Pakistan, China drop 5 CPEC energy projects

[cocomo]

In-depth analysis reveals plans technically unfeasible, New projects to be included in list
May 19, 2017

ISLAMABAD - Pakistan and China agreed to revise and update the list of CPEC Energy Cooperation Project, removing 5 pending projects with the combined capacity of 3470 Megawatt, it is learnt reliably here Thursday.


In February it was agreed between the Chinese and Pakistani experts to drop five projects, mostly coal power projects, from the CPEC energy list and finally in the recent One Road One Belt (OBOR) forum it was formally dropped from the list, official sources told The Nation.

The projects which were dropped includes Muzaffargarh Coal Power Project (1,320MW), Salt Range Mine Mouth Power Project (300MW) including mining, Gaddani Power Park (1,320MW), Sunnec Wind Farm (50MW), Chichoki Mallian Combined-cycle Power Plant (525MW). Sources said that these projects were analyzed in-depth by energy experts from both sides and it was decided to remove these projects by declaring them technically unfeasible.

However the source said that with the removal of these projects the CPEC installed capacity agreed under the previous energy agreement will remain unchanged. More projects are expected to be inducted soon based on feasibility and mutual agreement of experts from both sides.

The Punjab government was planning to construct two coal-fired projects with the combined generation capacity of 2,640MW in Rahim Yaar Khan and Muzaffargarh districts of Punjab. Both the projects are part of CPEC projects and Punjab Power Development Board (PPDB) is the supervising agency. Similarly 525MW thermal power plant at Chichoki Mallian was first initiated in 2008 during the tenure of PPP government with the cost of $354.5 million, however it was never materialised. After the current government came into power it was included in the CPEC energy project list.

In the progress review meeting of the CPEC projects, held in February, the Punjab government was pursing the federal government to include the coal projects in the CPEC umbrella projects. The main logic presented by the Punjab government is that India’s share of energy from coal amounts to 70,000MW and Europe generates 60 percent of its energy using coal, and 65 percent electricity generated in the world is generated from coal. The source said that adding unfeasible projects to the CPEC list will affect the financial health of the country. The updated list of the projects is now available on the CPEC website.

When asked that how the capacity of CPEC projects will not affect from the decision, the source said new projects will be added to the portfolio and majority of them will be on Hydro electric generations. The Pakistani and Chinese authorities in the last JCC held in China agreed to include hydro power projects, in the northern Indus region, in the CPEC umbrella projects. Hydle is much cleaner and cheaper source of energy and an MOU to evaluate the feasibility of these projects has already been signed between the two countries.



This news was published in The Nation newspaper. Read complete newspaper of 19-May-2017 here.
source: http://nation.com.pk/national/19-May-2017/pakistan-china-drop-5-cpec-energy-projects

 

[Khanate]

Gaddani Power Park

A terrible idea that refuses to die. It was "cancelled" in 2015, "abandoned" in 2016, and now declared "technically unfeasible" in 2017. I'm sure we'll be talking about it in 2018 just to add another adjective.

Muzaffargarh Coal Power Project

Another terrible idea that has been rejected from ADB (2013) to Technopromexport (2015) and still refuses to die because the conversion is well, "technically unfeasible".

Salt Range Mine Mouth Power Project

Another bad project that should never have seen daylight and is being talked about in 2017. The economics of the project, 300MW coal-powered plant, just don't add up. It was rejected in 2014, again in 2015 and 2016 yet here it is in 2017.

new projects will be added to the portfolio and majority of them will be on Hydro electric generations

Expected.

 

[Aasimkhan]

We should focus on nuclear power, coal is deadly for environment especially the already grave situation of winter smog will be increased manyfold.

 

[Kabira]

When asked that how the capacity of CPEC projects will not affect from the decision, the source said new projects will be added to the portfolio and majority of them will be on Hydro electric generations.

This is great actually, Pakistan doesn't need more plants based on imported coal. Thar coal should be used to produce electricity. And start building big hydro projects which take at least 8-10 years.

 

[Imad.Khan]

Pakistan has enough hydro power potential to satisfy all of Pakistan's energy needs, but the problem is that it takes a long time to make, so no government has focused on them as they prefer projects that they can showcase before the next election.

 

[Kabira]

Pakistan has enough hydro power potential to satisfy all of Pakistan's energy needs, but the problem is that it takes a long time to make, so no government has focused on them as they prefer projects that they can showcase before the next election.

