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ISLAMABAD: A major Chinese firm has bowed out of a Punjab-based 330MW coal-based power project that was scheduled to start electricity production by end-2017.
The $590 million mine-mouth project was a key component of the high profile $46 billion China-Pakistan Economic Corridor (CPEC) launched last year by President Xi Jinping and Prime Minister Nawaz Sharif. A letter of interest (LoI) was issued to develop the project on local coal at Pind Daden Khan in Punjab’s Salt Range.
Sources told Dawn that China Machinery Engineering Corporation (CMEC) lost interest in the project because of issues relating to feasibility of producing enough energy for running a 330MW project and a tariff allowed by the National Electric Power Regulatory Authority (Nepra) that was lower than its expectations.
The company which is also a key contractor in the $4 billion 969MW Neelum-Jhelum Hydropower Project in Azad Jammu & Kashmir had been lobbying for 11.67 to 12.4 cents per unit tariff that was far higher than upfront tariffs for projects on Thar coal and imported coal. Nepra allowed a 30-year levelised tariff of 8.55 cents per unit.
Sami Rafi Siddiqui, spokesman for the Private Power and Infrastructure Board — the one-window organisation for private power projects — confirmed that the project was not moving. He said the PPIB had encashed $300,000 performance guarantee of the project sponsor for its failure to deliver on LoI conditions. He declined to give further details at this stage.
The government’s power policy required submission by the sponsor of a performance guarantee of $1,000 per megawatt for fulfillment of LoI conditions and $5,000 per MW performance guarantee for letter of support conditions. The guarantees are confiscated by the government in case of sponsor’s failure.
The project envisaged power generation along with coalmining project in the area of Choa Saden Shah with an average production of about 6,000 tons of local coal per day. The CMEC had promised to introduce semi-mechanised mining technique for the first time in the region with an investment of $200 million.
Published in Dawn, May 18th, 2016
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Comments (171) Closed
May 18, 2016 07:57am
11 PKR per unit..isn't it too high.. it's cheaper in India..and almost equal to US.. can't understand the reason behind..
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May 18, 2016 08:20am
Bad news for Pakistan. We will have to be very careful while dealing with China. China is going to charge very very high rate of interest on the money that China shall spend for all it's projects in Pakistan.
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May 18, 2016 08:40am
Excellent News.. Will save tons of pollution and environmental degradation. We need to concentrate on Hydel energy first.
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May 18, 2016 08:46am
India needs to stop activities which affect CPEC
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May 18, 2016 08:58am
Let us wait and see how many of these mega projects materialise.
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May 18, 2016 09:21am
We should allow whatever tarriff our iron brothers want. After all, we are family
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May 18, 2016 09:23am
Looks like Chinese friendship couldn't withstand the power of a few cents.
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May 18, 2016 09:27am
The truth of CPEC is coming out. Chinese are here for exploitation not charity like USA. Every Chinese project must give them minimum of 18% net profit and 30% gross profit. Otherwise they will not invest here. Every country that has received Chinese investment is in trouble,not just Pakistan. Instead, we should get western companies which are more professional and better technology and take their risk.
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May 18, 2016 09:30am
Chinese only want to make money
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May 18, 2016 09:39am
Let's find some other construction firm.
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May 18, 2016 09:48am
Not a good start for CPEC
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May 18, 2016 09:50am
Of the 46 billion which has been committed for CPEC over a period of 15 years, bulk of it is for electricity (75%) which Pakistan is interested in. However, the only thing China is interested is the road to Gwadar and that too paid for by Pakistan using Chinese labour. So you can expect similar news on one power project after another.
Somehow this is what everyone in Pakistan is banking on to turn around the fortune.
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May 18, 2016 10:04am
Hopefully another investor takes up this lucrative opportunity. This is an exciting time to invest in Pakistan and Im sure Pakistan can find other interested investors either in China or in other countries.
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May 18, 2016 10:13am
Had to happen. Generating coal based electricity is feasible near port side where transport cost will be low. PML-N has failed to set up jetty for transporting coal in punjab region.
No one wants to make a loss on their investment. Another gadani in the making where Chinese company backed out from 6600 MW coal project. in few days we will see a massive backing out from coal projects
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May 18, 2016 10:16am
Pakistan must be little careful with such money flow from China, in long terms it may cause huge burden on economy,
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May 18, 2016 10:20am
Coal Power Plants are costly and are not Eco-friendly... World is moving away from coal power plants to more reliable Nuclear, Solar, Wind and Hydro power plants
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May 18, 2016 10:27am
When it's fainancially not profitable to china, they don't bother much about pakistan. CPEC is only profitable to china and they will have complete sovernity on CPEC.
