Govt signs four pacts to set up 1,650MW coal-fired plants

ISLAMABAD: The government on Wednesday signed four agreements to set up two coal-based power plants of 1,650MW in Hub and Thar under the China-Pakistan Economic Corridor (CPEC) project.

The agreements included two each for implementation and power purchase. The agreements were signed by representatives of China Power Hub Generation Company (Private) Limited (CPHGC), Hubco and Private Power Infrastructure Board (PPIB) on behalf of their respective organisations.

Minister for Water and Power Khwaja Muhammad Asif and Secretary Water and Power Mohammad Younas Dagha also witnessed the signing ceremony. Under the agreements, 1,320MW coal-fired power plant is being set up in Hub, Balochistan with an estimated cost of over $2 billion, while 330MW plant will be established in Thar, Sindh at a cost of $500 million.

The 1,320MW project would be completed by August 2019, while 330MW Thar project would start generation by December 2019. Terming both the projects a major milestone, Asif said that the construction work on 1,320MW plant had already started and both the projects would be completed in 2019.

The government is also fully implementing projects to be completed after its tenure, keeping in view the future requirements of energy, he added. Asif said preference is being given to use local coal from Thar for generating cheap electricity. These projects would open up new chapter in the energy sector, he said, adding that Thar would be the centre of energy for the country in future.

It would not only help save precious foreign exchange, but also generate electricity at affordable rates to the consumers.  The minister said that signing of the agreements is a great achievement. The 1,320MW project was based on super critical technology, while 330MW project was based on sub-critical technology. Regarding the Thar project, he said it is a pilot project and would attract huge investment.