Under CPEC, 5,000 MW power to be added to national grid by 2018

ISLAMABAD: Out of 10,400 megawatt prioritised power projects listed under much hyped Pak- China Economic Corridor (CPEC), seven projects having installed capacity of over 5,000 MW have achieved financial close and generated power will be connected with national grid before end of tenure of incumbent regime by 2018.

“Yes seven projects including Suki Kinari hydropower projects in KP, Sahiwal coal power plant, Engro Thar coal projects and wind power projects have achieved financial close paving the way for achieving generation and will be connected to national grid by 2018,” official sources confirmed to The News.

Federal Minister for Planning Professor Ahsan Iqbal confirmed to The News that the government finalised priority projects under CPEC to generate over 10,000 MW electricity by end of 2017 or first quarter of 2018. “We have achieved financial close of 5000-5500 MW electricity which will be completed within envisaged deadline,” he added. The minister also mentioned some projects outside the CPEC including Tarbela extension and Chashma nuclear power projects that would start generating electricity to meet the country’s requirements.

CPEC Secretariat Project Director at Planning Commission Gen (R) Zahir Shah told this correspondent that the energy projects under CPEC were on track and some projects achieved financial close very soon, during last few days of the ongoing month.

However, according to official documents available with The News reveals that Joint Coordination Committee (JCC) of Pakistan and China decided in its last meeting that with the support from the top leadership, out of 14 projects agreed under prioritised list, 2 projects had already achieved financial close and 5 projects had started construction from sponsor equity and are at advanced stages of financial close, 2 Hydro Power Projects also are at advanced stage of completion.

Pakistan and China reviewed the progress of all projects at working group level and have achieved consensus to modify the list of projects based on mutually agreed principles and mechanism during 3rd meeting of Joint Energy Working Group upon the signing of the Supplemental Protocol to Energy Projects Cooperation Agreement, JCC will adopt the revised list of Prioritised and Actively Promoted Energy Projects as agreed by the relevant authorities of both sides.

Pakistani side will provide a formal note confirming the selection of the technology option for Matiari-Lahore transmission lines to Chinese side. It was agreed to encourage State Grid negotiating with the Ministry of Water and Power, and NTDC and apply for tariff to Nepra as soon as possible.

Both sides noted that Huaneng Shandong and the Government of the Punjab signed an MoU in Beijing in August 2015 regarding setting up of 2X660MW coal fired power plant at Rahim Yar Khan.

Both sides agreed to expand energy sector cooperation from power sector to include oil and gas sector. Discussions on the planning of specific areas/projects of cooperation may be held between the energy working group as soon as possible.

Based on Agreement on the CPEC Energy Projects Cooperation between the Government of the People’s Republic of China and the Government of the Islamic Republic of Pakistan, the total number of CPEC Energy Projects is 21, with a total capacity of 17,045MW, of which there are 14 prioritised projects and 7 actively promoted projects with the installed capacities of 10,400MW and 6,645MW respectively.

The feasibility study of the Matiari-Lahore transmission project has almost been completed. Thar mine mouth oracle (1,320MW) is yet to seek LOI. 3 projects are at initial stages of feasibility which are Rahimyar Khan Coal power Project (1,320MW), 1,320 MW MuzaffarGarh Coal fired Power Plant and Gaddani Power Park (2,640MW).

A number of power-source projects are planned in energy planning of CPEC. To meet the power transmission demand of those projects, Matiari-Lahore Transmission Line Project & Matiari-Faisalabad Transmission Line Projects are proposed to be undertaken by State Grid. By 2018, the capacity of power transmission channel from south region to north region in Pakistan will be 5,400MW, with the first transmission line which will later one be doubled by the second transmission line.

The design unit of China put forward 4 different schemes as followed. 500kV AC scheme.±500kV DC & 500kV AC scheme. ±660kV DC scheme. ±660kV DC & 500kV AC scheme.

To ensure the technical feasibility, security & stability and economic rationality of the transmission lines, independent Expert Group of China were invited to argue about the 4 schemes their comments are at Appendix III.The Pakistan side would further study and then decide the final scheme.