Finding solutions: Four coal-based power plants planned in Gadani

Punjab govt signs a memorandum of understanding with Chinese firm for electricity generation.

Abdul Manan July 28, 2013
Punjab govt signs a memorandum of understanding with Chinese firm for electricity generation. PHOTO: FILE


The Punjab government has signed a memorandum of understanding (MoU) with a private Chinese company to generate 2,400 megawatts (MW) electricity in Pakistan over the next two to three years.

The signing ceremony took place in Model Town where Punjab energy secretary and China Power International Holding Limited (CPI) vice president Wang Zhiying signed the MoU.

Briefing the media, Punjab Chief Minister Shahbaz Sharif said that the MoU will enable the establishment of four coal-based power plants, each capable of producing 600MW in Gadani, a coastal town in Lasbela district of Balochistan.

“The coal will be imported at Gadani and the 2,400MW of electricity will be shifted to the National Grid Station for distribution,” the chief minister said, without disclosing where the coal would be imported from.

The chief minister further added that the first two plants, that will generate 1,200MW, will be finalised in two years, including all conditions of the contract, while next two plants will be completed in 48 months. He said that the Punjab government had a little share in the investment, but did not disclose how much the two parties were investing in the mega project.

However, a senior official of the Punjab government, on condition of anonymity, said that according to the MoU, $1.2 million per megawatt will be invested into mega project.

Shahbaz said that all issues related to this project would be dealt according to the Constitution of Pakistan. When asked whether the Balochistan government was onboard in this project, the chief minister remarked, “Of course, they have been taken onboard, the Balochistan government should be happy that the Chinese and Punjab governments are investing in the province.”

CPI vice president Wang told reporters that the company will follow the terms and conditions of the MoU and the contract.

Published in The Express Tribune, July 28th, 2013.

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