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May 18, 2016 10:29am
good coal based plant not taking off, its very polluting, blessing in disguise
tariff too expensive
they should put hydro ,hydel and solar plants
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May 18, 2016 10:39am
Bad news for the power sector.I think 12 cents per unit is quite a lot .....it's around 5-7 cents in major Indian power plants
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May 18, 2016 10:41am
that's what going to happen
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May 18, 2016 10:42am
You think China is here for charity of $46B? They are here for making money and if the project does not make financial sense to the Chinese they don't care who you are or how important the project might be for Pakistan.
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May 18, 2016 10:48am
The facts in this article are not right. When they were awarded the Project, the government committed to CMEC that enough local coal was available to carry out the project. However, when CMEC started work there was not enough local coal available. Therefore, they opted not to develop the Project. Moreover, the local coal, being deep in the earth and in thin layers, required latest costly technology which NEPRA did not allow in the Tariff. Therefore, the reason the Project was not developed was that government made fake promises on the availability of local coal and when there wasnt enough coal found in Salt Range, our regulator didnt allow the cost of excavation of coal.
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May 18, 2016 10:49am
Started again
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May 18, 2016 10:50am
In initial stages, the negotiations take place till a fine print and clear working strategy evolves. It's the start.
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May 18, 2016 10:59am
Case study for CPEC.
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May 18, 2016 11:00am
One is reminded of Dabhol power project set up by Enron in Maharashtra India . A project based on natural gas contemplated in 1990 is still running with some system of start stop, start stop. No body wants to pay for expencive BIJLI electricity. Hopefully it will start as gas prices are low now.
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May 18, 2016 11:06am
CPEC is a pipe dream and the world knows 90% of the benefit will go to China anyway. Also the project cannot succeed without India's blessing.
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May 18, 2016 11:06am
Good for Pakistan.
a) Riddance from old, polluting technology that was most probably being coming from a dismantled Chinese plant
b) opportunity to get power at a lower cost
Go and build your clean plant Pakistan. No reason why you wont be able to do it. Best luck from India.
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May 18, 2016 11:12am
It was to happen. Chinese can't b trusted.
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May 18, 2016 11:13am
it's all falling apart...
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May 18, 2016 11:25am
So very unfortunate. I wonder what the real story behind this might be.
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May 18, 2016 11:33am
Chinese expertise in using low quality coal for power generation is extremely suspect. The Chinese company may also be leaving because of technology issues but this is not stated because the Chinese are sensitive to loss of face. The best technologies for using low grade coal is available in India but Pakistan's tragedy is that it has closed its options on this front.
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May 18, 2016 11:40am
For once, I support the government for not selling out on the tariff. Even with iron allies like the Chinese, there needs to be some room for discussion. It's unfortunate that this project has stopped, but I envisage the issue being resolved in the foreseeable future.
Hasan
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May 18, 2016 11:43am
Just look around and you will realize how China extorts money from a country where it invests heavily. Sri Lanka has received billions of dollars from China in the name of investments. Do Pakistanis have any idea at all how this is being paid back?
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May 18, 2016 11:49am
Pakistan is giving total control in China's hands.. the policy makers in Pakistan should understand that they and their economy would be dependent on a single investor. If Chinese foresee any loss/issue/delay in investment, they will remove their investment withing no time. Pakistan should encourage its local industries as well as convince other nations for investment in Pakistan.. I am sure many Indian companies would also be interested in making some investments in resource reach Baluchistan province.
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May 18, 2016 11:49am
CPEC? well we should understand the fact china is using us for their own gains. We do not need a project which virtually will enslave our people and our land. its time for regulating this over hyped Iron friend's pseudo gift of generosity called CPEC
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May 18, 2016 11:50am
Like from USA nothing is free or discounted from CHINA. Big interest rate or profit margin they take.
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May 18, 2016 11:53am
The Chinese are shrewd business people. No matter what "iron brother" rhetoric might be doing the rounds in Pakistan, they will not step into a project unless they can profit from it.
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May 18, 2016 12:07pm
The dangers of putting all eggs in one basket. But pakistanis will never learn
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May 18, 2016 12:10pm
Hope other projects don't fail - we need to ensure the management for speedy implementation is given to competent management on our side
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May 18, 2016 12:18pm
Didn't expected this from CHINA
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May 18, 2016 12:42pm
Remove the Sharif government and FDI will pour immediately.
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May 18, 2016 12:58pm
The name of the Chinese company does not suggest that it is in the coal or electricity generating business. If that is a fact, then it is a matter of some concern that such a company was allowed to 'bid' for the project.
