Chinese company should have studied all the aspects before bidding for the project. No point in making excuses after winning the contract.

So finally loot by Chinese showing off....

Cpec will go this way too!

Big set back for cpec. The contract should be redone as per 12 rupee per unit. Hail cpec

All of CPEC will be scrapped due to pricing...

Now we will find out the true cost of Chinese onvestment

Rs11.67 to 12.4 per unit??? We're paying 6.50 rs per unit when i cross 500 units. Its 4.30rs for below 500 units in Tamil Nadu/India

NEPRA is harming CPEC, 80% of the CPEC investment is supposed come from these Chinese companies and the deal was minimum 18% ROI officially ( unofficially north of 30% ).

Too much dependency on China for all kind of technology is not good. China is not even technologically advance country.

Its just the beginning ! Consequences of vision less policies and blind faith.

Chinese are selling power at a cut throat price. Should the Government allow them to exploit the poor consumers?

All weather friends don't walk away like that. Give them what they want. What is friendship for?

Chinese companies started showing their true colors.

The Chinese wont do anything unless they are making a good profit. After all they are not running a charity.

Absolutely, signs of things to come. The US company Enron did something in Maharashtra State and the consequences were similar. Unrealistically priced energy.

Looks like NEPRA does not care about the 46 billion $ inv from the all weather friend

None of the foreign companies will invest until the project is not is not profitable

A kick in the teeth for Big Brother. Business is business.

Chinese power plant promise 3000MW and will deliver 300MW. We should be careful with them.

How could the Chinese company start building the power plant without having an agreeable tariff approved by NEPRA? The whole affair sounds like rental power plants in PPP tenure who received staggering payments as mobilisation advance without having anything on the ground. Well, why not.

NEPRA did not cancel anything, the company simply excused itself.

@Mohajir welcome to world of economic reality Pakistan

Depends on what kind of feasibility studies were done or was it just political agreements. Exchange rates, coal quality and logistics need to be there to get the right cost. Otherwise it would have ended in later stages. NEPRA cancelling means there was something incorrect in earlier estimates. Pretty sure any other company from other side of the World would have done the same.

Its a good thing for Pakistan - coal powered power stations have long term impact on environment and health. Pak should invest in clean and renewable energy.

I'll get my pop corn and watch this tamasha!! This is gonna be interesting.

power cut

How can Chinese companies survive when there is no infrastructure? This is only the beginning.

Well begun is half done!!

No issue. They will get back same contract when it is started again in few months. Price will be around Rs. 14-15 with inflation adjustment every year which is around 10-12% every year.

good move....think about the pollution....nuclear plants is the way forward....they need to consider building them deep underground.....for security reasons.

Now we know why Government is not releasing the CPEC agreement details!

So it doesn't work out.. Indians start making hay out of it.. Word of advice.. This is not the end of it.. We will still collaborate to ensure that we remain a thorn in your side.. And the contract will be re-negotiated..

Didn't same company bowed out of the project few weeks back?

http://www.dawn.com/news/1259048/chinese-firm-bows-out-of-coal-based-power-project

Surely the tariff will be cheaper than the oil based Power plants. Let us not allow our internal enemies to succeed. We should think of a win win situation for further strengthening our friendship with China.

Do not compromise on quality.

Chinese know how to exploit weak economies.what they are doing in Africa and just recently in SriLanka is known to all.Never allow them to take 100%ownership better to have JV with local companies as in India they do.

As a power sector senior professional in India, I consider Rs 8.55 itself PROHIBITIVELY HIGH tariff which works out to Rs 5.5 IRs. Even if say a low PLF of 70% and a discounting rate of 10% is considered, fixed cost should not exceed Rs 2 for 330 MW size. And fuel cost considering a station Heat rate heat rate in the region of 2600 ( 30 year average) should yield a levellised fuel tariff not exceeding IRs 2., taking total to max IRs 4 or PkRs 6.5.....................So 8.55 is a COOL LOOOOT !

What is the fuss give them what they want. They are building CPEC

Chinese companies are well known for making deal, but its too much in this case. Chinese companies are using Pakistani resources like coal/land/water and they give electricity at very expensive rate. In India we have Rs5-6 per unit, India is ready to export at the same rate.

