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Pakistan Turns to China in Energy Binge

beijingwalker

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Pakistan Turns to China in Energy Binge
By
SAEED SHAH
Dec. 18, 2016 7:00 a.m. ET


KARACHI, Pakistan—When Prime Minister Nawaz Sharif came to office in 2013, rolling power outages across the country were plunging homes and businesses into darkness for up to 12 hours a day.

Now the Pakistani leader is betting on a $21 billion Chinese-backed splurge on energy projects to boost the economy—and his re-election bid.

More than 10,000 Chinese workers are now building at least 10 partly Beijing-financed energy projects across Pakistan that are set to grow the country’s energy output by 60% within two years in the first major boost to supply in two decades.Mr. Sharif’s government plans to inaugurate a nuclear plant this month and a pipeline network in January that will carry large-scale gas imports upcountry.

“Never in the history of Pakistan has there been such a big package of electricity plants in the pipeline,” said Syed Akhtar Ali, in charge of energy at the Planning Commission, the ministry tasked with long-term development.

Mr. Sharif’s promise to solve the electricity crisis propelled him to office at a time when the energy deficit was knocking some 2 percentage points off growth, economists say, stifling industry and leaving school children to study by candlelight.

Pakistan’s economic growth has risen to almost 5% annually under Mr. Sharif’ and his government set a 7% target for the years ahead. That, his government hopes, will boost the moribund private sector, reduce unemployment and provide youth with more alternatives to extremism.

The energy plan is a centerpiece of that economic aspiration. Mr. Sharif is racing to fulfill his pledge and become the first incumbent to be re-elected in a country whose voters—or the interventionist military—have long ousted its leaders for their poor performance. Mr. Sharif, who led Pakistan twice before in the 1990s, hasn’t previously even completed a term in office.

“Electric power is going to be the swing factor in the election,” said Shahid Khaqan Abbasi, the minister for petroleum. “If we don’t deliver on power, we won’t be seen as having delivered.”


Mr. Sharif’s plan depends heavily on China, which is translating its long-term strategic ties with Pakistan into an economic partnership, part of a broader infrastructure push across Eurasia. China is financing many plants as commercial investments. But to expedite projects, the Pakistani government is funding some power stations in the run up to the election, including three gas-fired plants in Mr. Sharif’s home province of Punjab. The eventual aim is to more than double Pakistan’s current output of around 16,000 megawatts.

By comparison, Washington’s multibillion-dollar civilian aid program for Pakistan has been far less ambitious, adding 1,000 megawatts to the country’s power generation in recent years by enhancing existing power stations.

The plan is to add 10,000 megawatts of the new China-backed infrastructure, a mixture of coal, gas and hydro electricity, by early 2018, months before elections, at a cost of $21 billion. The schedule is tight. The massive amounts of natural gas and coal needed for the plants require an extensive delivery system of ports, pipelines and railways. The country also needs to upgrade its power distribution network to be able to carry the extra electricity.

“My concern is that gaps in longer term planning, including much needed structural, regulatory and market reforms, will once again fall by the wayside in the euphoria of having achieved a temporary electricity supply surplus,” said Jamil Masud, a partner at Hagler Bailly Pakistan, an energy consultancy,

The projects could become a political issue. The Chinese-financed plants enjoy a generous return guaranteed by Islamabad. Less highly populated provinces complain that Mr. Sharif’s Punjab has scooped an unfair share of the projects. Beyond the election, billions of dollars of more Chinese power projects are also planned.

At Karachi’s Port Qasim, a $2 billion coal-fired plant is taking shape. After only 1.5 years under construction, one 400-foot high cooling tower is up and the second is almost complete. The hulking metal frames for the boilers are in place and a jetty for imported coal is taking shape. Around 4,000 people work on the site, 24 hours a day—half of them Chinese workers who aren’t allowed to step outside its boundary.

On the other side of the port, a massive tanker ship serves as a terminal for liquefied natural gas imports, which are piped across Pakistan. Three more terminals are planned by the government.

The Chinese hope that, over time, greater economic success for its Pakistani ally will act as a source of stability and help to de-radicalize society, said Andrew Small, author of The China-Pakistan Axis.

“If you have a more normalized Pakistani economy and closer economic linkages within the region, this will at least mitigate some of the long standing conflictual tendencies that exist there,” he said.

http://www.wsj.com/articles/pakistan-turns-to-china-in-energy-binge-1482062404
 

Mo12

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May 8, 2011
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Financed by China and workers from China, it will be run by Chinese, some profits will go back to China.

China are really doing a good job in Pakistan

The only thing that is related to Pakistan is that its in Pakistan only.

India needs to learn from China, as we aspire to be like them.
 

beijingwalker

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One of my friends just came back to China from Pakistan for vacation, he works in China railway group. This report is very true, they are not allowed to leave their compound alone and it's like serving prison terms working there, but they do get paid much more than working in China. It's optional, you can refuse to go, those who go there are for good money, they also have projects in Iran and Egypt, he told me if you have no choice and have to go, Pakistan would be their favorite cause people there are very friendly to the Chinese people
 

xyxmt

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Financed by China and workers from China, it will be run by Chinese, some profits will go back to China.

