Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal sought Chinese assistance for the energy projects being developed under the China-Pakistan Economic Corridor (CPEC) umbrella.
“Pakistan appreciates the vision of Chinese leadership to upgrade the second phase of the China-Pakistan Economic Corridor (CPEC) with the inclusion of five new corridors,” said Iqbal as he addressed the 13th Joint Cooperation Committee (JCC) meeting of the China-Pakistan Economic Corridor (CPEC) on Friday.
“In the energy sector, we have completed 16 projects with a generation capacity of over 8,020 MW, along with two coal mines and a 660-KV High Voltage Direct Current (HVDC) transmission line.
“The total investment in these projects is around $16 billion,” he said.
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The federal minister shared that currently one hydropower project of 884 MW i.e. Suki Kinari, worth $1.7 billion is under construction and expected to be commissioned later this year.
“Three power projects including two hydel namely Azad Pattan and Kohala Hydropower Project, and one coal-based Gwadar Power Project, with a generation capacity of 2,100 MW and cost of over $4 billion are in the advanced stage to achieve financial close.
“We urge and request the Chinese side for its support in achieving groundbreaking of these projects during the current year,” he said.
The minister said that a breakthrough in the energy sector has been the consensus between Pakistan and China, to evaluate an in-depth study to shift the power plants from imported to local coal.
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“This strategic move will not only reduce Pakistan’s import bill but also facilitate payments to Chinese companies,” he said.
The minister said the government intends to transform Thar coal deposits into green energy, through a coal gasification project.
In the transport sector, the minister shared that eight projects worth $6.7 billion have been completed. “We hope to see Gwadar Airport in service this year,” he said.
The federal minister said that the government is in the advanced stage to sign a framework agreement on the Thakot-Raikot section, a critical segment of the Karakoram Highway.
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He said that the re-modified PC-1 of Pakistani Railways ML-1 project has been approved, with a cost of $6.8 billion in two phases and is ready for bidding.
“I urge the National Development and Reform Commission (NDRC) of China and the National Railway Administration to authorise the immediate commencement of the bidding process and establish timelines leading up to the groundbreaking of the project,” he said.
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