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Chinese firms to invest $35bn in 19 power projects

Updated Mar 10, 2017 10:26am

ISLAMABAD: Chinese companies will be investing $35 billion in 19 power projects which will generate 12,134 MW of electricity under the China Pakistan Economic Corridor (CPEC) project, said Secretary Water and Power, Mohammad Younis Dagha on Thursday.

During a presentation to the Public Accounts Committee (PAC), Mr Dagha said Chinese companies will also be investing in five coal projects in Thar, four imported coal projects, four wind power projects, three hydro power projects and one solar power project along with a 660 KV transmission line between Sindh and Punjab.

The meeting was told that due to the Thar coal projects, Sindh will be able to contribute 3,960 MW to the national grid, the imported coal project will contribute 4,260 MW, the hydro project will contribute 2,714 MW, the solar project will contribute 900 MW and the wind power project will add 300 MW to the national grid.

Sindh will be getting the lion’s share of this energy at 5,580 MW, Punjab will be given 2,940 MW, Balochistan will be given 1,620 MW, Azad Jammu and Kashmir will be given 1,124 MW and Khyber Pakhtunkhwa will be given 870 MW.

Members of the committee asked if the existing railway infrastructure will be able to transport coal for the energy project to which Secretary Planning Division Yousaf Naseem Khokar said that Chinese companies are also investing in and providing loans for the up-gradation of railway tracks from Peshawar to Karachi and that the matter is being discussed between Pakistani and Chinese officials. He said the updradation of the ML-1 track from Peshawar to Karachi will cost $8.2 billion.

After a query by PAC member Abdul Ghafoor Haideri, Mr Dagha said major parts of Balochistan will be give relief from power loadshedding by the end of the year. He said efforts were being made to connect Gawadar with the national grid and a 300 MW project has also been planned for Gawadar city.

In regards to the overall requirement of electricity, Mr Dagha said: “At present we have 20,000 MW of electricity in the system”. He said that 6,000 MW will be added to the grid by the end of 2018.

Published in Dawn, March 10th, 2017


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Comments (37) Closed

McChrist
Mar 10, 2017 10:16am

Oh what again? It seems no other country except china is interested in investing in pakistan.

IMTIAZ ALI KHAN
Mar 10, 2017 10:31am

CPEC will benefit Pakistan and China both. There is no country on this earth outside of China which love China than Pakistan. Proud to have China as a trusted friend for all these years. Long live Pak-Sino friendship! The land of Confucius.

Mukund
Mar 10, 2017 10:39am

Is it a loan or friendly investment...

Fast
Mar 10, 2017 10:40am

Yes only China is a better option for Pakistan. As our friendship is deeper than the sea and higher than the ocean this is enough for our bad wishers to have bad days and nights.

GET real
Mar 10, 2017 10:39am

I just watch he last line and see...What they deliver against committed numbers. Heard enough promises!

The_Truth
Mar 10, 2017 10:43am

Everyone would come to invest in Pak. But today there is only one country which wants Pak to prosper ie china.

Fazal Karim
Mar 10, 2017 10:48am

We can sustain huge foreign investment if boost to Pakistan export which is doubtful.

GLOBAL PEACE
Mar 10, 2017 10:59am

Great, CPEC will soon become 100 Billion Investment

Honestly
Mar 10, 2017 11:06am

Hope the electricty would be at affordable prices and the cluases negatiated favours pakistans intrest. Unlike many other projects that are under controverst now.No one wants a money making machine errected on the land profiting only one country and the local inflation to be all time high due to costly fuel. Fingers cross CPEC seems to be is one time shot hope its success with right intent uplifting nation.

AhMAd
Mar 10, 2017 11:08am

@Fast Enjoy this friendship till it lasts. In this world even relatives don't stay together when it comes to Money. China is giving big loans which you will have to return with interest. Just pray that Pakistan don't go same way as Srilanka did.

saif
Mar 10, 2017 11:24am

Heavy pollution and disregard for environment will become hallmark in Pakistan soon like China. The Chinese quality of designs and expertise is untested and don't meet international standards. Interest rate charged by Chinese for China build project from labour to material is too high. Special economic zones are only for Chinese and even trucks used in toll free roads are Chinese by Chinese drivers. What Pakistan is getting in return? Roads which will need maintenance after one or two years? or Swiss back accounts filled with Chinese currency?

Sam
Mar 10, 2017 11:25am

Any idea at what rate power will be sold to consumers? Hope it will not become CP engulf corridor.

amumiya
Mar 10, 2017 11:27am

@McChrist pakistan doesnt need billionaire friends since it has 11 trillionaire china 100 billion is no joke .i hope china waives off interest or payment as whole .