China are really doing a good job in Pakistan

The only thing that is related to Pakistan is that its in Pakistan only.

India needs to learn from China, as we aspire to be like them.
:rofl:
 

AUz

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Constructing energy projects isn't the only issue here.

We need long term overhaul. Our distribution networks SUCKS!!!

Our tranmission lines still use SILVER wiring! Government should make massive investments and replace silver with copper and other efficient wires--so we don't waste electricity!

Plus, "surplus" for few years wouldn't cut. We need to plan DECADES ahead now. So we NEVER face such gruesome short fall again.

Hopefully our policy makers are sincere this time and have all these aspects in mind.

Lets go baby! :D
 

New World

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Financed by China and workers from China, it will be run by Chinese, some profits will go back to China.

China are really doing a good job in Pakistan

The only thing that is related to Pakistan is that its in Pakistan only.

India needs to learn from China, as we aspire to be like them.
Do you have any problem with it.. use some burnol.
 

somebozo

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Financed by China and workers from China, it will be run by Chinese, some profits will go back to China.

China are really doing a good job in Pakistan

The only thing that is related to Pakistan is that its in Pakistan only.

India needs to learn from China, as we aspire to be like them.
Thats what all business is about...repatriation of profits on foreign investment is not a crime..and it is taxed as well..

Our tranmission lines still use SILVER wiring! Government should make massive investments and replace silver with copper and other efficient wires--so we don't waste electricity!
Overhead lines always use high purity aluminium (so called silver) because...

It reduces weight..less risk of theft..copper is highly valuable and gets stolen easily..inefficiency of aluminium is partly offset by the fact that transmission is made at high voltage and low amperes..

One of my friends just came back to China from Pakistan for vacation, he works in China railway group. This report is very true, they are not allowed to leave their compound alone and it's like serving prison terms working there, but they do get paid much more than working in China. It's optional, you can refuse to go, those who go there are for good money, they also have projects in Iran and Egypt, he told me if you have no choice and have to go, Pakistan would be their favorite cause people there are very friendly to the Chinese people
It is because most of the Chinese companies are working in remote regions where warlords rule the land and there is very high risk of kidnapping for ransom and extortion.....as foreigners are ripe target where high value money can be made..I have some European friends working on a gas field with Italian company and they have to live in such jail like conditions too...
 

AUz

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Financed by China
And we thank them :D Jealous much? :lol:

and workers from China,
Wrong. Majority of people working on CPEC projects are Pakistanis (labor+technical+engineers+managers etc). Chinese only have few thousand of their staff working on CPEC projects worth $50 billion+ (since it's a Sino-Pak agreement, Chinese will be present, like duh?).

it will be run by Chinese, some profits will go back to China.
Again wrong. Run by Pakistanis AND Chinese as joint operations. You don't believe ENTIRE energy houses will be completely run and operated by ALL chinese workforce, do you? LOL

And yes, Chinese hope to take back profits just like every single foreign investment entity takes back profits from india.

What's so surprising here?

China are really doing a good job in Pakistan
Offcourse, Pakistani-Chinese strategic partnership is changing the whole dynamics of this region for the benefit of Pakistan (first and foremost) and China.

Bunch of hindus are left in dust again, I heard :cheers:

The only thing that is related to Pakistan is that its in Pakistan only.
Or they fact that Pakistan is about to overcome its energy shortage and would lay down the infrastructural base for industrialization which india won't be able to do for itself in DECADES to come (unless U.S becomes as generous as China and decides to invest $1 trillion AT ONCE in a massive project interlinking indian cities, building new ports, upgrading country wide railways, and building energy projects in such scope that india becomes a surplus energy producer. BUT, indians are too irrelevant to ever attract such a strategic partnership from another country).

:)

India needs to learn from China, as we aspire to be like them.
Sure.....:lol:
 

singlefighter

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May 11, 2016
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Constructing energy projects isn't the only issue here.

We need long term overhaul. Our distribution networks SUCKS!!!

Our tranmission lines still use SILVER wiring! Government should make massive investments and replace silver with copper and other efficient wires--so we don't waste electricity!

Plus, "surplus" for few years wouldn't cut. We need to plan DECADES ahead now. So we NEVER face such gruesome short fall again.

Hopefully our policy makers are sincere this time and have all these aspects in mind.

Lets go baby! :D
Short term basis all we know govt is moving to coal fire powerplants and some hydroelectric and some wind and solar energy projects.and in long term govt is looking towards only hydroelectric and nuclear,e.g K2 and K3 having 1100 MW each chashma 5 plan for also 1100 and Diamir bhasha 4300Mw and kohala 1100 MW and Bonji Dam 7000Mw also on plans and also so many other hydel on papers insha Allah this time future will be change
 

ghazi52

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Pakistan Turns to China in Energy Binge



KARACHI, Pakistan—When Prime Minister Nawaz Sharif came to office in 2013, rolling power outages across the country were plunging homes and businesses into darkness for up to 12 hours a day.

