CDWP clears 6,600 MW Pakistan Park Project costing Rs144.6b

Published: July 17, 2014
SHARES
Email
China will provide debt to cover 85% of the project cost, while the rest of the finances would be arranged by the government of Pakistan, according to a handout issued by the Ministry of Planning. PHOTO: EXPRESS/ FILE

China will provide debt to cover 85% of the project cost, while the rest of the finances would be arranged by the government of Pakistan, according to a handout issued by the Ministry of Planning. PHOTO: EXPRESS/ FILE

ISLAMABAD: The government on Thursday cleared the construction of infrastructure for a 6,600 megawatt (MW) Pakistan Power Park Project at Gadani which will cost approximately Rs144.6 billion, paving the way for signing power purchase agreements with Chinese investors next month.

The project was cleared by the Central Development Working Party (CDWP) –the body that has the mandate to approve projects costing up to Rs3 billion. It also has the mandate to recommend projects which cost over Rs3 billion to the Executive Committee of National Economic Council (ECNEC).

The sanction was given ahead of the Energy Working Group of the China-Pakistan Economic Corridor (CPEC) meetings, which are scheduled for August. During the upcoming working group meetings, Pakistan and China are expected to sign power purchase agreements.

China will provide debt to cover 85% of the project cost, while the rest of the finances would be arranged by the government of Pakistan, according to a handout issued by the Ministry of Planning.

The project is aimed at developing infrastructure facilities at the Pakistan Power Park at Gadani for establishing 10,660 MW of imported coal-fired power generation plants.

The project will help in developing the infrastructure of the Pakistan Power Park at Gadani by installing a coal supply system, jetty head, cooling water facilities and several other installations. The project was recommended for consideration of the ECNEC.

The CDWP, headed by Federal Minister for Planning and Development Ahsan Iqbal, cleared six projects costing Rs177.4 billion in total, including a foreign exchange component of Rs126.6 billion.

It also sanctioned Greater Karachi Water Supply Scheme K-IV (Sindh), Kala Dhaka Area Development Project (Khyber Pakhtunkhwa), Khyber Area Development Project (Khyber Pakhtunkhwa),construction of 50-bedded hospital – including hostels and other equipment at Pasni (Balochistan) and Red Chilies Processing Centre (Sindh).

While discussing the Greater Karachi Water Supply Scheme (K-IV) (Phase-I), the planning minister said that the financial share of the federal government in the project has been raised from one-third to half, in compliance of Prime Minister Nawaz Sharif’s commitment during his recent visit to Karachi.

The minister said that some people blamed the federal government of interfering in provincial matters. He added that federal government interference in a such a project was done so in a positive manner.

Iqbal was referring to a recent statement by former President Asif Ali Zardari, who had accused Prime Minister Nawaz Sharif of behaving like an emperor.

The CDWP sought assurance from provincial authorities regarding the availability of water in the project, and directed authorities to provide clean drinking water to the people of Karachi on an urgent basis.

The minister expressed his reservations over the waste management system in Karachi, saying that the solid waste of Karachi was dumped into the sea which was creating many environmental and health hazards for people.

The forum approved the project — subject to the condition that the cost escalation in the project in any case will be borne by the provincial government.

Iqbal also stressed upon the use of funds in an efficient manner and to ensure transparency at all stages from the authorities.

The conditionally approved Kala Dhaka Area Development Project would cost Rs1.7 billion, and Khyber Area Development Project has been estimated to be completed at Rs1.3 billion.

The project is aimed at supporting rural transformation as well as promoting legitimate agricultural activities and enhancing the mobility through the construction of roads in select areas of Khyber Pakhtunkhwa.

The CDWP also approved the construction of 50-bedded hospital in the Pasni area of Balochistan at a cost of Rs441 million.

The Pakistan Muslim League-Nawaz (PML-N) government also approved the Red Chilies Processing Centre (RCPC) project of the Industries and Production Division – costing Rs244.7 million. The project had been deferred during the Pakistan Peoples Party government after getting criticism for using sacred resources for the processing centre.

The CDWP also approved the Balochistan Nutrition Program for Mothers and Children costing Rs1.5 billion.

Facebook Conversations

Reader Comments (9)

  • Insider
    Jul 17, 2014 - 10:21PM

    and Metro bus of Lahore cost around Rs. 70b !!!! 144 billion does not sound big if you aggregate such stupid projects of this government. Long time to go Pakistan :(

    Recommend

  • Shuaib Bhat
    Jul 17, 2014 - 10:34PM

    @Insider:
    It isn’t Nawaz Sharif’s fault the masses think roads and metro busses are the end all be all. Had the public had more sense, NS’s policies would be different. Metro bus gets votes and so he does it. Vote based on other things and he’ll start doing other things.

    Recommend

  • Zain
    Jul 17, 2014 - 10:44PM

    @Insider: the total cost of the Green Line BRT was 29.8 Billion. Cost doesn’t get inflated like your inuilaabi zeal.

    Recommend

  • Saleem
    Jul 17, 2014 - 11:12PM

    @Insider:

    On metrobus, there are more than 140,000 travelers everyday. It is people like you who are naive to understand that their livelihood depends on it. They don’t live in 300 canals bungalows – they need cheap transportation. And unless you as well as others can suggest cheaper alternative to these people please give your criticism to yourself.

    Recommend

  • kala_bacha
    Jul 18, 2014 - 12:45AM

    @Insider: ‘
    you have the point. For rest of them, think outside the united state of raiwind lahore.

    Recommend

  • Parvez
    Jul 18, 2014 - 1:15AM

    More loot and plunder…………our leaders greed knows no bounds.

    Recommend

  • Jul 18, 2014 - 6:53AM

    6600MW of coal fired power plant at US $1.5 billion is really a good deal. Go for it.

    Recommend

  • amin khan
    Aug 2, 2014 - 11:08AM

    6600 MW -good deal, but why not Thar coal instead of imported coal ? Is Thar coal deposits are small ???, we should keep both options.

    Recommend

  • Aug 2, 2014 - 11:42AM

    [email protected] khan:
    Thar coal quality is so so. Total heat produced by one ton of Thar coal is much less than one ton of imported coal. Also local coal has high sulphur content. The chimney, with local coal burning in furnace, spews out to much sulphur dioxide, nitric oxide and mercury. If super critical circularized fuel bed (CFB) boiler is used with sone 20% lime mixed with local coal sulphur dioxide exhaust can be reduced.

    Recommend

More in Pakistan