The Economic Co-ordination Committee of the Cabinet (ECC) authorised Private Power and Infrastructure Board (PPIB) to proceed for award of the project to China Communication Construction Company for establishment of 300MW power plant at Gwadar.
The Ministry of Water and Power submitted a proposal to the meeting of the ECC presided over by Finance Minister Ishaq Dar seeking approval of authorising the PPIB to proceed for award of the project to China Communication Construction Company in terms of Rule 5 of Public Procurement Rules 2004 to be processed as a designated project under the Power Generation Policy 2015.
The Water and Power Ministry stated that the Gwadar Port is a warm-water, deep seaport situated on the Arabian Sea at Gwadar in Balochistan province. The port features prominently in the China-Pakistan Economic Corridor (CPEC) plan, and is considered to be a crucial link between the ambitious One Belt, One Road and Maritime Silk Road projects.
In 2015, it was announced that the city and port would be further developed under the CPEC at a cost of $1.62 billion, with the aim of linking northern Pakistan and Western China to the deep water seaport. In late 2015, the port was officially leased to China for 43 years, until 2059.
The ministry further stated that in the meanwhile the government of Islamic Republic of Pakistan and government of China signed an "Agreement on the CPEC Energy Project Co-operation" in November 2014, which included a 300 MW coal based power project to be developed at Gwadar.
During the third meeting of Energy Working Groups of China-Pakistan Economic Corridor held on 25th August 2015, the Chinese side nominated China Communication Construction Company (CCCC), a large state-owned infrastructure group, to invest in the project which was agreed by the Pakistani side with the proposition that the nomination may also be forwarded by National Energy Administration (NEA) of China formally through Chinese Embassy in Pakistan which was later ratified in the 5th meeting of Joint Co-operation Committee on CPEC. Accordingly, the CCCC approached Private Power and Infrastructure Board in September 2015 for the development of a 2x150 MW imported coal, super critical power project.
In the meanwhile, in November 2016, while considering a summary moved by Ministry of Water and Power, Prime Minister Nawaz Sharif desired that the Ministry of Water and Power/PPIB should immediately proceed on the earlier application of CCCC for grant of LOI/LOS for establishment of 300 MW coal power plant at Gwadar after completion of necessary legal formalities as the project is a component of the CPEC.
The government announced Power Generation Policy 2015 and the project may be processed under the clause 6.3 (v) of the Power Policy under "designated projects that are covered under bilateral agreements between the GOP and the foreign governments" thus, enabling exemption of pre-award process and procedures, including pre-qualification and thereby direct award and further processing of the project.