The steering committee on energy projects under China-Pakistan Economic Corridor (CPEC) has reviewed the payment modalities of power purchase agreements in case of coal-based projects, it is learnt. According to sources, Chinese authorities expressed their serious concern on the modalities of power purchase and payments related to coal power projects during Punjab Chief Minister Shahbaz Sharif''s recent visit to China.
While addressing Chinese concerns, the steering committee on energy projects constituted by the Prime Minister discussed the issue of payment pertaining to power purchase agreements with high-level officials of National Transmission and Dispatch Company (NTDC) Limited Pakistan and settled their reservations. The committee met with Federal Minister for Planning, Development and Reform Ahsan Iqbal in the chair at P Block, Planning Secretariat, on Saturday.
The meeting was attended by Chief Minister of Punjab Shahbaz Sharif, Federal Minister for Water and Power Khwaja Asif, Secretary Planning Hasan Nawaz Tarar, Secretary Water and Power Nargis Sethi and representatives from Ministry of Railways and Economic Affairs Division. The sources said that for deliberations and settlement of these issues, a meeting of Working Groups on Energy of both countries would be held on August 4 in Beijing to finalise agreements on the projects. The government also decided to amend the Public Procurement Regulatory Authority (PPRA) to facilitate Chinese companies for investment.
According to a handout issued by Ministry of Planning, Development and Reforms, progress on different energy projects under CPEC such as Coal-Based Power Projects at Gaddani, Jetty + Infrastructure at Gaddani, Quaid-e-Azam Solar Power Park, Rail Projects (ML-I), coal-based power projects at Port Qasim was discussed.
The steering committee will meet frequently to monitor the progress of energy projects under China-Pakistan Economic Corridor. Federal Minister for Planning Professor Ahsan Iqbal underscored the need to work on energy projects under China-Pakistan Economic Corridor on war-footing after the recent visit of high level delegation led by Chief Minister Punjab and Federal Minister for Planning to China.
The meeting reviewed feasibility studies of energy projects under CPEC, demand and supply framework of ongoing and new projects, integrated plan for generation, transmission and distribution, payment modalities of power purchase agreements and curtailing power losses and integrated coal logistics plan for coal power projects. While addressing the meeting, Ahsan Iqbal stated that CPEC is a key initiative which will help Pakistan in meeting its energy shortfall and link the country with regional economies, particularly China''s. He said the Chinese government is keen to pursue the CPEC and has shown trust in government''s policies. The Minister also shed light on the importance of Gaddani Energy Park which has been dedicated as Pak-China Energy Park, which will be the country''s biggest energy projects with 6,600 megawatt capacity.
He called for an integrated plan for coal logistics for energy projects and also directed the committee to address observations of Chinese authorities. Addressing the meeting, Chief Minister of Punjab Shahbaz Sharif said that this economic corridor is a golden opportunity for Pakistan. He said: "It''s now or never; we have to accept the challenge and pounce on this opportunity. History will never forgive us if we fail to do so."
He said that everyone including politicians, bureaucrats and technocrats must come together for betterment of Pakistan and bring this country out of darkness. He stated that in the last decade the energy mix of Pakistan which was unfortunately shifted to thermal energy which damaged the economy in general and the energy sector in particular. He remarked: "There is no point in crying over spilt milk now. We have to act and act fast." He directed the authorities to complete the projects by 2017.
Federal Minister for Water and Power Khawaja Asif informed the committee that his Ministry is working on strict timelines and ensuring transparency and timely completion of projects at all cost. Federal Minister Professor Ahsan Iqbal also constituted a working group comprising representatives from Ministry of Ports and Shipping, Ministry of Water and Power, Pakistan Railways and Ministry of Planning, Development and Reform to address issues related to transportation of coal.