Pakistan, China ink agreement for coal project

Published: June 10, 2016
The construction of the jetty is expected to be completed by September 2018 PHOTO: FILE

The construction of the jetty is expected to be completed by September 2018 PHOTO: FILE

ISLAMABAD: Pakistan and Chinese companies have inked an agreement for the construction of a coal-fired power plant jetty in Balochistan.

The project is being jointly financed by China Power International Holding Limited and Hub Power Company, and will be constructed by China Harbour Engineering Company, a subsidiary of China State Construction Engineering Corporation, reported Radio Pakistan.

Pakistan, China to build 350MW coal power plant in Karachi

The construction of the jetty is expected to be completed by September 2018, with an uploading requirement of 4.4 million tons of coal being produced annually.

Earlier, Pakistan and China have signed a contract to build a coal-fired power plant near Bin Qasim port in Karachi.

According to Radio Pakistan, the work on the plant having a capacity of 350MW will start in July which will be completed in 31 months.

The agreement was signed between China’s state-owned Harbin Electric Corporation and Pakistan Siddiqsons Energy.

Pakistan has so far used oil and gas to meet two-thirds of its electricity demand. However, time and again, the country was left at the mercy of price fluctuations in the international markets, especially as its own gas reserves depleted.

China, Pakistan ink $820m Thar coal agreement

The country now aims to add 8,100 megawatts (MW) through coal to its system – as much as 40% of its existing generation capacity. The obvious reason for using coal is energy economics.

Electricity produced using coal is cheaper than both oil and gas. While use of alternatives, like wind, solar and hydel has also been encouraged, coal-based power plants remain most viable for investors and national grid.

Published in The Express Tribune, June 10th, 2016.

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Reader Comments (2)

  • Buzzkill
    Jun 10, 2016 - 8:32AM

    The chinese are closing coal plants in their country due to the pollution they create & installing them in Pakistan. Great business deal for China, Chinese companies & Pakistani officials who will get kickbacks, very bad deal for Pakistani people.Recommend

  • tak
    Jun 11, 2016 - 2:13PM

    china is closing down 50 yr old coal plants and setting up new plants in china. the new ones are super efficent. its exactly like using a 50 yr old car vs a new one. both use petrol but look at the difference in smoke emissions. the world produces more than 50 percent of its electricity via coal which is the cheapest form of energy generation. fail to understand when will we learn. yes we need to produce cheap electricity like the world. once we become a developed nation yes then we can move to other cleaner alternates.Recommend

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