Monthly Progress Report July 2012 Repair and Rehabilitation of Muzaffargarh Thermal Power Station

(AEAI) under the USAID Energy Policy Program, has made significant progress in July 2012. The project aims to restore 475 MW of capacity at the Muzaffargarh TPS, with a total estimated cost of $15,778,195. As of July 2012, a total of $7,648,888 has been disbursed to the GENCO, with 100% reimbursement from USAID for claims submitted on the basis of the old FARA. The rehabilitation of boiler super heater tubes at units 1, 2, and 3 has been completed, restoring 230 MW of capacity. Additionally, the replacement of air pre-heater elements (intermediate and cold end) at unit 4 has added another 50 MW of capacity. The project has also made progress in the procurement of various equipment, including special cooling water treatment, fuel oil additive, and electric motors for C.T. Fan and GRC fan. However, some delays were anticipated in the procurement process due to the GENCO's weak financial standing and inability to pay on time through a letter of credit. EPP staff worked with USAID and the GENCO to redefine the reimbursement process and revise the FARA to facilitate timely payments. The completion date for the project has been revised to June 30, 2013, with a new Activity Agreement and implementation letter signed in April. The project has also made significant progress in the training and software/hardware cost for the CMMS and off-line efficiency monitoring system, with a total amount of $1,000,000 allocated for this purpose. As of July 31, 2012, the project has achieved the following milestones: - Material received at site: 7 items, totaling $5,392,883 - LC opened and material is awaited: 6 items, totaling $3,551,838 - PO issued and LC is awaited: 7 items, totaling $2,479,320 - Performance bond received and PO is awaited: 1 item, totaling $62,835 - Tender/re-tender opened and in process: 7 items, totaling $2,100,180 - Tender/re-tender awaited: 6 items, totaling $2,231,140 The project has made significant progress in restoring capacity at the Muzaffargarh TPS, with a total of $7,648,888 disbursed to the GENCO as of July 2012. The project is expected to be completed by June 30, 2013, with a total estimated cost of $15,778,195.