Now the Pakistani leader is betting on a $21 billion Chinese-backed splurge on energy projects to boost the economy—and his re-election bid.

More than 10,000 Chinese workers are now building at least 10 partly Beijing-financed energy projects across Pakistan that are set to grow the country’s energy output by 60% within two years in the first major boost to supply in two decades.Mr. Sharif’s government plans to inaugurate a nuclear plant this month and a pipeline network in January that will carry large-scale gas imports upcountry.

“Never in the history of Pakistan has there been such a big package of electricity plants in the pipeline,” said Syed Akhtar Ali, in charge of energy at the Planning Commission, the ministry tasked with long-term development.

Mr. Sharif’s promise to solve the electricity crisis propelled him to office at a time when the energy deficit was knocking some 2 percentage points off growth, economists say, stifling industry and leaving school children to study by candlelight.

Pakistan’s economic growth has risen to almost 5% annually under Mr. Sharif’ and his government set a 7% target for the years ahead. That, his government hopes, will boost the moribund private sector, reduce unemployment and provide youth with more alternatives to extremism.

The energy plan is a centerpiece of that economic aspiration. Mr. Sharif is racing to fulfill his pledge and become the first incumbent to be re-elected in a country whose voters—or the interventionist military—have long ousted its leaders for their poor performance. Mr. Sharif, who led Pakistan twice before in the 1990s, hasn’t previously even completed a term in office.

“Electric power is going to be the swing factor in the election,” said Shahid Khaqan Abbasi, the minister for petroleum. “If we don’t deliver on power, we won’t be seen as having delivered.”

ENLARGE
Mr. Sharif’s plan depends heavily on China, which is translating its long-term strategic ties with Pakistan into an economic partnership, part of a broader infrastructure push across Eurasia. China is financing many plants as commercial investments. But to expedite projects, the Pakistani government is funding some power stations in the run up to the election, including three gas-fired plants in Mr. Sharif’s home province of Punjab. The eventual aim is to more than double Pakistan’s current output of around 16,000 megawatts.

By comparison, Washington’s multibillion-dollar civilian aid program for Pakistan has been far less ambitious, adding 1,000 megawatts to the country’s power generation in recent years by enhancing existing power stations.

The plan is to add 10,000 megawatts of the new China-backed infrastructure, a mixture of coal, gas and hydro electricity, by early 2018, months before elections, at a cost of $21 billion. The schedule is tight. The massive amounts of natural gas and coal needed for the plants require an extensive delivery system of ports, pipelines and railways. The country also needs to upgrade its power distribution network to be able to carry the extra electricity.

“My concern is that gaps in longer term planning, including much needed structural, regulatory and market reforms, will once again fall by the wayside in the euphoria of having achieved a temporary electricity supply surplus,” said Jamil Masud, a partner at Hagler Bailly Pakistan, an energy consultancy,

The projects could become a political issue. The Chinese-financed plants enjoy a generous return guaranteed by Islamabad. Less highly populated provinces complain that Mr. Sharif’s Punjab has scooped an unfair share of the projects. Beyond the election, billions of dollars of more Chinese power projects are also planned.

At Karachi’s Port Qasim, a $2 billion coal-fired plant is taking shape. After only 1.5 years under construction, one 400-foot high cooling tower is up and the second is almost complete. The hulking metal frames for the boilers are in place and a jetty for imported coal is taking shape. Around 4,000 people work on the site, 24 hours a day—half of them Chinese workers who aren’t allowed to step outside its boundary.

On the other side of the port, a massive tanker ship serves as a terminal for liquefied natural gas imports, which are piped across Pakistan. Three more terminals are planned by the government.

The Chinese hope that, over time, greater economic success for its Pakistani ally will act as a source of stability and help to de-radicalize society, said Andrew Small, author of The China-Pakistan Axis.

“If you have a more normalized Pakistani economy and closer economic linkages within the region, this will at least mitigate some of the long standing conflictual tendencies that exist there,” he said.


http://www.wsj.com/articles/pakistan...nge-1482062404
 

Sugarcane

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One of my friends just came back to China from Pakistan for vacation, he works in China railway group. This report is very true, they are not allowed to leave their compound alone and it's like serving prison terms working there, but they do get paid much more than working in China. It's optional, you can refuse to go, those who go there are for good money, they also have projects in Iran and Egypt, he told me if you have no choice and have to go, Pakistan would be their favorite cause people there are very friendly to the Chinese people
That's unfortunate but you know CPEC have given real heart burn to some and they are trying to sabotage by attacking the foreign workers especially the Chinese. I hope situation will become better with improving internal security.
 

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