure comprising Energy Purchase Price (variable) and Capacity Purchase Price (fixed) on take or pay basis. The overnight capital cost has been estimated at $3081 per kW.

The country has two nuclear power plant (NPP) sites containing six operating units, constituting a total electricity generation capacity of 3,262 MW.

One site is in the Punjab province, near the city of Mianwali, called the Chashma Nuclear Power Generating Station (CNPGS) and houses four units C-1, C-2, C-3 and C-4, all based on a 300 MW pressurised water reactor (PWR) design.

The second site is near the city of Karachi in the Sindh province, and is called the Karachi Nuclear Power Generating Station (KNPGS). Two identical plants at KNPGS, KANUPP-2 and KANUPP-3, are based on a 1,100 MW advanced PWR design.

A 137 MW pressurised heavy water reactor (PHWR) design unit named KANUPP-1 at KNPGS is being decommissioned, after completing 50 years of operation.