THE constant changes being made to the bouquet of power projects under the CPEC umbrella shows the weak state of planning that went into the whole affair. Latest reports suggest that two more projects may have been knocked off the list due to reservations about the use of imported coal. In one case, a 660MW initiative has been disallowed completely, and in another, the project sponsors have been told to arrange foreign financing and shift to local coal, meaning their timeline has been disrupted, putting a question mark on the entire project. At the same time, the government is rushing to commission a new 1200MW plant to run on imported LNG.

The changes come after similar midcourse alterations to the terms in the solar tariff, as well as the collapse of the Salt Range coal-fired power project. Given these frequent changes, it is becoming clear that foresight and planning were missing from the launch of one of the biggest series of energy-sector investments ever in this country’s history. This is one reason why calls for greater transparency in CPEC are so pertinent. Clearly, the impact of imported coal on the external account of the country ought to have been studied long before the projects were approved, granted an upfront tariff, and issued letters of support and generation licences. The change of mind came at the Private Power and Infrastructure Board sometime in October. This is the same body that approved the projects and granted them letters of support earlier in the year. Perhaps such a strong emphasis on coal-fired power plants was never a good idea to start off with, due to their impact on the external account as well as the environment. But the way the government is changing its mind in the middle of the project timelines sends a signal to investors that Pakistan remains a high-risk country, and dampens investor enthusiasm further.

Published in Dawn, November 7th, 2016