Just posturing. It will go through once the politicians get involved.

Don't do it if it's not feasible ......economics trumps even trump

Ignorance and lack of knowledge at its peak!!! "Give them what they want?" Seriously? ?
Agree!! china is investing billions of dollar but that doesn't mean we have to accept everything there way! Investment doesn't mean slavery! We have our terms they have there and that's the way sovereign states work.. Higher cost mean higher bills, higher bills mean high increments in each person monthly salary and at the end we will be where we are standing today!

I am not sure what are charges for domestic power supply in Pakistan. I pay 3.5 per unit..Power supply is about 22 to 23 hours

@Madras their rupee is smaller than us. Approx twice as less

1st os all law nd order safety security of foreign company nd their employees extreme poor not only but rulers are not taking action . On organisations. Openly delivering hate speech . Rulers indirect allows them . Sir how. Foregn co . Vl come nd invest . Except china. No good relation with neighbouring, war mania, see the past record,who started nd what result .

@Madras Your calculation is wrong. The price mentioned is Pakistan rupees not Indian rupees.

Money has No value before friendship. In China we must trust!

Chinese must subsidies the rates. Their cost will reduce when infrastructure improves. They shouldn't think profit from day one. This way cpec can't complete.

Rust covering the IRON relationship.!

@Sachin Still Pak rupee is 1.5 times of India. On avg. Indians pay around INR 5/unit which is about 7.5 PKR. Even if we add extra 2.5 that will be max 10 PKR.

@Kulbhushan Yadav Yes, you are correct. However, Nepra did not take any action in regard to license when Chinese company walked out some time in May this year. It cancelled the license today which marks dissociation of the Chinese company from the project official.

It is generally assumed that additional power generation will accelerate Pakistans Industrial growth.In this illusional fervour what is overlooked is the critical role that the cost of electricity plays in delevering a compet etive product.While horrors ike Nandipur may not repeat, remember that even hydro electric proj ects, eg Neelun Jhelum will deliver very costly power simply due to unending delays and cost over runs.

@Sachin It is still more, here in India it 4-5 rs i.e 8-10 Pakistani rs. I am living in Bangalore my monthly bill is 1000 rs with 24x7 power supply in gov quarters.

@Ricky This is how the Chines do bussiness ask Srilankans!!

Chinese know Pakistan has no choice ,So they will squeeze the most ounce of milk they can.

True friendship will prevail..

It would be cheaper, efficient and ideal to buy electricity from India ,rather than get fleeced by the Chinese.India ,Pakistan have river agreements ,since it cannot be avoided. So Electricity can also be considered as an unavoidable purchase and Paksitan can reciprocate with transit rights ,which will additionally indemnify the electrical purchase. With many private parties in India willing to sell at much lower costs ,security will also not be compromised.

As per Wikipedia total installed capacity in Pakistan(as on 2014) is 22kMW and fossil fuel based Thermal plant capacity is a minimal 14,635 MW. India in a year is installing more capacity than this. The major reason are .1) The vision of Indian politicians(with honourable mention to Nehru) in establishing India companies to cater the need of a starving country (BHEL, NTPC etc) 2) Giving more emphasis to education.

Now the South Asian countries should join hands to tackle these problems. India public sector countries are working in Afganistan and Bnagladesh. Technical superiority of one country can create jobs in another country. Pakistan too can take benefit of it. And trust me, Indian power plant sets are better than that of a Chinese sets.

Thanks PS: I have experience of project management of six sets of 600MW and currently looking after a 800MW super-critical project.

If the rulers could have maintain good relation with India keeping their differences aside for few yrs, Indian industrialist have given more effective power plant and development infrastructure. More jobs. Trasaction in rupees. Indians hin dustanis are most liberal community in the world. They all are welcome . Extremism ND immature leadership have isolated country . Now see the record of last 2 yrs . ModiJi leadership making progress ND on otherside going down ND down in all sector . It is up to reader to accept the fact . Indians are working all over world and mix with local people and always development country . India shining .

@OSD itv i s just the beginning of the end

I shall request the prime minister not to cancel the licence of company and instead increase the tariff as their demand is genuine this will pave the way for local coal mining and development and further the chinese company who is to suffer losses will not be at loss .