Author: Muhammad Shakil Naz
Pakistan is facing energy shortfall necessary to be filled to boost it economy. In order to give boost to its industrial sector to come out of the economic crisis, the energy generation capacity has to be almost doubled from the status as in the year 2013 and it is to be done within a short span of time. From Pakistan’s perspective, enhancement of energy generation capacity is the major focus of CPEC project to start with. For this reason, approximately 70% of currently committed Chinese investment in Pakistan for CPEC Project is dedicated to energy projects.
In order to overcome the traditional pace of bureaucratic procedures, both countries have decided to let these energy projects be executed by private Independent Power Producers (IPPs). The funds will be provided to these IPPs by Exim Bank of China at about 5 to 6 % interest rates. Pakistan would be contractually bound to buy electricity from these IPPs companies at pre-negotiated rates.
In terms of priority, the Government of Pakistan has divided the energy projects as follows:
- CPEC-Energy Priority Projects – generating 10,360 MW, executing between 2016 to 2020 (view details)
- CPEC-Energy Actively Promoted Projects – generating 6,345 MW, executing between 2020 to 2030 (view details)
In terms of technology, these projects can be categorized as follows:
|TECHNOLOGY||PRIORITY PROJECTS (MW)||ACTIVELY PROMOTED PROJECTS (MW)|
Provinces wise distribution of these projects is as follows:
|PROVINCE||PROJECT SIZE (MW)||PROJECT COST (US$ M)|
|Azad Jammu Kashmir(AJK)||1,100||2,397|
|AJK & Punjab||720||1,420|
|Not Yet Decided||525||550|
Details of support infrastructure required for these projects is as given below:
|SUPPORT INFRASTRUCTURE||LOCATION||PROJECT COST
|Surface mine in Block II of Thar Coal field, 6.5 metric ton per annum (mtpa), Thar Sindh||Sindh||1,470|
|SSRL Thar Coal Block 1 – 6.5 metric ton per annum(mpta) Thar, Sindh||Sindh||1,300|
|Matiari to Lahore Transmission line||Sindh & Punjab||1,500|
|Matiari to Faisalabad Transmission line||Sindh & Punjab||1,500|
To see the current progress update of the above mentioned project click the link below:
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