China offers $10-15bn investment in energy sector
ISLAMABAD: The Chinese are keen to invest $10 to $15 billion for the development of power sector in Pakistan.
Cao Guangjing, the head of Three Gorges Corporation, the Chinese state owned corporation dealing with construction of power infrastructure meeting with Federal Minister for Finance and Economic Affairs, Dr Abdul Hafeez Shaikh said his company desires to work closely with Pakistan for the development of energy sector.
The Federal Minister said this was a beginning of a new era of cooperation between Pakistan and China and we were looking forward to have a consensus on all issues including the problem of equity of all stakeholders of the Pakistan statecraft in this manner.
He briefed the Chinese delegation about the prevalent rules and laws for bidding in Pakistan and would ensure that bidding for the many projects should be made in a transparent manner.
He assured the delegation he would talk to the Law Division also to have a final word on it. He said he would have also words with Water and Power Divisions to have a considerate view on it.
The projects that were discussed in the meeting were Kohala Hydro Power, Bhunji, Bhasha, Dashu in Upper Indus Valley, and other Hydro Power projects in lower Indus valley.
He informed the delegation of the Government of Pakistan’s initiatives and resolve to have Chinese cooperation in the development of power sector and in this regard, he said, their offer has been discussed at length in the Economic Coordination Committee of the Cabinet meeting in the recent past.
He hoped the projects indicated by the Chinese Corporation would certainly be started with the same Chinese firm and added that only after the fulfillment of the procedural headways.
CTGPC signed an agreement with a private Pakistani firm, Associate Technologies (Private) Limited to invest $1.2 billion in 720 MW Karot Hydropower Project. The Karot project would be completed in four years and help Pakistan to overcome loadshedding problem.
It was for the first time that a Pakistan private company had signed an agreement with a state owned Chinese enterprise in the power sector.
The minister also offered Chinese Corporation to invest in the Thar Coal power project as well as large scale manufacturing of solar panels and wind energy turbines in the country.
Guanging said Karot Hydropower Project was a very important project and would help in resolving Pakistan’s energy problems. He said his corporation was looking for more investment in Pakistan.
China Three Gorges Project Corporation also offered to develop multi purpose hydro electric projects through direct financing model based on Public Private Partnership and boot.
Briefing the media, spokesperson to the President Farhatullah Babar said Three Gorges Project Corporation was already involved in a number of multi purpose hydro wind power projects in the country and offered to build more to permanently address the problems of power shortage in the country.
He said the ongoing Hydro electric projects being undertaken by the China Three Gorges Project Corporation include Karot, Taunsa, Kohala and Bunji hydro electric projects.
He said that Letter of interest for the Karot Hydero electric project which has 720 MW generation capacity has been issued and feasibility of the project has already been approved and the project is currently at tariff petition stage. He said MOU for the Taunsa hydro eclectic project with 120 MW generation capacity has been signed and the joint development agreement of the project will be signed this month.
He said Kohala hydro power project that will generate 1100 MW electricity was ready for tariff negotiations as the letter of interest of the project has been issued and the updated feasibility study already approved. Bunji hydro electric project another gigantic project being undertaken by the Three Gorges Project Corporation with 7100 MW generation capacity was ready for site survey as the MOU for the project was signed in august 2009.
Babar said ongoing wind projects included Karachi First Wind farm, Karachi Second Wind farm and Punjab Wind and Solar Projects are also at its advanced stages.
He said the President advised the federal government to consider tasking the China Three Gorges Project Corporation to also build a run of the river hydro project at Sukkur Barrage and asked the Water and Power Minister Syed Naveed Qamar to liaise with the stake holders and prepare project proposal within 60 days.
The President gave this advice when the briefing was informed that Joint Development agreement was due to be signed this month for the 120 Megawatt Taunsa Hydro electric project where the discharge was 10,000 cusecs and Chairman WAPDA stated that the discharge at Sukkur was over 12,000 cusecs.
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