Rizwan
Mar 10, 2017 11:48am

Wow this is great news. Pakistan is lucky to have a friend like China who is just continually giving away money, expertise and manpower selflessly. They do not even want anything back, rates of electricity generated will be cheap and all the revenue will go to the Pak government as there is no mention of paying back amounts or terms. Selfless gift from the kind dragon.

AdNan 2
Mar 10, 2017 12:01pm

Wow wow wonderful China. Thank you China. Long live Pak-China friendship.

Feroz
Mar 10, 2017 12:03pm

Is Pakistan a country without a single financial analyst ? Please calculate again and again what is being said --- $ 35 billion for a capacity of 12134 MW. It works out to a price of $2.88 million/MW. This is exorbitant by any standard, a fair price closer to $ 1 million/MW. No one is explaining at what price the power produced is going to be sold, without which statistic how can we estimate whether there will be any demand for it. I sincerely hope this is not wholesale loot in the name of development and economic progress. Only time will tell.

AdNan 2
Mar 10, 2017 12:16pm

Pakistan developing at fast speed by China. Thank God Pakistan has friend like China. Pakistan sit back and eat Pop corn and enjoy China show.

SID
Mar 10, 2017 12:15pm

@McChrist Its a part of $ 51 billion loan. $ 35 billion for power sector ( including power plant & transmission line ), balance for infrastructure ( road, highway, port , trainline).

D.K.PAMNANI -INDIA
Mar 10, 2017 12:14pm

China is the only country who helps Pakistan to develop because no other country is interested in China because of their low quality materials.

SID
Mar 10, 2017 12:17pm

@Rizwan Sarcasm at its best !!!

SID
Mar 10, 2017 12:22pm

@amumiya Just like SriLanka did hope & instead got carrot from Dragon !!!

SID
Mar 10, 2017 12:23pm

@Honestly Electricity can be affordable if there is healthy competition in sector. In India Govt invites tender from power generating companies ( both domestic & international player) who can supply power at cheapest rate. That's why solar power & wind power is on par with thermal power . But in CPEC only Chinese will do project & supply you power. How can you expect cheapest when all eggs are in single basket ??

Waqar
Mar 10, 2017 12:28pm

We love our friend china.

Saif zulfiqar
Mar 10, 2017 12:32pm

@McChrist, Who needs US in Pakistan. Everybody is happy with China for investing billions in the country and not asking for any favours. Have been friends for more than half century.

SID
Mar 10, 2017 12:28pm

@Feroz Finally someone from Pakistan has raised a valid point. Chinese company are charging more than 2 times than prevalent rate in India & Bangladesh project ( for a 3 decade technology) .

Pluralist
Mar 10, 2017 01:02pm

@D.K.PAMNANI -INDIA "China is the only country who helps Pakistan to develop because no other country is interested in China because of their low quality materials."

This is another perceived myth. China makes low quality, medium to average quality, high quality goods and to very high quality goods. It depends on the demand and supply. Very high quality goods to US and Europe and medium to average to other countries. But this can change with the right transactions.

BTW India imports about 70 plus billion USD of China made products. Worldwide exports of China is more than 1800 billion USD.

saudagar
Mar 10, 2017 01:27pm

@D.K.PAMNANI -INDIA ,sir but china makes many world class electronis ,heavy engineering machines and cars too , atleast dams and bridges ,ports in china are gorge(ou)s and huge !

saudagar
Mar 10, 2017 01:26pm

@Feroz ,only you understood and hence worried i sincerely hope china forgets loan ! a friend in need ...

Saurabh
Mar 10, 2017 01:44pm

Pakistanis need to note the word - INVEST - it's not aid So people invest where there r good returns And what returns are promissed ?

Sagar
Mar 10, 2017 01:45pm

@GLOBAL PEACE 100 billion loan*

Sagar
Mar 10, 2017 01:46pm

How can a Country with $ 250billion gdp will pay $100billion+intrest loan to china

AHA
Mar 10, 2017 02:29pm

@saudagar China cars??? can you name one car that stands half of world class cars?

Alba
Mar 10, 2017 02:38pm

Bottom line: The Pakistan government and industry does not have the expertise nor the manpower to build the number of power plants the country needs. Nawaz Sharif has realized that as a fact and has acted accordingly. China was the pragmatic choice to get it done.

ALTAF Ahemed Ansari
Mar 10, 2017 02:56pm

@Mukund Sir, Investments are meant for business. There is nothing like friendly.

mad mamluk
Mar 10, 2017 10:38pm

excellent

surya
Mar 11, 2017 03:29am

@IMTIAZ ALI KHAN Who every give money is best. Till when US was giving money They were the best now china.

Sami
Mar 11, 2017 05:13am

so many MWs been added on Paper-- when will the Load shedding end?

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