KARACHI: K-Electric (KE) is working jointly with a Chinese firm, Harbin Electric International (HEI) to set up a 660MW Green Field Coal-Fired Power Plant.

The company Secretary Syed Moonis Abdullah Alvi affirmed: “It will be an achievement in itself as it is going to be the first such project in the history of Pakistan.”

He stated that KE had signed a memorandum of understanding with the Chinese electrical giant in Harbin, China for the co-development of the 660MW green field coal-fired power project. It would be developed, constructed and operated on the basis of Built-Operate-Transfer (BOT).

The coal-fired power plant is projected to enhance KE’s generation capacity by 660MW “in a short span of time,” the company secretary stated and added that the KE and HEI would also jointly work towards the financial close of the project.

“This nexus between KE and HEI will not only open doors for new foreign investment in the country but will actually pioneer KE in delivering the Green Field Coal-Fired Plant,” the company official said and added that the plant would be operated and maintained by the HEI for a limited time and would then be transferred to KE.

The news was greeted warmly at the stock exchange, where the share in K-Electric recorded the highest volume of 37 million shares in trading on Thursday with the price of stock recording gain of 51 paisa to Rs6.72.

Yet, people in the industry said that the information was preliminary and more might be conveyed in time. They said that it was essential to know the cost of the project; contribution of the two parties; the debt/equity ratio and finally are the KE financials strong enough to find the wherewithal?