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May 18, 2016 01:04pm
Its time for Pakistan to realise that there are no free lunches. Countries are driven by commercial interests and profit motives, not friendly emotions. The sooner Pakistan realises this, the better. Otherwise its relations with China will go down the same route as its relations with the US.
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May 18, 2016 01:06pm
Pakistan can now invite Bangladesh Coal Corporation to complete the project
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May 18, 2016 01:09pm
it is about money and self interest (theirs). They are not there for your development - they are there for their benefit. If you realise this, then you will start to act to bring yourself up and learn self reliance.
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May 18, 2016 01:51pm
Better be careful with Chinese... They are very smart business people...Make sure you get fair share otherwise they may take away major profits n leave fraction
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May 18, 2016 02:04pm
China should honour the friendship and complete the project even if margins are low.
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May 18, 2016 02:07pm
Indias coal is about 3-4 US Cents.
Solar power is 7 US Cents. UAE solar is 4 US Cents.
What is CPEC all about ? I thought cheap loans , but things not adding up.
Why is our government so secretive?
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May 18, 2016 02:11pm
Its the beginning of chinese betrayal
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May 18, 2016 02:36pm
Allow Indian companies to operate in pakista-Can you have an Indo -Pak economic corridor. It makes way more economic and strategic sense. The Berlin wall came down in the last century ....why cant we come on common ground through what binds the wold most _ Economy. We have the grandson of the founder of Pakistan as one of the biggest industrialists. If given an opportunity, Indians will love to do business with a healthy and stable Pakistan
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May 18, 2016 02:37pm
@Aslam shaikh agree with you brother! What are few cents in brotherhood, just let them have it their way! Long live China Pakistan friendship.
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May 18, 2016 02:49pm
@Salim Khan If western countries were so willing to invest in Pakistan, you would have already. China was giving the best offer or atleast seemed to be. Pakistan needs more stability and better law and order with fewer explosions to attract Foreign investors.
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May 18, 2016 02:51pm
Long live China Pakistani friendships.
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May 18, 2016 02:52pm
Beware of Chinese built infrastructure. They fail more than they work. Case in point Srilanka where a power plant failed 35 times in 4 years.
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May 18, 2016 02:52pm
Can any one explain here what are KEY AREAS of GROWTH, you know about CPEC? When you guys will realise that China has built the corridor to transport its goods to West fast. They are not building or setting up manufacturing hub or industry which will help you grow as BIG ECONOMY. Being a Road side dhaba is not Economic boom!
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May 18, 2016 02:55pm
China is not going to do things unless they make a very good profit. The sooner you understand that, the better.
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May 18, 2016 02:59pm
This was Shahbaz Sharif's project on which tonnes of advertising was done with taxpayer's money. Sad state of affairs!
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May 18, 2016 02:59pm
Just go for solar my dear Pakistanis... Don't believe Chinese... every country is looking for their goals only ..... The solar is affordable by Individuals... with lot of sunlight one can survive better with out power grid....
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May 18, 2016 03:01pm
Even the original 8.55 cents is too high. Just imagine if there is a depreciation in the value of the PKR, where will the cost and the price go.
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May 18, 2016 03:10pm
@Yousuf Are you for real??? The Chinese firm left because of shocking inefficiency and hubris of your government, ie, living in Pakistan and charging US rate (11 PKR/unit). India has absolutely nothing to do with this fiasco.
Communist China is a businessman first! They won't help their brother unless it lines their pocket.
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May 18, 2016 03:47pm
Pakistan has put all the eggs in CPEC. Let's see what will be the outcome.
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May 18, 2016 03:55pm
@Fahad no, Chinese did not backed out of Gadani power project but the govt could not arrange finances as required and no provision in budget was provided also. For the govt orange train metros are more important than Gadani.
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May 18, 2016 04:28pm
Very disappointed in China;
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May 18, 2016 04:32pm
@Yousuf where comes india in deciding the price per unit.
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May 18, 2016 04:33pm
Chinese technology is very poor in quality. In West Bengal,my native state, Electricity Board has already experienced it. They will not maintain good standard, while making equipment............
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May 18, 2016 04:39pm
The work did not start and the people were told that project would have started in 2017. No one can build a 300MW power plant from first design to completion in less than two years. What's going on?
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May 18, 2016 04:40pm
@Yousuf Read the article first and then comment.
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May 18, 2016 04:42pm
Another eye opener to the advocates of good governence in the country
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May 18, 2016 04:50pm
Good Joke no body will work for you unless they have profit
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May 18, 2016 04:51pm
Excellent news.
