Chinese firm gets nod for setting up power plant

Published: May 31, 2017


ISLAMABAD: A Chinese company has got initial approval for setting up a 300-megawatt imported coal-based power plant in Gwadar, which is part of the $57 billion China-Pakistan Economic Corridor (CPEC) comprising scores of energy and infrastructure projects.

The Private Power and Infrastructure Board (PPIB) has issued a Letter of Interest to China Communications Construction Company (CCCC) for developing the power project in the port city of Balochistan.

China to invest $50b to develop Indus River Cascade

In this regard, PPIB Managing Director Shah Jahan Mirza and CCCC Vice President Xu Jun signed a document.

Now, the company will seek tariff approval from the National Electric Power Regulatory Authority (Nepra) and start construction work after achieving financial close. CPEC’s Joint Cooperation Committee and the PPIB board have already approved the power project for further processing.

Gwadar is blessed with a warm-water, deep-sea port situated on the Arabian Sea. The port features prominently in the CPEC framework and is considered a crucial link between the ambitious One Belt, One Road and Maritime Silk Road projects. Economic activities foreseen at Gwadar in the near future will require a reliable power supply.

With the addition of 300MW Gwadar project, the number of power generation projects being processed by the PPIB has increased to nine coal-based projects of 8,220MW and three hydroelectric power projects of 2,714MW under CPEC.

Among CPEC projects, Prime Minister Nawaz Sharif last week inaugurated the first unit (660MW) of the 1,320MW coal-fired power project in Sahiwal. Its second unit of the same 660MW is expected to come on stream by the end of December this year.

PPIB works as a leading institution of the government for bringing additional electricity generating capacity in order to improve the energy mix through a blend of imported and domestic fuel/resources for the upcoming independent power plants (IPPs).

A number of hydel and local coal-based power projects are at different stages of development to cater to electricity needs of the country over the long run, while imported coal-based projects are being processed as a reliable base load solution.

Pakistan’s repayments on CPEC to peak at $5b in 2022: chief economist

The government has repeatedly pledged that it will end load-shedding next year with the addition of 10,000MW power projects and more later.

Published in The Express Tribune, May 31st, 2017.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.

Facebook Conversations

Reader Comments (8)

  • Jami
    May 31, 2017 - 9:49AM

    Its funny, China itself is getting rid of coal plants in China while setting up coal plants in Pakistan.Recommend

  • Parvez
    May 31, 2017 - 11:48AM

    The question is ….Is the power shortage real or is it created in order to set up new plants ? We know that over the last 10 + years the game has been ‘ create a shortage and then profit from it ‘. there is a school of thought that says we have the capacity to bridge the shortfall…..but it is being ignored although if used, its a cheaper option.Recommend

  • JKhan
    May 31, 2017 - 12:07PM

    It is their way of getting rid of their garage.Recommend

  • nikhil
    May 31, 2017 - 12:14PM

    China is transferring those same coal plants to PakistanRecommend

  • hs
    May 31, 2017 - 12:47PM

    It is news for me that Pakistan is not manufacturing even busesRecommend

  • k
    May 31, 2017 - 12:57PM

    do Pakistani knows that china is closing down its coal fired power-plants? and India too systematically shutting down coal fired? it will add a huge problem for healthcare of poor masses. Go for solar & windRecommend

  • Sawaiz
    May 31, 2017 - 1:16PM

    China is planning to build around 900 plants of the upgraded technology!
    Japan is planning to build 50 coal power plants!

    i don’t know how these keyboard warrior’s get there wrong information from! Recommend

  • wiserneighbour
    May 31, 2017 - 3:21PM

    China is smart.While they are closing down their coal powered power plants,they are moving the dismantled ones to Pakistan.Pakistani health is not their concerns.Great going.Recommend

More in Business