CPEC coal power projects’ cost per MW 40pc higher

ISLAMABAD: The lowest ever price for one megawatt in the International Competitive Bidding (ICB) for Jamshoro coal power project of 1320MW headed by ADB has exposed the bitter fact how costly Port Qasim and Sahiwal coal power projects under CPEC are, reveals the latest official document available with The News.

This has questioned the ability of authorities concerned who negotiated the PPAs (Power Purchase Agreements) at higher prices with Chinese contractors for said coal power plants installed under CPEC umbrella.

The EPC per MW cost through recently held ICB for first phase of 660MW of Jamshoro power plant has been achieved at $0.578 million whereas the EPC cost of Port Qasim and Sahiwal coal power project per MW under CPEC is $1.21 million per MW showing that the cost of one MW of the said coal power plants under CPEC is 40 percent higher than that of Jamshoro coal power plant. The EPC cost is reflected in the final tariff.

This means that the said two coal power plants of 1320MW each under CPEC are getting unjustified Rs60 billion ($550 million) per annum due to over pricing of these projects, a senior official at Power Division told The News.