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May 18, 2016 04:58pm
For me it is a good News. The Tariff was exorbitant with Chines technology with Coal Fired polluted technology. Although GOP did not negotiated LNG project efficiently . However, GOP brought the fruit of high efficiency CCGT technology and the tariff was around RS 7/KWh. Due to high efficiency and gas with low content of carbon and high calorific value of gas the emission will be far low compared to Coal Fired low efficient technology and top of that the tariff was high. I am expecting after 2020 the regulation will be in place on CO2 emission then at that time it will be difficult to operate Coal fired Power plant with out carbon capture plant, that means another energy penalty. In Pakistan the cost of finance is high due to many different reasons, Public has to pay the cost of corrupt mafia, economic instability and poor governance. At first stage we need to eliminate corruption from our society, although it seems difficult but not impossible. Please don't ignore PV solar of 3 cent.
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May 18, 2016 05:04pm
@Yousuf India is not the reason China is charging such a high tariff, get your facts right...China did not find any economic sense in the project hence leaving..what has India got to do with it?
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May 18, 2016 05:05pm
....and the unwinding of CPEC has begun. Somehow I don't believe CPEC will ever reach its full potential despite all claims to the contrary. If our government doesn't get its act together then CPEC is already doomed for failure. On the other hand, I think they need to stand firm also to make sure that we get the best deal and rates possible.
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May 18, 2016 05:09pm
@Indus Excellent comment!!
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May 18, 2016 05:09pm
@Aamir
"Excellent News.. Will save tons of pollution and environmental degradation. We need to concentrate on Hydel energy first."
What about losing out on 330 MW of power and wasted time.
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May 18, 2016 05:17pm
China is under tremendous pressure from US and other European countries to clean up their act and refrain from investing in this "dirty" project. At a recent meeting in LA, the Chinese delegation was cornered and asked a lot of questions about world pollution being orchestrated by China. Pakistan should be smart enough to abandon this technology or they will face very strict sanctions which will affect their Exports. Instead GO nuclear, hydroelectric or wind.
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May 18, 2016 05:30pm
@Fahad Jetty in Punjab? where exactly in Punjab?
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May 18, 2016 05:43pm
@M. Siddique I don't think it was a design and implementation plan. Rather it was moving an old Chinese plant to Pakistan. Do you have any references where it says it was designing a new plant and implement it? Would be most obliged if you could share some links or references. Thanks in advance.
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May 18, 2016 05:53pm
@Khurram
China is looking at the business viewpoint
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May 18, 2016 05:54pm
@Salim Khan Srilanka also is having heavy maintenance issues on their Chinese built coal plant. Based on that experience, Srilanka asked india to replace coal with LNG plant now.
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May 18, 2016 05:58pm
@Mohit (US) It's 13 Pakistani rupee as per today's conversation. Secondly company is smart they charge as per USD exchange ate so that Pakistan now pay for every depreciation also on top of already high rate. Keep one thing in mind this is the tariff what The company billed to Govt electricity deptt. Add transmission losses , theft and electric deptt profit on top. For consumer this price is near 15-18 Pakistani rupee. Basic thing is China don't want to invest there he only wants their port and rest all projects is going to see same fate.
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May 18, 2016 06:02pm
Chinese companies doing projects and bringing in their menpower to work. It looks like that the key of the $46billion treasure is in the Chinese hands.
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May 18, 2016 06:22pm
Are they trying to recover the cost of kickbacks paid to Sharifs from taxpayers?
This is how offshore accounts get money directly without remittance from Pakistan!
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May 18, 2016 06:25pm
Coal based projects not good for environment!
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May 18, 2016 06:31pm
Start making your own policies. You cannot depend on other countries to build infrastructure for you. Nobody did for China or for India. If somebody will they will have lot of vested interest. So start over by creating investment conducive atmosphere because then you dont have to invite countries they will come on their own, every company wants new market. one thing Pakistan has to realize that if they allow any terror group to reside on its soil its not going to help its economic clause and in modern era there are no super powers without economic might.
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May 18, 2016 06:42pm
as a Indian I wants total ban on chines product import as seen their product manufactured from small scale industry to larger scale are not good in quality as seen road vender selling Chinese torch to fancy electric lights fancy toys and so many other stuff very poor and cheap quality product. gave me name of any chines car that complete against world best or even spell name. Chinese only interested in exporting their cheap prudct to other nation but when came to export they does not want to gave favour to other countries. Chins are very cunning businessman.
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May 18, 2016 06:46pm
Just look at srilanka how so called chinas big investment turned them down into a debt ridden economy. Now china is offering them loan s at exorbitant rates. Be aware...
