Chinese energy firm signs $3.5bn MoU

Updated Mar 19, 2014 10:58am
ISLAMABAD: Federal Minister for Water and Power Khawaja Asif witnesses the signing of MoU by President of Chinese company Gezouba, Chen Xiaohua, and MD Private Power and Infrastructure Board N.A. Zuberi on Tuesday.—APP
ISLAMABAD: Federal Minister for Water and Power Khawaja Asif witnesses the signing of MoU by President of Chinese company Gezouba, Chen Xiaohua, and MD Private Power and Infrastructure Board N.A. Zuberi on Tuesday.—APP

ISLAMABAD: Pakistan and Gezhouba Group of China on Tuesday signed a memorandum of understanding (MoU) for setting up of total of four coal-fired power projects of 2,640 megawatts at Gadani with an estimated investment of $3.5 billion.

Simultaneously, another Chinese firm State Grid Corporation of China (SGCC), held meetings with Pakistani authorities for construction of transmission line from proposed Gadani Power Park to the national grid when the government announces shortly a transmission policy for private investment.

Water and Power Minister Khawaja Mohammad Asif witnessed the MoU signing ceremony.

President Gezhouba Group Chen Xiano Hua and Managing Director Private Power and Infrastructure Board N A Zuberi signed the MoU.

Under the MoU, China Gezhouba would install three projects of 660mw each (1,980mw) based on imported coal at Gadani. The company earlier this year had signed another MoU for a 660mw coal power plant at the same park.

Kh Asif said that Prime Minister Nawaz Sharif’s idea to set up a 6,600mw Gadani Power Park project had generated a lot of interest among the international and domestic investors.

He said the prime minister’s recent visit to China and meetings with Chinese leadership had encouraged large Chinese firms to make substantial investments in various sectors of Pakistani economy including power sector.

He said the Gezhouba was already involved in the construction of 969mw Neelum-Jhelum Hydropower project as lead contractor in collaboration with China National Machinery Import and Export Corporation and was also the engineering, procurement and construction contractor in the 840mw Suki-Kinari Hydropower Project.

He said it showed that the largest firm from abroad had great confidence in business opportunities in the country and was satisfied with overall investment sentiment.

Gezhouba is one of the largest business groups in China having stakes in large dams like the Three Gorges, Shuibuya, Jinping I, and Longtan Dam. It has business operations in over 70 countries in Asia, the Middle East, Africa and America. In 2012, it was ranked 62nd among the top 225 international contractors and 42nd largest contractor by revenue in the world.

Mr Asif said the China Ghezouba Corporation would set up the Gadani projects on independent power producer (IPP) mode and would be responsible for arranging financing for the project in close coordination with Pakistan Power Park Management Company Ltd and PPIB.

He said that since these upcoming power plants would require transmission line facilities for transmitting power to the national grid and required funding, the government had decided to announce a fresh transmission line policy very soon for attracting investment through IPP mode. Under the policy, the power sector would be responsible for arranging funding and laying of the pipeline and get wheeling charges to be approved by the National Electric Power Regulatory Authority (Nepra).

He said the PPIB and State Grid Corporation of China (SGCC) also had a meeting on broad parameters of the transmission line as the SGCC had shown keen interest to invest and lay high and low voltage transmission lines.


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Comments (7) Closed


Azam Qadeer
Mar 19, 2014 11:12am

Dear Government Please work more on Hydro project so we get Three things Electric Cheaper Electric Water for Agriculture think about Pakistan do not listen to other. Others are to make money next 10 days if water is not stored our Agri will be gone and we are Agri base country

Nasir Iftikhar
Mar 19, 2014 07:32pm

Very well initiative as long as the project is being implemented and towards a funnel of power generation start-up. I hope indeed that India also can listen to the Pakistani drought dilemma, facilitating what they can do with water flowstreams within their borderline. Because of India, deplorably neighboring states e.g Bangladesh/Nepal, Srilanka & Pakistan have to suffer badly.

Real friendship to be offered, please!

sterry
Mar 19, 2014 10:59pm

@Azam Qadeer:A country where no one added any electricity to the grid for the over a decade is finally improving its electricity supply and you are complaining? At least this government is doing things to improve basic needs including electricity. I do not want hydro electric which will damage our environment.

Syed Ahmed
Mar 20, 2014 02:43am

Chinese Premier promises that

jr
Mar 20, 2014 03:30am

i think that, Pakistan, India, china, Bangladesh and others are ventilating their anger of being colonized by west on each other. its like boss yells at his employe, then the employe comes home and takes out his anger on his wife and/or children, then they do it to some one else. i hope u guys get the point which is move forward and become good neighbors, and save billions by not buying guns. guns are like apple iPods new and better come out every year and its waste of money.

haris
Mar 21, 2014 03:17pm

"based on imported coal ".

I thought Pakistan has coal-reserves that can lasts up to 500 years. Then importing coal from abroad? and by the way where are we importing from? China?

jk Mir
Mar 22, 2014 02:22am

How about passing a law to ban the following words from Pakistan:

  1. memorandum of understanding 2.Conspiracy 3.Hidden hand