ISLAMABAD: Chinese company M/s CIHC Pak Power Company (Pvt.) Limited has reportedly expressed willingness to evaluate alternative, sustainable, and integrated power solutions for Gwadar.
In a letter addressed to Minister for Planning, Development and Special Initiatives Ahsan Iqbal, company’s Chairman, Zhao Bo, stated that the project company of the 300MW Gwadar coal-fired power plant appreciates the Ministry’s continued guidance and steadfast support in advancing this strategically important project under the China-Pakistan Economic Corridor (CPEC) framework.
The company noted that it understands the complexities inherent in inter-agency coordination and highlighted a procedural matter that may benefit from the Planning Ministry’s facilitation.
READ MORE: PPIB set to decide fate of Gwadar coal-fired power project
It clarified that its request specifically pertains to the extension of the Financial Closing Date stipulated in the existing Letter of Support (LoS).
During the period from January to March 2025, the Private Power and Infrastructure Board (PPIB) issued several official communications advising the project company to extend the validity of its Performance Guarantee and submit the Financial Closing Date extension fee. In compliance with PPIB’s guidance and in good faith, the company fulfilled these requirements.
The Performance Guarantee, extended through the Industrial & Commercial Bank of China (Islamabad Branch), was formally submitted on March 21, 2025, and is valid until March 31, 2028. The company further stated that USD 150,000 was processed through banking channels and confirmed as transferred under its letter dated July 18, 2025.
Throughout this period, the project company engaged with PPIB through formal correspondence, as well as, informal discussions at various levels to ensure that all procedural requirements were clearly understood and promptly addressed.
“We appreciate PPIB’s consistent engagement and preliminary discussions; however, the formal extension letter amending the Financial Closing Date within the LoS has yet to be issued,” the CEO stated. “We fully understand that PPIB may be undergoing necessary internal procedures and respect the Board’s thorough review process. We trust that this delay may be attributable to routine administrative processes and the Board’s demanding schedule.”
Given the strategic importance of maintaining the project’s existing permissions under current policy frameworks, and considering Gwadar’s long-term energy security needs, the company has sought the Planning Ministry’s intervention to facilitate coordination with PPIB for the issuance of the updated Financial Closing Date extension. The company also referred to a related matter arising from discussions during the Prime Minister’s visit to China in September 2025.
During a meeting between the Prime Minister and the President of China Communications Construction Group (CCCG), the Minister for Planning, Development and Special Initiatives requested the company’s shareholder to propose alternative solutions, including a photovoltaic scheme, should the coal-fired project face commercial viability challenges.
In line with this directive, the project company prepared an alternative solution analysis, which was formally submitted to PPIB on December 5, 2025.
The company reaffirmed that addressing Gwadar’s power supply challenges remains its steadfast commitment and stated that it is fully prepared to assist the Ministry and relevant Pakistani authorities in conducting further specialised studies to identify sustainable and integrated power solutions for the region.
Copyright Business Recorder, 2026
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