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May 18, 2016 07:03pm
Where are those who going gaga over CPEC.
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May 18, 2016 07:04pm
Educate your own people and get the work done by them. Foreigners don't come to Pakistan for giving out freebees or friendship.
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May 18, 2016 07:07pm
Concentrate on generating Nuclear power not warheads.
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May 18, 2016 07:11pm
Look and learn from Sri Lanka. They have now abandoned their Chinese made white elephant coal power plants and are going to India for latest Gas plants.
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May 18, 2016 07:22pm
First Question: which part of these billions is destined for private accounts in Panama, Luxemburg, Switzerland etc.
Second question: Has "cooling down" of our China-Projects something to do with the warming up of relations between China & India on the one side and with our rising problems with the USA?
China may ask a higher price for their friendship, as we are losing friends over all.
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May 18, 2016 07:30pm
Please read this page and yoy will realise how chineses companies work. http://www.sourcewatch.org/index.php/Lakvijaya_Power_Plant
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May 18, 2016 07:32pm
Increase levelization to 50 years instead of 30 & increase tariff's to around 10 cents per unit and China will agree. Pakistani losses will have wider spread and hence will be manageable. Pakistan will benefit from longer lock-in of tarrifs as they are bound to rise over the period of time..
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May 18, 2016 07:36pm
Was it IMF or The Economist which published an article on China's economic slowdown which will downgrade or terminate CPEC as a whole?
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May 18, 2016 07:41pm
In a recent meeting in Los Angeles, China was nailed and warned on 2 issues by a host of countries including US, Britain, Canada and EU.
1) Generating "dirty" power (coal)
2) Working in disputed territory. (Azad Kashmir).
Guess who is behind all this ??
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May 18, 2016 07:48pm
@For Indo Pak Dosti -- One option could be to explore gas fired thermal power plant that can be setup with India & Iran's investment (Iran can supply gas). I am sure the tariff could be around 7 to 8 cents per unit. Plant can even be built in Afghanistan (south of Kandahar) with grid link-up at Quetta with a firm commitment of 500MW for Pakistan.
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May 18, 2016 07:53pm
Nobody who knows much about coal mining or power plants would tell you that it's feasible to have a mine mouth power plant up and running within a 18 months when you haven't even got a developed mine. Perhaps it's time to outsource decision making to people who have some experience rather than political connections?
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May 18, 2016 07:54pm
@Yousuf "India needs to stop activities which affect CPEC"
Please read the article. The company wanted a much higher rate for electricity than Pakistan was willing to give. What does this have to do with India?
@Mohit: Keep in mind that they are talking about Pakistani Rupee and not Indian rupee.
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May 18, 2016 07:57pm
@Aamir do you have enough water
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May 18, 2016 08:08pm
Next company will step in. These issues are not the end of the world. Mega projects face issues all the time. For all those people that say be wary of the chinese, they need to understand that China is isn't giving a loan and leaving. It is investing a a partner for its growth and security. After the United States the only other mega economy is China. Calm down and see what happens.
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May 18, 2016 08:34pm
This is another good news from havens after Panama papers. Say no to coal which will pollute the air & waters of Punjab and any plant in Sindh will destroy the Sindh agriculture. For God sake get rid of poorly educated policy makers and those who are hookers in disguise.
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May 18, 2016 08:39pm
Chinese are not Americans. Unless they get a handsome profit they won't be interested.
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May 18, 2016 08:42pm
@Yousuf what has India got to do if Chinese company back out? Simply don't blame India without reason.
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May 18, 2016 09:16pm
@Aslam shaikh You really need to learn how to save your own country. On the name of brotherhood, you can not let China loot Pakistan. Chinese are very cunning men, they will not do business with you or have a friendship if there is no profit for them. The sooner you learn, the better it would be for you country.
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May 18, 2016 09:28pm
To a neutral observer comments from the Pak friends seem to
be more of emotion than objective reasons,on China's back out
from agreed power projects.In business matters how and why
iron friend can sustain future losses or not earn profits from
long term,heavy investments,whose feasibility ab-initio seems
doubtful.Secondly any country needing foreign investment
in infrastructure projects,at lower cost and better technology,
has to provide conducing social,political and economic conditions to the investor.That environment is far away in
the country.Think in a cool fashion how atmosphere
retards a contry's progress and development.
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May 18, 2016 09:33pm
CPEC investement is worth US$46Bn. over 15 years? ie: US3(approx) Bn. per year? This investment can be done by Pakistan themselves and PML(N) is crying hoarse for this deal? Surprising !!
