The Private Power Infrastructure Board (PPIB) and Chinese company Gehzuoba is to ink a pact on Tuesday (today) for the setting up of four 660 MW coal-fired power plants at Gaddani with an investment of $3.5 billion. Ministry of Water and Power set up the Gadani Power Park under the aegis of the Pakistan Power Park Management Company Ltd (PPPMCL) for the purpose of establishing 10 660 MW power plants on imported coal.
The government set up the PPPMCL as a special purpose vehicle for dealing with 10 imported coal-fired projects that are expected to be completed by the end of 2018. The PPPMCL would act as the manager for the development of requisite infrastructure such as roads, electricity, residential areas and most importantly provision of water. On Monday, Prime Minister Nawaz Sharif said Pakistan will provide necessary safeguards to foreign investments and urged international companies to invest in Pakistan for best returns. He said this while meeting a delegation led by the President of State Grid Corporation of China (SGCC) Jia Zhiqiang that called on him at the PM Office.
The meeting was also attended by Minister for Water & Power Khawaja Muhammad Asif, Chairman Privatisation Commission Muhammad Zubair, Chairman Board of Investment Miftah Ismail and other senior officers. While welcoming the delegation, Nawaz said, "Chinese investments will provide a boost to the economy of Pakistan as China is willing to invest $35 billion in various infrastructure projects within 3 to 5 years."
He further said investments in Pakistan will yield high dividends to foreign investors as the business-friendly environment of Pakistan offers great opportunities. Moreover, the government will provide sovereign guarantees to investors to safeguard their investment. President SGCC apprised Nawaz that SGCC is managing around 70 percent of power transmission lines in China. He further elaborated that there are only 6 percent line losses in the transmission system of China owing to better control mechanism, utilising innovative technology and best management practices.
During the meeting, SGCC expressed its interest in the energy sector projects particularly power transmission lines. Energy sector analysts told this scribe that the provision of water alone for the 10 power plants will cost tens of millions of dollars. Similarly, over $1.5 billion will be needed for laying transmission lines and other facilities. "As the government will be spending massive amounts on the setting up of infrastructure in the power park, the decision as to which company would be allowed to set up power plants in the park is crucial and it was planned to undertake this process through international competitive bidding, sources added. However, the principle for awarding various works of the power park and extending the licence for the coal-fired power plants have instead been awarded to various parties on the unsolicited mode.
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