Chinese power company shares $9 billion investment plan with government

M/s Shanghai Electric Power Tuesday shared a $9 billion investment plan with the government of Pakistan after months of resistance. The business plan was unveiled at a high-level meeting of the committee constituted by the Cabinet Committee on Energy (CCE) for discussion on JE transaction, while Minister for Water and Power Khawaja Asif presided over the meeting.
Minister for petroleum and natural resources, chairman Privatisation Commission, chairman Board of Investment and senior representatives of ministries of water and power, petroleum and natural resources, finance, and law and justice division also attended the meeting. Shanghai Electric Power, new proposed shareholder of K-Electric, along with the management of KE presented their business plan worth $9 billion for improving and value-adding in the KE power infrastructure, including transmission, distribution and generation.
Shanghai Electric Power, one of the largest power sector companies in China, also shared its profile, international expertise and similar experience. The government of Pakistan appreciated and welcomed the investment and change of shareholder in K-Electric. The government of Pakistan also highlighted the need for K-Electric to synchronise their plans of investment to bring up the infrastructure and the generation facilities, with the overall national plan for minimising and eliminating electricity load shedding in the country by 2018. The government of Pakistan ensured its support to the efforts for improvement in quality of service for the consumers of K-Electric.
The official sources told Business Recorder that the committee made it clear that the government would support the divestment of 66 per cent shares of KE on the condition that new buyer should pay the receivables of CPPA and SSGC. The committee also rejected a proposal of the SEP, which bars the government from selling its 24 per cent shares. The committee, however, committed to continuing the supply of 650MW electricity to KE but on the basis of a revised tariff.