300MW Gwadar power plant project: Crucial note not forwarded to PM

ISLAMABAD: Secretary to prime minister has reportedly refused to place SAPM’s note on the 300-MW Gwadar Project before the Prime Minister with the justification that comments of Power Division should be obtained on this proposal, well informed sources told Business Recorder.

SAPM Zafar ud Din Mahmood, in his note to Prime Minister, stated that considering the availability of power as a key to any industrial development, a 300-MW coal-fired power plant was listed as number one in the priority list of CPEC projects. A Chinese investor has been making consistent efforts since 2016 to execute the project and has already invested more than $ 20 million in purchase of land, completion of various feasibilities, approvals, etc., but construction had not started due to various reasons.

He said, firstly the developer/ investor was told to base it on LNG instead of imported coal and now he is told either to convert it to local Thar coal, relocate it to Thar or change it to solar or wind, etc. He further contended that such suggestions are being made by different ministries without any serious consideration about the availability of fuel or viability of the project thereby causing delay and unnecessary confusion about “our seriousness.”

The SAPM further stated that keeping in view the overall development, Chinese Government has invested close to $ 800 million in various projects but due to inadequate supply of electricity, lack of water and other infrastructure impediments and above all security issues, industrial development at Gwadar is ‘zero’.

PM terms Thar power project ‘game-changer’

He noted that the port is already in operation, Gwadar East bay Expressway and technical/ vocational training centres had been completed, and hospital and airport are expected to be completed in the next 3-6 months, adding that all these projects have been constructed to support and facilitate the investors at Gwadar. Without industrial development, this infrastructure development will remain grossly underutilized and unsustainable, incurring huge operational and maintenance costs, which will become a permanent liability for Government of Pakistan.

“It is important to take a carefully considered and immediate decision about the construction of power plant; otherwise it will become a serious international issue for Belt and Road Initiative (BRI), CPEC and Gwadar development. The decision must consider all options and overall development of Gwadar and CPEC,” he added.

Mahmood in his note suggested that Prime Minister may wish to constitute a Committee to consider this critical and strategically important project in consultation with all stakeholders including Ministries of Energy, Planning, Development & Special Initiatives and decide about its implementation on priority basis.

Secretary to PM has; however, not presented the note to the PM, saying that first comments of Power Division be obtained and then the summary be submitted to PM through the Ministry of Planning, Development and Special Initiatives.

Copyright Business Recorder, 2022