Ahsan Iqbal: Debunking myths on CPEC

[hussain1975]

cpec is game changing project for whole of world, china pakistan will link south asia, middle east, central asia, africa, china will build 1st world infrastructure in pakistan this will ensure 24 hours electricity and road/rail connectivity this will push pakistan growth rate to double digits,

 

[wiseone2]

Old IPP's constructed in the 90's during peoples party era runs on furnace oil, now expensive and not readily available. Also the decline in production capacity is there, barely running on 30% capacity like HUBCO and many more.

The new power plants are a mix of RLNG, Coal, imported coal and local Thar coal, Hydel power, Wind energy projects, Pakistan now reaching 2000 MW's in wind energy production. Solar, Bahawalpur solar plant will have 1000 MW capacity, but the actual production never gets to optimum level in solar energy.

Then there is the newly inaugurated CHASHMA IV, 350 MW'ts, two 1100x2 MW's nuclear power plants near old KANUPP, so it is always better to have a mix of energy production resources than to rely on one source.

If interested check these power production updates...with new pictures.

http://www.skyscrapercity.com/showthread.php?t=1730245&page=16

http://www.skyscrapercity.com/showthread.php?t=1932434&page=4

http://www.skyscrapercity.com/showthread.php?t=1905967&page=3


Wind power projects...
http://www.skyscrapercity.com/showthread.php?t=1957491&page=5


Bahawalpur solar park, 1000 MW's
http://www.skyscrapercity.com/showthread.php?t=1685017&page=20

Chashma nuclear complex with 5x350 MW's plants.
http://www.skyscrapercity.com/showthread.php?t=1947531&page=5

Bhikki power plants.
http://www.skyscrapercity.com/showthread.php?t=1932100&page=8


Karachi 1100x2 MW's hasn't got updated. Also there are many Hydel projects under construction...

all the power projects under CPEC are fossil fuel based. Where will the coal come from ?

 

[N.Siddiqui]

all the power projects under CPEC are fossil fuel based. Where will the coal come from ?

There are Hydro electric power projects as well like the Dasu dam 4350 MW's project, Bhasha dam, still in initial stages. Neelum Jehlum is 90% completed. Also many Wind power project, about 2000 MW's and more are included in CPEC. Solar power Bahawalpur is also there of 1000 MW's.

Coal will be imported for 3 big projects like Sahiwal, and port Qasim coal power projects, local Thar coal for Hubco and Engro coal power project.


DASU dam in initial stages.
http://www.skyscrapercity.com/showthread.php?t=1763018&page=2

Neelum Jehlum Hydro power 960 MW's.
http://www.skyscrapercity.com/showthread.php?t=1733265&page=14

Diamer Bhasha...now expanded into Indus river cascade project worth many billion USD.
http://www.skyscrapercity.com/showthread.php?t=749728&page=12

Wind power..
http://www.skyscrapercity.com/showthread.php?t=1957491&page=5

all the power projects under CPEC are fossil fuel based. Where will the coal come from ?

Neelum Jehlum Hydro power....

 

[wiseone2]

There are Hydro electric power projects as well like the Dasu dam 4350 MW's project, Bhasha dam, still in initial stages. Neelum Jehlum is 90% completed. Also many Wind power project, about 2000 MW's and more are included in CPEC. Solar power Bahawalpur is also there of 1000 MW's.

Coal will be imported for 3 big projects like Sahiwal, and port Qasim coal power projects, local Thar coal for Hubco and Engro coal power project.


DASU dam in initial stages.
http://www.skyscrapercity.com/showthread.php?t=1763018&page=2

Neelum Jehlum Hydro power 960 MW's.
http://www.skyscrapercity.com/showthread.php?t=1733265&page=14

Diamer Bhasha...now expanded into Indus river cascade project worth many billion USD.
http://www.skyscrapercity.com/showthread.php?t=749728&page=12

Wind power..
http://www.skyscrapercity.com/showthread.php?t=1957491&page=5



Neelum Jehlum Hydro power....

It is easy to make money when you have a license to import coal and sell the power at a fixed rate to Pakistani utility. You do not need China. Pakistani Americans would gladly finance such a project. The ROI will be in dopuble digits

 

[N.Siddiqui]

It is easy to make money when you have a license to import coal and sell the power at a fixed rate to Pakistani utility. You do not need China. Pakistani Americans would gladly finance such a project. The ROI will be in dopuble digits

Yes in many coal projects China is only involved in the engineering and mechanical side. The financial close, admin. buying and selling is all with local IPP's, Pak entrepreneurs, and also Pakistan government will buy the power. In some projects Chinese banks are investing with sovereign guarantees, like EXIM bank and IFC.

They have lended to Chinese construction companies with diff. names who are constructing many projects. So its is a mix and match. Contrary to the perception, in many power projects the mark up rate is low at 1.5-2%, coal power will be cheap, RLNG slightly higher rate...so on and so forth.

 

[wiseone2]

Yes in many coal projects China is only involved in the engineering and mechanical side. The financial close, admin. buying and selling is all with local IPP's, Pak entrepreneurs, and also Pakistan government will buy the power. In some projects Chinese banks are investing with sovereign guarantees, like EXIM bank and IFC.

They have lended to Chinese construction companies with diff. names who are constructing many projects. So its is a mix and match. Contrary to the perception, in many power projects the mark up rate is low at 1.5-2%, coal power will be cheap, RLNG slightly higher rate...so on and so forth.

I am fine with the power plants as long as details are in the public domain.
I would be concerned if the details of the IPP rates are hidden under the name of national security

 

[N.Siddiqui]

I am fine with the power plants as long as details are in the public domain.
I would be concerned if the details of the IPP rates are hidden under the name of national security

It is not as much hidden as it is contradictory and complex. With so many different factors, different fuel sources, many players involved, RLNG is imported from Qatar, the terminals are completed at port Qasim.

Also NEPRA fixes the power rates vis a vis production cost and profit. I've also read about lot of scams in coal exploration contracts in India....running into lacs of crores. In Pakistan right now coal power is a meager 1% of the total, will increase to about 13% or more with new projects in the national grid.

 

[wiseone2]

It is not as much hidden as it is contradictory and complex. With so many different factors, different fuel sources, many players involved, RLNG is imported from Qatar, the terminals are completed at port Qasim.

Also NEPRA fixes the power rates vis a vis production cost and profit. I've also read about lot of scams in coal exploration contracts in India....running into lacs of crores. In Pakistan right now coal power is a meager 1% of the total, will increase to about 13% or more with new projects in the national grid.

coal exploration is coal mining. That is a different ball game compared to power production/profit scenarios

 

[N.Siddiqui]

R

coal exploration is coal mining. That is a different ball game compared to power production/profit scenarios

Right...RLNG terminals is at port Qasim, adjacent to this oil terminal, the largest in Pakistan. Also Thar coal exploration video here.

SECMC is the company involved in local Thar coal mining. Engro is a local Pak conglomerate, now in coal power production as well, it is an FMCG company in Pakistan.