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May 18, 2016 09:41pm
@Begistan. Thank you for asking. I am still around. CPEC connectivity is a wonderful concept. Indeed, I claim that Karl Marx was in error in basing his theory of the type of society on the 'means of production'. I say, societies are interdependent and are driven Not by the means of production but by the means of trade. Look around, there is sufficient evidence that the countries that excelled in trade became the 'top dogs'. CPEC will increase trade. Yes, it will benefit China but it will also transform the economy of Pakistan.
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May 18, 2016 09:43pm
@SSB "no body will work for you unless they have profit" - then why you call China a sky high, deep sea friend. They will lay a road to transport their goods to West Asia but we have to pay for it. The work done by Chinese companies so that half of the loan is reaped back even during construction. We will pay 18 percent interest on this type dubious loan. Our participation is just establishing roadside dhabas to feed Chinese drivers with parota and chai. Bad luck Pakistan. Any sane person can understand that the agreement with China on CPEC is a lever for China to exploit Pakistan to its last blood drop. that's why transparency is denied and terms and conditions are secret.
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May 18, 2016 09:45pm
The only guy who made any sense on this forum was Azmat Ali! Kudos to you for understanding the way the US thinks and operates !
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May 18, 2016 10:01pm
Pakistan needs to understand China beyond the slogans. I am amazed on the enthusiastic support by Pakistanis of China without have much knowledge of the Chinese culture and mind set. Dealing with Chinese in business you need to be very vigilant.
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May 18, 2016 10:07pm
@Saad Alamgir What you said makes sense. This government is utterly incompetent at making good project plans and budgets. Slowly all these mega projects will fail.
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May 18, 2016 10:08pm
Only yesterday all my Pakistanis were welcoming China for providing army base in Pakistan and today every one is cursing China the iron brother perhaps they come to know that iron has no friendship fellings iron is iron, make humans your friends not iron brother.Good luck Pakistan.
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May 18, 2016 10:08pm
@Yousuf - How come India gets into the issue of Chinese company withdrawing from coal project. It was Pakistan which has not facilitated the chinese. People like you keep on blaming india for your inefficiency. So, until you realise the real reason, no developments and not even 1000 CPECs can upgrade Pakistan.
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May 18, 2016 10:09pm
@Indus hahhahaha hahahha you guys are pathetic, when you guys will start to think about your own country. You always think about china, saudi, palastine, bangladesh,kashmir, and many more but never faithful to pakistan
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May 18, 2016 10:11pm
@Khurram - WHy boss? China is doing any charity. It is looking for CPEC to expand its business. So, why should it incur losses.
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May 18, 2016 10:23pm
@Mohit (US) Cheaper in India because 400mil, the most poor of you population are without electricity. You have enough but you cannot afford to give that extra to the poor
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May 18, 2016 10:25pm
This clearly is a stark failure of too ambitious Sharifs not ready to listen to the valid reasons.
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May 18, 2016 10:36pm
When in our neighborhood we have world class energy technology companies and we are inclined to buy from China an outdated technology is beyond imagination? What is wrong not asking India to help us? Why our policy makers want to take our nation to stone age ?
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May 18, 2016 10:54pm
India should be approached for cheaper electricity.
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May 18, 2016 11:15pm
AHA !. Read the latest Chinese newspaper edition of Chinese Digest. It says the Chinese firm is pulling out for 2 reasons. (1) Low tariff rates. (2) Security concern for its Chinese workers.
Even the Chinese are concerned about their security inside Pakistan.
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May 18, 2016 11:26pm
Its a business decision - pakistan can perhaps provide a better deal.
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May 18, 2016 11:54pm
China being the only friend of Pakistan at the moment has no choice but to burden its citizens and cough it up.
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May 19, 2016 12:08am
Sri Lanka is struggling to pay back on Chinese investment cum loans. They have already burdening people with more and more taxes to repay those loans. Now Chinese are pressuring the Sri Lankans to allow it's warships to doc in Lankan ports if they want the Chinese to forget those loans and the Lankan president is running to India every other week for a solution. This is the fate of chinese investments.
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May 19, 2016 12:19am
@For Indo Pak Dosti Indians know Pakistan better than anyone else, after all Pakistanis were also Indians for thousands of years. Therefore it will be better to have a India-Pakistan economic corridor or better still a South Asian Economic corridor inc India Pakistan and Bangladesh and rope in Afghanistan into it too. That way war will end in Afghanistan and whole region can develop at a fast pace. With such a corridor Indians can help Pakistan to grow much faster.
