Agreement to import 1,000MW from Iran inked

Published: June 1, 2012

Iran will fund 70% of the project, Pakistan 30%.

LAHORE: The spokesman for the National Transmission and Dispatch Company Limited (NTDCL) has said that the Government of Pakistan has signed an agreement with Iran to import 1,000 megawatts of electricity. The agreement was signed by a delegation of Pakistan, headed by NTDCL Managing Director Rasul Khan Mahsud and Iran’s deputy Minister for Energy Muhammad Behzad.

According to the agreement, 70% of the funding for the project will be provided by the Iranian Government, whereas 30% will be arranged by the Government of Pakistan.

The spokesman revealed that the project will be completed in three years. As per negotiations between the delegations, the rate of electricity has been finalised at eight cents per unit; whereas in case of a rise in international oil prices a maximum of 11 cents will be charged.

The spokesman further said that the signing of the agreement is the outcome of Iranian President Mahmoud Ahmedinajad`s visit to Pakistan, during which President Asif Ali Zardari and Prime Minister Yousaf Raza Gilani had shown interest in importing power from Iran to mitigate the prevailing energy crisis in the country.

Published in The Express Tribune, June 1st, 2012.

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Reader Comments (17)

  • Nasir
    Jun 1, 2012 - 2:47AM

    I hear so many stories like this and in 3 years we will still be only talking about it. All our leaders like to talk but never deliver.

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  • a&a
    Jun 1, 2012 - 3:45AM

    at last some good news . . . ????

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  • kapt slim
    Jun 1, 2012 - 8:08AM

    I wonder and wonder. I have serious doubts about the competence level of our nation to deal with energy crisis. It has been 4 years now and still the issue is unresolved. If we look at the under construction projects, the picture is pretty much blur as no project would be ready before 2016. Oh Dear Lord … We need a miracle ….

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  • Jun 1, 2012 - 8:16AM

    You guys know what sanctions are don’t you?

    US has sanctioned any financial institution which deals with Iranian Oil industry. Considering electricity is going to be produced from this very same Oil, there is a good chance that the financial institutions involved in this project will be put under sanctions. No financial player will come forward.

    Even Chinese and Indian Oil companies are backing off from having to do anything with Iranian oil industry. So, Pakistan has the economic foundations to challenge the sole Super Power on Earth?

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  • Hamid Khan
    Jun 1, 2012 - 9:00AM

    Where is tranmsision system to import 1000 MW. Building transmission line passing through Baluchistan could take years. You need at least two 500 KV circuit. Where is will be connected to Grid. You have to build transmission station,. Being in this business for last forty years I know it take make years to study and come up with a viable project What will people do in the mean time. I thought the issue is that PEPCO cant recover revenue and pay the generators. If they cant pay them how will they Iran for import power from them. Is this is an eye wash or what

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  • Jun 1, 2012 - 9:40AM

    Every idea looks plausible on paper!

    This idea is going to take years, if implemented. And in those years, gvernments would change. And then who shall take the responsibility of “previous govt’s projects”?

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  • Shahrukh kazmi
    Jun 1, 2012 - 10:03AM

    yaar please i am not in class two.

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  • Kaleem
    Jun 1, 2012 - 10:24AM

    Ah well, 8 cents is 7.44 rupees as per dollar rate today, where were all those stories claiming CHEAP electricity from Iran?Recommend

  • Arijit Sharma
    Jun 1, 2012 - 11:58AM

    Iran has always maintained that its nuclear program is for the express purpose of handling a foreseeable energy shortage. So, if Iran has surplus energy – what is the need for a nuclear program ?

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  • Ahmer Ali
    Jun 1, 2012 - 1:49PM

    Just control USA because there is any other country to interfere in your this agreement except USA.

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  • Ahmer Ali
    Jun 1, 2012 - 2:00PM

    Just control USA because there is no any other country of the world which will interfere except USA this deal and agreement between Iran-Pakistan.

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  • Freedom Seeker
    Jun 1, 2012 - 2:34PM

    Well Done after all this mess. We learn slow and with stick.

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  • antanu
    Jun 1, 2012 - 3:27PM

    @bruteforce

    At least a small and weak nation has guts to rise against US.atleast they are not acting as if slave to US.Recommend

  • Hassan
    Jun 1, 2012 - 5:17PM

    @BruteForce

    There is only one sole super power and he is the one we will all return to. Lets not forget Allah.

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  • Mirza
    Jun 1, 2012 - 8:46PM

    Pakistan should do what is in its best interest not because of any pressure. It is always better to import from the neighbors than from far away. However, the deep state is not going to allow the govt to have open trade with India as long as possible.

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  • Kanwal
    Jun 2, 2012 - 12:31AM

    @Arijit Sharma
    Thats absurd. Any country given the chance to make surplus energy for the purpose of trading it to neighbours, would jump on the chance. And why not? May be this is their need actually? Its fair. This nation has nt attacked any other country in the last 200 years. Get a life.

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  • Shah ji
    Jun 9, 2012 - 4:28AM

    @Arijit Sharma: Fossil energy is always a limited stock. You can’t rely on for say a 1,000 years. You have to diversify. Iran is taking the initiative to do just that before its Arab counterparts catch on. And last I checked, Saudi Arabia was importing Nuclear Power Plant designs from China.

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