ISLAMABAD: Pakistan and China will sign on Power Purchase Agreement (PPA)/Implementation Agreement (IA) of 300-megawatt (MW) Imported Coal-Based Power Project at Gwadar in this month (December). The decision of signing agreement has been taking in a meeting of Joint Working Group (JWG) on Gwadar under the China-Pakistan Economic Corridor (CPEC), here on Monday. The 5th JWG meeting between the governments of Pakistan and China on Gwadar was chaired by Planning Secretary Motahar Niaz Rana and China's Director General DG) National Development and Reform Commission of China (NDRC) Ying Jiang under the video link.
The Chinese side suggested signing the PPA/IA and landing lease agreement of the project as soon as possible to obtain financing and start the construction. Then, Minister for Planning, Development, and Reform Khusro Bakhtyar and National Development and Reform Commission (NDRC) Vice Chairman Ning Jizhe had inaugurated the 300MW coal power plant during their visit to Gwadar in November 2019.
The letter of interest for the 300 MW coal-fired power project was issued in 2017, and the estimated cost of the project is $542.32 million. The CIHC Pak Power Company Limited is the developer of the project based on imported coal. The JWG also announced to expedite work on Gwadar projects. The East Bay Expressway will be completed by April 2021.
It was also said that the work on Gwadar Airport will be completed soon. China will support Gwadar economic projects such as agriculture, livestock, and fisheries. Director General, National Development and Reform Commission (NDRC) Ying Xiong in his opening remarks said that the development of the Gwadar is a priority and will be pushed forward with vigor and zeal. Chinese side appreciated the support provided by Pakistan in the port operationalization particularly enabling the Afghan transit trade through Gwadar.
It was agreed that this step would greatly reduce the logistic cost and facilitate the transshipment trade. The Chairman of China Overseas Ports Holding Company Ltd (COPHCL) explained the development of the port in detail and highlighted renewed interest of the entrepreneurs in investing in Gwadar port and Free Zone area.
It was also informed that the Eastbay Expressway will be completed in 2021 and all pending issues have been resolved on priority. The Expressway will connect the port with the 2nd Phase of the Free Trade Zone (FTZ), which will facilitate the business climate of the zone and the port alike.
Other projects discussed included New Gwadar International Airport (NGIA) and M-8 Motorway for seamless connectivity of Gwadar with the rest of the country and beyond. The progress on the NGIA was noted with satisfaction. Other projects in the social sector discussed during the meeting include Pak-China Friendship Hospital in Gwadar and Vocational and Technical Institute in Gwadar.
The secretary Planning Commission highlighted that the hospital project is of vital importance for the people of Gwadar and needs to be expedited. The secretary suggested to expedite work for timely completion of the project.
For the Vocational and Technical Institute, both sides agreed to push ahead creating job opportunities for the youth. For the development of Gwadar as a smart port city, it was reiterated that the provision of fresh water is of utmost importance.
In this regard, the 1.2 MGD desalination plant project was termed critical. Both sides agreed to take necessary measure to complete the project in time. The dredging of Berthing Areas is important for large vessels to access the Gwadar port, which will improve the operationally of the port.
For the construction of Breakwater, the timely completion of the project was stressed as a crucial intervention required for the fishermen community in Gwadar. The secretary Planning Commission proposed to divide the project in to two phases for better implementation of the project. The DG, NDRC replied in affirmative and appreciated the idea.
The Director General, NDRC applauded the development package and reiterated China's full support for the socio-economic well-being of Balochistan region. The meeting was concluded with signing of the minutes along with finalisation of the agreed deliverables of the JWG on Gwadar for the forthcoming 10th JCC.
Copyright Business Recorder, 2020
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