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May 19, 2016 12:26am
Good decision because coal is not an environmental friendly fuel in the first place.
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May 19, 2016 12:28am
@Yousuf . I could have been that China changed its mind under the influence of India . Lol !
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May 19, 2016 12:38am
Everything looks good on paper, did anyone in the government set guidelines before handing out projects to these companies? If the price per unit wasn't discussed by the government,which would have been one of the key points, what exactly did they discuss during all those meetings before finalizing ? All this time wasted. If you fail to plan, you plan to fail.
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May 19, 2016 12:50am
There goes our high profiled friend's first project!!
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May 19, 2016 01:05am
Only the india posters seem happy with this setback here. They have nothing better to do but troll around.
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May 19, 2016 02:12am
The world kept saying don't put all your eggs in one basket and now look what Les happened!
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May 19, 2016 02:17am
I feel Pakistan is putting all its eggs in one basket. Not wise. Pakistan could just as well trade with India and Normalise relations and not be used by China as a economic and military proxy.
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May 19, 2016 02:27am
sooner, the entire CPEC will evaporate as it was never materialized.... such is the magnitude of lies which is blazing on the coat of PMLN...and PM. you will not find any news about CPEC in chinese print and electronic media.... this PMLN/ PM are just lying about cpec....
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May 19, 2016 02:31am
People are talking here about low cost in India. Well in majority India invests its own money and labour and expertise. Then internal security is much better.
For China to invest in Pakistan is on the scale a riskier venture. So they will charge high interest rate and high per unit rate because they want to recover their money fast. It is that simple.
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May 19, 2016 02:33am
The discussions on this sensitive project should have been kept private and not leaked to the media but now the the irreparable damage has been done .China's image in Pakistan has been badly tarnished which is obvious from all the peoples comments.Pakistan should forget about China and look toward East Europe. Countries like Russia,Ukraine and Poland. These countries have solid outstanding Electrical and Railway Projects. They would be more than willing to give long term credit loans.I would like to request the Pakistan Govt.to seriously consider this alternative in doing business with these countries.
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May 19, 2016 02:57am
@SACHIN Not entirely true. China or any other country will ofcourse not throw away money. But chinese do have capability to implement projects very fast and cheaper than most.
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May 19, 2016 03:02am
Fellow Indians should restrain from adding negative comments about Chinese. India and China have much more cooperation in all fields than China- Pak. The view in Pakistan is they see China only in a very narrow military and antiIndia UN veto perspective. China gives less than 1% weight to relations with Pakistan. China invests and does business with hundreds other countries including lot with India
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May 19, 2016 03:14am
As a Indian I want my Pakistani brother to grow and prosper. Yes we have differences in opinion, yes we fight, but brothers don't! All I wish for Pakistan is to stand on its own two feet and not rely on other countries to dictate its policies and growth trajectory. I hope I live to to the India-Pakistan economic corridor.
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May 19, 2016 03:17am
@Anand You are right , All the power plants in China have been closed... they are selling these power plants to PK
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May 19, 2016 04:29am
Please pay up to maintain friendship. China wants to extract as much profit as possible, plz help it to do so.
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May 19, 2016 05:25am
Let real China emerge and you'll find that your worst enemies are your closest well wishers. Beware of smooth talking friends because in need they are the first ones to desert you.
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May 19, 2016 05:30am
US$300K Bank Guarantee which has been encashed from the coal powered generation programme should not be a problem. The Chinese company will recover it from the hydel power project.
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May 19, 2016 06:29am
@wise man or somalia power corporation.
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May 19, 2016 06:42am
Why Pakistan is not building own power plant with own money? They should finance these kind of project by tax-free bond.
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May 19, 2016 07:08am
@Saad Qureshi For India, USA is also like that. Unless and until they get some positive return, they don't invest in India.
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May 19, 2016 07:22am
1). lot of our next door friends start giving us advise, speeches, but they never give same advise to their govt. to stop land-grabbing and settle it peacefully (90% problem solve,
2). all the big projects in every country(US, INDIA) have ups and down 3). friendship with china does not exclude either country to do business with other country....
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May 19, 2016 07:43am
mega projects has ups/down...
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May 19, 2016 07:45am
@Yousuf Oh! India asked Chinese to opt out. Great. It is actually the practicality which is forcing Chinese to get out.
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May 19, 2016 07:45am
mega projects has ups/down...
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May 19, 2016 07:50am
@Khurram "China should honour the friendship and complete the project even if margins are low."
Hahahaha! you want charity from China. Go ahead and beg.
