KARACHI: K-Electric said it has signed an agreement with the state-owned China Machinery Engineering Corporation (CMEC) for the development a state-of-the-art 700MW IPP based power project at Port Qasim, Karachi.
In a detailed statement released on Monday, the power utility said the project was formally announced at the Pakistan Trade and Investment Forum held alongside the Second Belt and Road Forum in Beijing, China.
The project agreement and contracts were signed by Moonis Alvi, Chief Executive Officer K-Electric and Zhang Chun, Chairman CMEC in the presence of Abdul Razak Dawood, Adviser for Commerce, Textile, Industry & Production and Investment.
This is a milestone project in the economic cooperation between China and Pakistan and will directly benefit Karachi, Pakistan’s economic hub.
This project is being developed under an IPP mode structure, with K-Electric as the single off-taker. KE holds equity share in this IPP whereas CMEC is both an equity partner and EPC (Engineering, Procurement and Construction) contractor.
The power project already has an approved tariff from NEPRA, whereas land has also been acquired in Port Qasim area of Karachi for the project.
Construction of the plant is expected to commence in the first quarter of next fiscal year. Once the project comes online it will not only help meet the growing power demand in Karachi and its adjoining areas but will also allow KE to diversify its fuel mix.
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