ISLAMABAD, May 4: The Pakistan Atomic Energy Commission (PAEC) and the China National Nuclear Corporation (CNNC) signed a contract for the 300 MW Chashma nuclear power plant Unit-2 (C-2) at the Prime Minister's House here on Tuesday.

The ceremony was witnessed by Prime Minister Mir Zafarullah Khan Jamali and a high-ranking Chinese delegation. The contract document was signed by Parvez Butt, the PAEC chairman, and Kang Rixin, the CNNC president.

The Chinese delegation was led by Zhang Huazhu, Vice Minister, Commission of Science, Technology and Industry for National Defence (COSTIND) and Chairman China Atomic Energy Authority (CAEA).

Earlier a memorandum of understanding (MoU) was signed on March 24, 2003 in a ceremony after the formal negotiations for the second nuclear power plant at the Chashma were finalized.

With the signing of C-2 project, the PAEC has achieved yet another landmark and this project will be an important milestone in the historical relations between Pakistan and China.

Pakistan is currently going through an important phase of development and with increasing energy demand, the need for providing access to energy in appropriate quantities and at competitive prices could hardly be overemphasised.

Pakistan's first nuclear power plant at Karachi, KANUPP, has been generating electricity safely for more than three decades. This is a significant achievement, considering that the supplier country withdrew technical support as early as 1976.

Recently, overhaul, upgradation and refurbishment activities have been carried out at KANUPP, resulting in the successful restart and extension of its design life by about 15 years. The Chasma Nuclear Power Plant (CHASNUPP) site is a multi- unit site. During the construction of C-1, provision was made to accommodate C-2 as well.