China commits $6.5 billion for nuclear project in Pakistan

[Devil Soul]

China commits $6.5 billion for nuclear project in Pakistan
By Reuters
Published: December 24, 2013-

ISLAMABAD: China has committed $6.5 billion to finance the construction of a major nuclear power project in Karachi as it seeks to strengthen ties with its strategic partner, officials said.

Prime Minister Nawaz Sharif broke ground on the $9.59 billion project last month but officials have provided few details of how they plan to finance it.

Financing documents seen by Reuters showed China National Nuclear Cooperation (CNNC) has promised to grant a loan of at least $6.5 billion to finance the project which will have two reactors with a capacity of 1,100 megawatts each.

Two members of the government’s energy team and three sources close to the deal confirmed this. CNNC was not available for comment.

“China has complete confidence in Pakistan’s capacity to run a nuclear power plant with all checks in place,” said Ansar Parvez, chairman of the Pakistan Atomic Energy Commission which runs the civilian nuclear programme.

Parvez declined to give more details of the funding but said it would be completed by 2019 and each of the two reactors would be larger than the combined power of all nuclear reactors now operating in Pakistan.

As part of the deal, China has also waived a $250,000 insurance premium on the loan, said two sources in the Energy Ministry with knowledge of the project. They declined to be identified as they are not authorised to speak to the media about the financing.

Pakistan and China, both nuclear-armed nations, consider each other close friends and their ties have been underpinned by common wariness of India and a desire to hedge against US influence in South Asia.

Pakistan sees nuclear energy as key to its efforts to solve power shortages that have crippled its economy. The country generates about 11,000 MW of power while total demand is about 15,000 MW.

Blackouts lasting more than half a day in some areas have infuriated many citizens and sparked violent protests, undermining an economy already beset by high unemployment, widespread poverty, crime and sectarian and insurgent violence.

Under its long-term energy plan, Pakistan hopes to produce more than 40,000 MW of electricity through nuclear plants by 2050.

The United States sealed a nuclear supply deal with India in 2008, irking both China and Pakistan.

Pakistan wants a similar agreement with the United States but it is reluctant, largely because nuclear scientist Abdul Qadeer Khan admitted in 2004 to transferring nuclear secrets to North Korea, Iran and Iraq.

“There should be no double standards in terms of civilian nuclear deals,” Parvez said. “Pakistan has energy needs and the building of two new reactors should convince everyone that India’s embargos and restrictions won’t stop us.”

Proliferation fears

Pakistan carried out its first nuclear tests in 1998, soon after India conducted tests. Both refuse to join the Nuclear Non-proliferation Treaty, which would oblige them to scrap atomic weapons.

China has already helped supply two nuclear reactors at the Chashma nuclear power complex in Punjab, while another two are also under construction with Chinese assistance.

China’s nuclear cooperation with Pakistan has caused unease in Washington, Delhi and other capitals due to fears about commitment to nuclear non-proliferation rules.

China says its nuclear ties with Pakistan are entirely peaceful and come under International Atomic Energy Agency safeguards. It has not given details of the project’s financing but state media has put its total value at $9.59 billion.

“Bilateral cooperation in the energy sector is to help ameliorate Pakistan’s energy shortages,” Chinese Foreign Ministry spokeswoman Hua Chunying said on Monday. “This accords with the interests of the Pakistani people.”

Three prominent physicists recently raised questions about the safety, design and cost of the new reactors in Karachi, sparking a national debate.

“There is no official information about preparedness for a nuclear accident in Karachi that is available publicly,” said Zia Mian, a Pakistani-American physicist who directs the Project on Peace and Security in South Asia at Princeton University.

“The only real obstacle that may exist to the new reactors being built is if the citizens of Karachi decide they do not want to live with the risks these reactors create.”

But Pakistan’s new energy minister has dismissed the critics.

“Every 1,000 megawatts of electricity produced through nuclear energy saves you $1 billion in oil imports,” Khawaja Asif, the minister for water and power, told Reuters.

“If critics can give me alternatives and other platforms to raise money for low-cost, clean power, I’m willing to listen.”

 

[Chinese-Dragon]

Nuclear power is great. And necessary.

But it should also be supplemented with regular means of generating electricity (Pakistan has a lot of coal), and renewable energy sources such as hydroelectric dams and wind farms.

The Three Gorges Dam produces 22.5 GW of energy, it is the biggest power station in the world. Even a few smaller Dams would be enough to take care of Pakistan's energy problems, as well as protect Pakistan from flooding at the same time.

I think Pakistan should build more coal-fired power plants in the short term. You'll never have to worry about coal supply, it's a lot more reliable than waiting for a gas pipeline that will never come due to political games with America and Iran.

Nuclear and Hydroelectric are both very good long-term investments.

 

[graphican]

Here comes the mighty dragon and helping us the way we need. Thank you China!

 

[razgriz19]

Karachi is prone to earthquakes....
I hope they kept that in mind. We don't want another Japanese style nuclear disaster

 

[Chinese-Dragon]

Karachi is prone to earthquakes....
I hope they kept that in mind. We don't want another Japanese style nuclear disaster

Nuclear fears are overblown.

The Japanese reactor in question was a very old design, and in the worst possible location for a Tsunami.

I don't see how such an accident could be replicated without an old rector combined with the same terrible location, being directly in the path of a Tsunami.

 

[v9s]

Karachi is prone to earthquakes....
I hope they kept that in mind. We don't want another Japanese style nuclear disaster

No No NO...you do your research before posting!

