ISLAMABAD: A Chinese group will set up at Gadani two coal power plants, each of 1,320MW capacity, and invest around $2 billion in the project.

A memorandum of understanding was signed to this effect on Wednesday between the China Machinery Engineering Corporation (CMEC) and the Private Power and Infrastructure Board (PPIB). CMEC General Manager Li Kan and N.A. Zuberi of PPIB signed the agreement on behalf of the two sides. Federal Minister for Water and Power Khawaja Mohammad Asif and Minister of State Abid Sher Ali and other officials were present on the occasion.

Khwaja Asif said several MoUs had been signed with foreign investors for setting up 10 projects, with a cumulative capacity of 6,600MW, at Gadani town in Balochistan.

Completion of these projects would be a big achievement of the government as these would play an important role in addressing the problem of loadshedding, he said.

Over the past one year foreign investment has increased, reflecting investors’ confidence in policies pursued by the government, he said.

Welcoming the Chinese group to the country’s power sector, the minister lauded Chinese contribution to Pakistan’s efforts for strengthening economy.

He said that 2,250MW would be added to the system within two months and pointed out that there had been no unscheduled loadshedding in the country for the past several months.

However, he conceded, six to eight hours of loadshedding was being carried out in different cities and rural areas.

He stressed the need for energy conservation and asked consumers to pay their bills timely and help the government counter the power theft.

He said relief would be provided to areas where bills were paid in time. All those feeders having line losses because of power theft would face increased loadshedding and transformers in such areas would be removed, he added.