No interest: MoUs with Chinese company cancelled

ISLAMABAD:

Hope of using solar technology as alternative energy resource ended for the Punjab government as ZTE, a Chinese vendor, has shown zero interest in working towards the Memorandum of Understanding (MoUs) signed with Pakistan.

The MoUs would have meant an addition of 1,100 megawatts (MW), costing $1,650 million, reliable sources revealed. They added that the same vendor also signed another MoU for the Karachi Safe City Project of approximately $400 million but no move had been made yet.

According to details, the Punjab government signed two MOUs of 900MW and 200MW last year with ZTE. However, after no move was made by the company, the government was left with no choice except to cancel the MOUs, sources said. They added that the vendor’s lethargic attitude has derailed the government’s plan to overcome the ongoing energy crisis. The selection of ZTE for signing two MOUs leaves reservations over the selection criteria when the company was also involved in LED Light project installed at Dubai Chowk Allama Iqbal (DCAI) last year while severe discrepancies were found and almost 60% of lights malfunctioned within few months.

Published in The Express Tribune, October 21^st, 2014.

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