50MW IPP plant proposed for Gwadar Port
The government owed Rs91.2 billion to the Port Qasim power plant that has created liquidity problems for the firm. Photo: File
After the fresh hike in petrol prices, a proposal to install a 50-megawatt independent power plant, in collaboration with Chinese power producers in Gwadar, is going to be floated in a crucial meeting, which is likely to be held this week in Islamabad between the government and Chinese companies.
Electricity shortage in Gwadar that remained atop during Prime Minister Shehbaz Sharif’s visit to the port city has finally been listed as the utmost priority among other challenges to be pondered over during the course of Gwadar-centric meeting, sources in the Ministry of Planning, Development and Special Initiatives revealed.
Long- and short-term proposals from the PM’s side and from China Overseas Port Holding Company (COPHC), which will also represent other Chinese enterprises, have been laid down and the meeting will green-light the prompt course of action to fix electricity issues, sources said.
For long, Chinese companies have been overstressed by overpriced power production by 8.5MW generators in Gwadar Free Zone (GFZ) in the backdrop of unavailability of power supply from the government.
Now, on the heels of inflated petrol prices, the cost of electricity has gone up to the roof, putting extreme burden on corporate finance.
“Before petrol prices surged, Gwadar Port used to purchase petrol at a cost of Rs20.3 million monthly. Chinese companies in GFZ were charged Rs49 per unit accordingly, which was very high,” a COPHC official said.
“In a new scenario, when Rs60 has been increased in petrol prices, the monthly purchase cost for Gwadar companies has soared to Rs25.5 million. It is more than 25% rise.”
COPHC has proposed that if the government allows relevant terms and conditions conferred on independent power producers (IPPs), COPHC in collaboration with Chinese power producers can generate 50MW sufficiently.
“Chinese IPPs’ power cost will be more affordable. This will not only be a shot in the arm of the already functional enterprises, but will also embolden new investors to operate in Gwadar Free Zone with a peaceful mind,” he added.
THE ARTICLE ORIGINALLY APPEARED ON THE CHINA ECONOMIC NET
Published in The Express Tribune, June 7th, 2022.
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