Khawaja Asif, Defence and Water and Power Minister, who is currently in Moscow, to seek close co-operation in defence and energy fields. Khawaja Asif is on a three-day visit to attend 3rd Moscow Conference on International Security on special invitation from Minister of Defence of the Russian Federation Army General Sergei Shoigu.
Official sources told Business Recorder that Russian and Pakistani companies would explore mutually beneficial joint projects for the purpose of co-operation in the energy sector. Both countries had signed Memoranda of Understandings (MoUs) on defence co-operation. Pakistan's ambassador to Russia recently wrote to Islamabad to honour commitments to strengthen bilateral relations with Moscow.
In the field of energy, the sources said conversion of Muzaffargarh TPS (MTPS) to solid fuel (imported coal) will be discussed at a meeting with Energy Minister. MTPS has been selected for privatisation. A MoU was signed between Techno Pro Mexport Russia and Genco Holding Company for rehabilitation and conversion of 660MW at Muzaffargarh Thermal Power Station to coal but it could not materialise due to PPRA rules.
However, officials of the two countries are confident that they can cooperate in the field of hydro power projects. The projects which are being offered to Russian companies for investment are as follows : (i) evacuation of power from Basha HPP-500 kV AC lines at an estimated cost of $1.340 billion; (ii) evacuation of power from Bunji HPP-500 kV AC lines with an estimated investment of $1.485 billion; (iii) CASA-1000 project at an estimated cost of $189 million (Pakistan portion); and (iv) import of power from Iran 500 kV HVDC at an estimated cost of $472 million.
Following points on co-operation in energy sector were discussed in the second session of the Pakistan-Russia Inter Government Commission (IGC): (i) Pakistani side sought Russian technical assistance for the Tarbela 4th Extension Project; (ii) the two sides noted the interest of the Russian companies in the reconstruction of Mangla Hydroelectric Power Station, construction of new Dasu Hydropower Project and other projects.
The Commission noted readiness of the Russian companies to participate in hydropower projects such as Diamer Bhasha Dam, Mohmand (Munda), Lawi, Phander as Engineering, Procurement and Construction (EPC) Contractors, preparation of feasibility report for Shyok Project and construction of new coal project. According to sources, Russian assistance would be sought in co-operation and financing of Pattan hydropower project, and Thakot hydropower project.
A Russian Energy delegation visited Pakistan from 16-20 September 2013. The Minister of Energy of the Russian Federation had assured Pakistan side of Russian interest in CASA-1000 project but the partner countries (Afghanistan, Tajikistan, Kyrgyzstan) did not agree. Russia has indicated that it would consider the possibility of providing non-grant (loan) investment amounting to $500 million (as committed at the Inter Governmental Council. Russia has offered services of its leading energy companies on planning, construction, exploitation, maintenance and commercial co-operation of transmission line projects.
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