Pakistan, Russia sign MoUs in power,railways and steel sectors
October 03, 2012
ISLAMABAD: Pakistan and the Russian government have signed three memoranda of understanding (MoUs) in power, railways and steel sectors under which the latter will provide techno-economic assistance to revamp and expand Pakistan Steel Mills (PSM) capacity from the existing one million tons to 2.5 million tons over the next two to three years, according to an official on Tuesday.
Russia will also help Pakistan convert Jamshoro and Muzaffargarh power plants on to coal, he said.
Another MoU was signed focusing on developing infrastructures in Pakistan Railways bogies, tracks expansion and locomotives.
“They [Russia] can do a lot for Railways,” said Saleem H Mandviwalla, chairman of the Board of Investment (BoI), while briefing journalists about these memoranda.
Regarding bilateral investment treaty (BIT) with Russia, Mandviwalla said, “We already have a BIT with Russia; however, we are going to revise it.”
The BoI chairman said that after signing the MoU for PSM expansion within the next two months the formal contract will be signed.
Besides technical assistance, it will involve a Russian assistance of $350 million to $500 million, said Mandviwalla, adding that all these contracts will be on government-to-government basis.
Pakistan Steel Mills is Pakistan’s largest industrial entity. Currently, it has a production capacity of only one million tons of steel per annum and specialised in the production of flat steel products, including, billets, slabs, hot rolled coils, cold rolled coils, galvanised sheets / coils / formed sections and corrugated sheets, he said.
In the power sector, a study will be carried out to asses the feasibility that on how to convert Jamshoro and Muzaffargarh power plants to coal, said Mandviwalla.
“If these were converted to coal, the electricity generation cost will be reduced to half and it will also increase its efficiency,” he said.
Russia has also shown interest in Tarbela power project extension, he added.
When asked about the exact financial cost to be incurred on these two power plants conversion, Mandviwalla said: “We cannot quote the exact amount at the moment.”
Russia’s engagement could be helpful, with the special focus on but not limited to development of rail transport system through expert consultations, manufacturing of locomotives, rolling stock, compatible signalling systems and other advancements and solutions that Transmashholding CJSC, Russia provide in this area.
Currently, a Russian delegation comprising heads of Russian companies is on a visit to Pakistan to hold discussions regarding cooperation in the fields of Railways, water and power and framework cooperation agreement with GENCO and PSM, he said.
The Russian company, Tyazhpromexport, helped Pakistan establish PSM. After the signing of the MoU, the technical audit of the Pakistan Steel Mills by the Russian company Tyazhpromexport would be carried out, said Mandviwalla.
Russia will also help Pakistan convert Jamshoro and Muzaffargarh power plants on to coal, he said.
Another MoU was signed focusing on developing infrastructures in Pakistan Railways bogies, tracks expansion and locomotives.
“They [Russia] can do a lot for Railways,” said Saleem H Mandviwalla, chairman of the Board of Investment (BoI), while briefing journalists about these memoranda.
Regarding bilateral investment treaty (BIT) with Russia, Mandviwalla said, “We already have a BIT with Russia; however, we are going to revise it.”
The BoI chairman said that after signing the MoU for PSM expansion within the next two months the formal contract will be signed.
Besides technical assistance, it will involve a Russian assistance of $350 million to $500 million, said Mandviwalla, adding that all these contracts will be on government-to-government basis.
Pakistan Steel Mills is Pakistan’s largest industrial entity. Currently, it has a production capacity of only one million tons of steel per annum and specialised in the production of flat steel products, including, billets, slabs, hot rolled coils, cold rolled coils, galvanised sheets / coils / formed sections and corrugated sheets, he said.
In the power sector, a study will be carried out to asses the feasibility that on how to convert Jamshoro and Muzaffargarh power plants to coal, said Mandviwalla.
“If these were converted to coal, the electricity generation cost will be reduced to half and it will also increase its efficiency,” he said.
Russia has also shown interest in Tarbela power project extension, he added.
When asked about the exact financial cost to be incurred on these two power plants conversion, Mandviwalla said: “We cannot quote the exact amount at the moment.”
Russia’s engagement could be helpful, with the special focus on but not limited to development of rail transport system through expert consultations, manufacturing of locomotives, rolling stock, compatible signalling systems and other advancements and solutions that Transmashholding CJSC, Russia provide in this area.
Currently, a Russian delegation comprising heads of Russian companies is on a visit to Pakistan to hold discussions regarding cooperation in the fields of Railways, water and power and framework cooperation agreement with GENCO and PSM, he said.
The Russian company, Tyazhpromexport, helped Pakistan establish PSM. After the signing of the MoU, the technical audit of the Pakistan Steel Mills by the Russian company Tyazhpromexport would be carried out, said Mandviwalla.
