Foreign consortium to set up $1.75 billion coal-fired power project

KARACHI: A foreign consortium will set up coal-fired power project at a cost of $1.75 billion in the port city of Karachi, a statement said on Thursday, indicating growing interest of foreigners in the untapped power sector of the country.
Cai Bin, vice president of a Chinese company Sinohydro, and Muhammad Saqib, secretary of Port Qasim Authority (PQA), have signed the agreement to set up the project, envisaging 1,320-meagwatt of coal-fired electricity at the Port Qasim.
The Chinese power construction company and Qatar-based Al-Mirqab will sponsor the project, the statement issued by the port authorities said.
The PQA has established Port Qasim Electric Power Company to look after the project, while the foreign group has also set up a dedicated company. Sinohydro will hold 51 percent, while Al Mirqab will own rest of the 49 stakes in the power project.
A dedicated jetty is to be built at the port for supplying coal needed for power generation. The project is part of the bilateral deal for China-Pakistan Economic Corridor under which China pledged more than $45 billion of investment in energy and infrastructure projects.
Coal use for power generation has ignited controversy and not a single mega coal-fired power project has kick-started by far despite much fanfare over the coal usage as an energy source.
Analysts said the government has shelved or delayed the start of time-consuming coal-fired project and it is importing liquefied natural gas (LNG) as an immediate solution to the alarming power crisis.
The gap between power supply and demand is widening day by day.
Last month, Engro’s Floating Storage Re-gasification Unit had docked at the Port Qasim, carrying the volume equivalent to 3,000 million metric cubic feet/day.