• Monday, September 24, 2018

No more energy projects based on imported coal

Discussion in 'Infrastructure & Development' started by ghazi52, Sep 14, 2018.

  1. ghazi52

    ghazi52 ELITE MEMBER

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    No more energy projects based on imported coal

    ISLAMABAD: Pakistan has decided to abandon future energy projects based on imported coal, exploring mode of financing for major infrastructure projects like $09 billion Mainline (ML-1) for up-gradation of railway on Built-Operate and Transfer (BOT) basis instead of getting loans and allowing third party countries for participating into Gwadar development and special economic zones under much trumpeted China Pakistan Economic Corridor (CPEC).

    The decision of abandoning imported coal projects will result into stopping some projects being planned at imported coal, including Rahim Yar Khan; however, the government also decided to continue Thar Coal projects which are going to utilise domestic resources of coal.

    However, the Gwadar Coal Project which is planned at imported coal may continue because of its strategic importance and entering into advance stage of planning and execution. The last PML-N led government had also put Rahim Yar Khan coal power project onto list of long term projects, but, now, the PTI led regime finally decided to exclude it from the list of CPEC projects.

    “We have decided to establish new Joint Working Group (JWG) for social economic development where projects related to education, health, vocational training and capacity building will be firmed up. We also decided to conduct study for exploring new mode of financing in order to undertake future projects on BOT basis instead of Engineering Procurement Contract (EPC) by securing loans,” Federal Minister for Planning Makhdum Khusro Bakhtyar said in his maiden press briefing after chairing 56th progress review meeting on CPEC projects here on Thursday. Chinese Ambassador in Pakistan and representatives of different federal ministries and provinces also attended the review meeting.

    The minister, who himself remained part of treasury benches in last five years, lambasted the last PML-N led government for construction of motorways and roads with cost of $6 billion and orange line project at $2.5 billion but put ML-1 project with estimated cost of $9 billion into backburner.

    He said that the government decided to abandon future energy projects based on imported coal but the ongoing projects like Sahiwal and Port Qasim would continue to function and would remain operationalised. The energy mix, he said, would be changed as the last PML- N led government had focused only on power generation but ignored transmission and distribution that resulted into piling up of monster of circular debt. The government did not focus on transmission and distribution system of power sector causing surfacing of circular debt which was also linked with establishment of revolving fund under CPEC projects.

    To a query regarding possibility of re-negotiation with China to prolong repayment period under CPEC, the minister said that China executed $6 billion infrastructure projects through loans out of total outstanding foreign loan touching in the range of $95 billion and the government would meet all financial obligations.

    Now the government, he said, wants to explore new mode of financing for construction of viable projects on BOT basis instead of securing loans and EPC mode, the minister added.

    The minister was astonished on negative narrative started appearing in international and local media soon after visit of China’s Foreign Minister to Pakistan. He said that the government took important decisions related to CPEC, including the ongoing projects of energy and infrastructure would be completed under early harvest programme. The industrial cooperation, he said, would be boosted because manufacturing base had shrunk in the country. He said that the last government wasted five years whereby it could not focus on development of Gwadar and ML-1.

    The government, he said, would open up for investments in Gwadar by third party countries. He said that Pakistan was infrastructure deficient and required $200 billion for meeting financing requirements. He said that it would be viable to hire consultant by spending $3 million to $4 million for devising best design and execution plan for projects like ML-1 with estimated cost of $9 billion. He said that the catch-up mode compromised bargaining position so now studies would be done before visiting China in November or December this year.
     
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  2. Fawadqasim1

    Fawadqasim1 FULL MEMBER

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    Zabardast I have not wasted my vote.

    Please watch the last few minutes of this video
     
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  3. Samlee

    Samlee SENIOR MEMBER

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    What They Should Do Is Close The Imported Oil Based Power Plants And Replace Them With Coal Based Ones
     
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  4. Imran Khan

    Imran Khan PDF VETERAN

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    import oil and gas power stations are ok and coal is banned ?
     
  5. Fawadqasim1

    Fawadqasim1 FULL MEMBER

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    No sir they are not ok the are killing us but we should not install new ones. Based on imported
    fuel. Coal or otherwise.
     
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  6. Imran Khan

    Imran Khan PDF VETERAN

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    i thought coal is cheap to import its right ?
     
  7. Kambojaric

    Kambojaric SENIOR MEMBER

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    Natural gas (imported in the form of LNG) powered plants emit far less CO2 than oil and coal powered plants. If domestic coal output can match the demand for current operating coal power plants and good LNG deals can be sought from abroad, then that is good news for both the wallet and the enviroment.

    "Natural gas is a fossil fuel, though the global warming emissions from its combustion are much lower than those from coal or oil.

    Natural gas emits 50 to 60 percent less carbon dioxide (CO2) when combusted in a new, efficient natural gas power plant compared with emissions from a typical new coal plant".

    https://www.ucsusa.org/clean-energy...vironmental-impacts-of-natural-gas#references

    That is why new LNG terminals are being created in Pakistan. The second one opened last year and a third one is being set up as well.

    https://www.thenews.com.pk/print/29...g-up-3rd-lng-terminal-as-gas-demand-increases
     
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  8. alee92nawaz

    alee92nawaz FULL MEMBER

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    Good decision. Chinese are giving us loans so that we can buy stuff from them from that money ... such irony.
     
  9. Imran Khan

    Imran Khan PDF VETERAN

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    we were destroyed 18 hours was load shedding our economy doomed our industry shut down or moved to neighboring coal powered countries and still we are worry about CO2 ?even we have 0 CO2 we will be most polluted as most polluted countries are our next door and pollution did not stop at borders .
     
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  10. Dark-Destroyer

    Dark-Destroyer FULL MEMBER

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    IP Gass pipe line should be renegotiated and implemented
     
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  11. Hakikat ve Hikmet

    Hakikat ve Hikmet SENIOR MEMBER

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    A good move!!! CPEC deals aren't commandments written on stone in the Mount Sinai!!! It needs to be dynamically modifiable as the situation/demand changes as long as the "big picture", which is anyway getting clearer by each passing day, isn't lost!!!
     
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  12. Samlee

    Samlee SENIOR MEMBER

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    Yes B'Coz Demand Is Falling Coal Is Getting Cheap
     
  13. Pakistansdefender

    Pakistansdefender FULL MEMBER

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    This man is the biggest fraud in the history of pakistan.
    Just has a luck of being at top by polishing the powerful people's egos and boots, and taking the credit of all the hardworking people under him.
     
  14. Kabira

    Kabira ELITE MEMBER

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    70% of electricity is used in punjab alone, is Sindh and co going to blackmail punjab like in case of gas even after getting paid for it? We must remember these people have small hearts.
     
  15. Fawadqasim1

    Fawadqasim1 FULL MEMBER

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    These people are our fellow countrymen you should be banned and they are going to sell it to you in rupees not in us dollars.
     
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