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May 20, 2009: KESC is set to aggressively deliver on its commitment to improve electricity supply for the people of Karachi, by increasing its internal generation capacity with the addition of a 560 Mw power plant, obtained from GE. The contract for a 560 MW of dual-fired combined cycle plant at Bin Qasim was initially signed in June 2008. Following new management’s takeover at KESC, the price was successfully re-negotiated bringing the original prices down by US$15 million. The reduced package price, of US $378 million will produce power at US$ 675 per MW. This makes the project one of the most economical combined-cycle projects in Pakistan, compared to projects being constructed using the same technology and projecting prices of US$ 800 or more per MW. Keeping in mind the need for dependable solutions for Karachi’s electricity grid, KESC has selected the proven technology of GE’s 9E Frame Gas Turbines, manufactured in France, as well as including a Steam Turbine to provide a Combined Cycle Power Plant. M/s Harbin of China has been selected to perform Project Works and Plant Commissioning, with an advance payment of USD 56.6 million. The project is to be built under a fixed price formula, and will follow World Bank guidelines to ensure environmentally-friendly guidelines are met. The plant is to be completed in four (4) phases, with the first GT expected to be online within 24 months (May 2011), and the second and third GTs to be commissioned in June and July 2011 respectively. The Steam Turbine will be commissioned by January 2012, thereby achieving total capacity of approximately 500 MW connected to the 220 kV network through GIS. KESC CEO Naveed Ismail has said, “We are moving as quickly as possible to install additional power generation capacity to meet the critical needs of Karachi’s business and residential sectors. KESC has selected GE technology because they have a proven track record in Pakistan and the technology can be installed very quickly. Furthermore, GE also has the manufacturing capacity to meet our needs for such a large number of engines in a very short period of time. We are confident that this project will go a long way towards helping KESC improve grid service to support economic growth in the city, which is of vital interest to the entire country.” The addition of this power project will take KESC a key step closer towards self reliance in power generation to meet Karachi’s long-term needs. In addition to reducing load-shedding as an immediate priority, KESC’s efforts are aimed at providing the best value for its shareholder and consumer money. KESC’s management is fully committed to change the face of the company through positive results. This current addition is a culmination of an extensive effort to provide power solutions that are most competitive on a per Megawatt basis. ------------------------------------------------------------------------------------------------------- For Further Details, please contact: KESC Corporate Communication Syed Faraz Ahmed, Media Manager at 0301 828 6193 Email: cc@kesc.com.pk