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May 19, 2016 10:43am
The time is gone when projects were in two digit millions. Also now it is past when projects for small road bridges, link roads, BHUs and schools were considered of importance to the public and were money makers for contractors. Moreover, no one even mentions now cost in PKR; big shots talks in USD, in billions,of power , energy motorways and metro projects.
Has anyone with know how of economics and commerce has studied national needs and set priorities? Has any parliamentary, judicial or administrative accountability been done for billions that changed hands in last 2 decades in the name of community and national development. It is visible that the investment done by MNCs or international aid as well as donor agencies has the priorities set by them. So if power is produced at 11 PKR per unit or 110, who cares. If it remains like this we may be listening of another economic corridor in 2019-20 with same tall claims. Life will go on.
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May 19, 2016 10:50am
99.79% of the negative comments about China are posted by Indians or Social Media Wing of indian Intelligence Agencies.
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May 19, 2016 11:08am
@Kamal Pasha. : yeah i see thatall investors are crowding near the gate to Pakistan, just waiting forvthis to happen
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May 19, 2016 11:12am
@Aslam shaikh .......... you realise the poor people of Pakistan will be paying such tarrifs right?
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May 19, 2016 11:13am
@Salim Khan ........ we have dealt with westerns which brought us today at this stage!
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May 19, 2016 11:20am
@Tamil Guru Charity begins at home!
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May 19, 2016 11:45am
Another 59 Billion PKR saved by "brilliant" PMLn Government.
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May 19, 2016 11:52am
China has the capability to supply world class technology, it is the incompetency at home . We need to ask china to supply power plant complying the international code and standard. Chines material are acceptable but Code and Standard should be international . Selection of Technology is very important, if we will go on Coal fired Technology then we need to ask ultra super critical power plant whose efficiency can reach up to 45 %. To be honest we are emitting very less CO2 per capita but we are suffering a lot. I already communicated through Dawn News paper comments prior to Paris conference on climate that PM needs to convince the World leaders that Earth is a motherland for all but few countries are polluting it much more , they need to compensate us for our loss caused by global warming.
For power generation we can adopt PV solar which is now available at 3 cent/KWh. we need to increase the share of total electricity generation from wind, solar, hydro, biofuel and Nuclear.
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May 19, 2016 12:07pm
The most fearful part of the CPEC deal with China is that Pakistan is going to " hand over " our Gwadar port to China for a period of 40 years . Why ? Where is the need to do so? Russia competed many projects in India , but India did not hand over any project to Russia for any period! This is the most dangerous condition of of the CPEC deal. it is sad that our media and responsible news papers like Dawn , the Nation or Jung failed to take up this matter with Government or raise concern among the citizen of Pakistan !
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May 19, 2016 02:22pm
This is what will happen if Pakistan continues to place all eggs in one basket.The situation is a fertile ground for exploitation.Pakistan has be friended by many to exploit it and prey on its vulnerabilities and emotions ,only to deliver heartbreak and devastation.
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May 19, 2016 02:38pm
@Khurram ........ There is nothing called as friend but intrest .....
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May 19, 2016 03:23pm
End of the day Chinese are professional and will not give you anything free. This is the biggest proof of it.
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May 19, 2016 03:28pm
This project has to be done if not this company another will come soon...
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May 19, 2016 07:48pm
I hope that this company gets black listed, banned to participate from all other current and future bids and request to GOP to please increase the bid bond amount to 10% for all commercial projects... it seems like a joke to pay .05% as bid bond (i.e. 3 crore PKR bid bond for 6,000 crore PKR project).
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May 19, 2016 08:11pm
Pak should go for international bidding. Allow India companies to participate. BHEL or NTPC shall take & complete the project in much lower price. Unnecessary enmity with India causing these things to Pakistan.
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May 20, 2016 12:00pm
@Salim Khan : 100% agree with you.
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May 20, 2016 02:17pm
I'm surprised at the naivety of Pakistani policy makers in signing the CPEC. China wants a shorter route to Persian Gulf passing through Pakistan. Pakistan will only get what in India are called Toll Plazas,Roadside Dhabas, Fuel Pumps and Transport companies. That's all. Trade off is pretty imbalanced. Don't sing about $46 bn. Major part of that is Loan which Pakistan has to pay off in one way or the other. Doesn't make sense why will Pakistan sign such a deal??
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May 20, 2016 06:36pm
@Sajjad You are so right.
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May 20, 2016 07:39pm
These corrupt rulers along with Chinese corrupt companies need to be sent back to their homes.
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May 21, 2016 12:16am
@Aamir Well India is producing 68% of total energy from coal and that is the reason for less energy problems in india.. learn something from your neighbours and try to adapt according to you needs.
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