Now is perfect time though. By next year load shedding will end but work on big hydro dams should star now and complete by 2030 under CPEC when the demand will again have increased by quite a lot. Actually Bhasha and Dasu should be completed by 2026.

Apart from clean energy and saving foreign exchange, G-B government will get billions every year from dams. ghar ka paisa ghar main hi rahe gha, win win

 

[Imad.Khan]

Now is perfect time though. By next year load shedding will end but work on big hydro dams should star now and complete by 2030 under CPEC when the demand will again have increased by quite a lot.

Apart from clean energy and saving foreign exchange, G-B government will get billions every year from dams. ghar ka paisa ghar main hi rahe gha, win win

Agreed, maybe you should raise this with your leaders

Read this article which states Pakistan has 100,000MW potential of hydro power
https://tribune.com.pk/story/996382/hydroelectric-power-pakistan-has-100000mw-production-potential/

and as per these atleast 60,000MW potential

https://www.researchgate.net/publication/268224059_Hydropower_Potential_in_Pakistan
http://www.ppib.gov.pk/HYDRO.pdf

 

[Kabira]

Agreed, maybe you should raise this with your leaders

Read this article which states Pakistan has 100,000MW potential of hydro power
https://tribune.com.pk/story/996382/hydroelectric-power-pakistan-has-100000mw-production-potential/

I don't have direct contact with Hazrat Shahbaz Sharif. But if they can convince China to include dams in CPEC which looks like is the case then by 2030 Dasu, Bhasha, Bunji etc will be build.

This will be bigger feat then even CPEC. Remember dams will cost $50 billion and take 10 years. Unlike power plants which are up and running in 3 years. China is taking huge risk by investing in dams which are long term projects and take decades to recover investment. Only Nawaz can convince them because if PPP was ruling then they wouldn't have even agreed with CPEC.

 

[simple Brain]

I believe it happened because China agreed to build massive dams in Pakistan, and why to waste money on coal powered power plants when you have an alternative of a hydro and clean renewable energy.

Also, since world bank pledges $238 million for wind power alone China would have thought that it should utilize this money somewhere else as in accordance to the CPEC agreements.

https://www.dawn.com/news/1332761

 

[Talwar e Pakistan]

It was pretty obvious that a couple projects would be dropped after the announcement of making the massive 40k MW dams.

 

[Advocate Pakistan]

I can't see any dams going beyond "studies" just because the Sindhi jageerdars want 160m of mud to be removed to access Thar Coal.

 

[Mysterious Soilder]

HYDRO ELECTRIC POWER PLANT must be included for future of Pakistan

 

[ziaulislam]

A terrible idea that refuses to die. It was "cancelled" in 2015, "abandoned" in 2016, and now declared "technically unfeasible" in 2017. I'm sure we'll be talking about it in 2018 just to add another adjective.

why was it terrible idea?
coal by far is cheapest and integrated with a port is much better than being transported via railways
problem was distribution line, you cant build a plant without distribution set up, which govt refused to fund(required 2B $)

I believe it happened because China agreed to build massive dams in Pakistan, and why to waste money on coal powered power plants when you have an alternative of a hydro and clean renewable energy.
https://www.dawn.com/news/1332761

because hydro takes 10 years and coal 36 months
then you require a baseline load generation that hydros might not be able to give you e.g a 4000MW plant will porduce only 1000mW at base load

I don't have direct contact with Hazrat Shahbaz Sharif. But if they can convince China to include dams in CPEC which looks like is the case then by 2030 Dasu, Bhasha, Bunji etc will be build.

This will be bigger feat then even CPEC. Remember dams will cost $50 billion and take 10 years. Unlike power plants which are up and running in 3 years. China is taking huge risk by investing in dams which are long term projects and take decades to recover investment. Only Nawaz can convince them because if PPP was ruling then they wouldn't have even agreed with CPEC.

i still believe that CPEC is Chinese project and nothing to do with nawaz its part of their OBOR initiative which involves investment in Bangladesh, Myanmar and other countries
so why now, its because china just had it muscles flexed now

look at their GDP in 2005(1.7T, less than what india is now) and than now, its a 7x increase to 11t

 

[Khanate]

why was it terrible idea?
coal by far is cheapest and integrated with a port is much better than being transported via railways
problem was distribution line, you cant build a plant without distribution set up, which govt refused to fund(required 2B $)

Read: 6,600MW Gadani power project put on back burner (Dawn)

 

[Secret Service]

there is no benefit of coal power plants. Focus should be on Hydro and nuclear projects.