ISLAMABAD: Three Chinese electric power firms have agreed to set up 700MW photovoltaic power project in M-3 and Allama Iqbal Industrial City of the Faisalabad Industrial Estate Development and Management Company (FIEDMC).

The investment has been estimated to be $630 million, and as per the memorandum of understanding, Chinese companies will finance it while FIEDMC will provide land on lease or equity.

The memorandum of understanding was signed between FIEDMC, Henan Zhonghui Electric Power Engineering and Consulting Company and Power China Jiangxi Electric Power Construction Company, a subsidiary of Power China.

According to Board of Investment officials, the project will be completed in three phases as per the electricity demand of the special economic zones. FIEDMC will provide the estimated power requirement for both the SEZs, along with the status of infrastructure inside and outside. It is planned to adopt (build-own-lease-transfer) cooperation method which would be a first in Pakistan.

Officials said the MoU would pave way for private SEZs to have their own captive power plants for uninterrupted, affordable, and sustainable supply.

It is worth mentioning that the SEZ Act, 2012 also entitles the SEZ developers to establish their own captive power generation facility.

Published in Dawn, July 17th, 2020