The Japanese reactor was a Gen I design that required cooling even if reactor is turned off. The Japanese reactor only failed because the tsunami waters flooded the emergency generators that were powering the cooling system for the reactors, otherwise the reactors turned off like they were designed to in an event like that.

Gen II and above do not require active power at all while shut down and are much much more safer.

 

[pak avatar]

No No NO...you do your research before posting!

The Japanese reactor was a Gen I design that required cooling even if reactor is turned off. The Japanese reactor only failed because the tsunami waters flooded the emergency generators that were powering the cooling system for the reactors, otherwise the reactors turned off like they were designed to in an event like that.

Gen II and above do not require active power at all while shut down and are much much more safer.

Regardless, wouldnt u agree its safer to move the plant away from such a populated and economic hub
1000MW will go into the national grid regardless of wheres its located

 

[ziaulislam]

actually u need transmission lines to load centre e.g bhasha dam will cost 1 billion dollar just to transmit power to load centres. now nuclear power near city will save that plus transmission line lossess cost . regardlessly it should still be atleast 50km from major cities IMO

 

[mohd]

pakistan

sab say pahlay pakistan i lov my pakistan

 

[mohd]

raja sadiq kashmir

 

[FalconsForPeace]

China has committed $6.5 billion to finance the construction of a major nuclear power project in Pakistan's port city of Karachi as it seeks to strengthen ties with its strategic partner, Pakistani officials said.

Pakistani Prime Minister Nawaz Sharif broke ground on the $9.59 billion project last month but officials have provided few details of how they plan to finance it.

Financing documents seen by Reuters showed China National Nuclear Cooperation (CNNC) has promised to grant a loan of at least $6.5 billion to finance the project which will have two reactors with a capacity of 1,100 megawatts each.

Two members of the government's energy team and three sources close to the deal confirmed this. CNNC was not available for comment.

"China has complete confidence in Pakistan's capacity to run a nuclear power plant with all checks in place," said Ansar Parvez, chairman of the Pakistan Atomic Energy Commission which runs the civilian nuclear program.

Parvez declined to give more details of the funding but said it would be completed by 2019 and each of the two reactors would be larger than the combined power of all nuclear reactors now operating in Pakistan.

As part of the deal, China has also waived a $250,000 insurance premium on the loan, said two sources in the Energy Ministry with knowledge of the project. They declined to be identified as they are not authorized to speak to the media about the financing.

Pakistan and China, both nuclear-armed nations, consider each other close friends and their ties have been underpinned by common wariness of India and a desire to hedge against U.S. influence in South Asia.

Pakistan sees nuclear energy as key to its efforts to solve power shortages that have crippled its economy. Pakistan generates about 11,000 MW of power while total demand is about 15,000 MW.

Blackouts lasting more than half a day in some areas have infuriated many Pakistanis and sparked violent protests, undermining an economy already beset by high unemployment, widespread poverty, crime and sectarian and insurgent violence.

Under its long-term energy plan, Pakistan hopes to produce more than 40,000 MW of electricity through nuclear plants by 2050.

The United States sealed a nuclear supply deal with India in 2008, irking both China and Pakistan.

Pakistan wants a similar agreement with the United States but it is reluctant, largely because Pakistani nuclear scientist Abdul Qadeer Khan admitted in 2004 to transferring nuclear secrets to North Korea, Iran and Iraq.

"There should be no double standards in terms of civilian nuclear deals," Parvez said. "Pakistan has energy needs and the building of two new reactors should convince everyone that India's embargos and restrictions won't stop us."

PROLIFERATION FEARS
Pakistan carried out its first nuclear tests in 1998, soon after India conducted tests. Both refuse to join the Nuclear Non-proliferation Treaty, which would oblige them to scrap atomic weapons.

China has already helped supply two nuclear reactors at the Chashma nuclear power complex in Pakistan's Punjab region, while another two are also under construction with Chinese assistance.

China's nuclear cooperation with Pakistan has caused unease in Washington, Delhi and other capitals due to fears about commitment to nuclear non-proliferation rules.

China says its nuclear ties with Pakistan are entirely peaceful and come under International Atomic Energy Agency safeguards. It has not given details of the project's financing but state media has put its total value at $9.59 billion.

"Bilateral cooperation in the energy sector is to help ameliorate Pakistan's energy shortages," Chinese Foreign Ministry spokeswoman Hua Chunying said on Monday. "This accords with the interests of the Pakistani people."

Three prominent physicists recently raised questions about the safety, design and cost of the new reactors inKarachi, sparking a national debate.

"There is no official information about preparedness for a nuclear accident in Karachi that is available publicly," said Zia Mian, a Pakistani-American physicist who directs the Project on Peace and Security in South Asia atPrinceton University.

"The only real obstacle that may exist to the new reactors being built is if the citizens of Karachi decide they do not want to live with the risks these reactors create."

But Pakistan's new energy minister has dismissed the critics.

"Every 1,000 megawatts of electricity produced through nuclear energy saves you $1 billion in oil imports,"Khawaja Asif, the minister for water and power, told Reuters.

"If critics can give me alternatives and other platforms to raise money for low-cost, clean power, I'm willing to listen."

(Additional reporting by Ben Blanchard and Aizhu Chen in Beijing; Editing by Maria Golovnina and Robert Birsel)

China Is Giving $6.5 Billion To A Huge Pakistani Nuclear Project - Business Insider

 

[Edevelop]

ISLAMABAD: China has committed $6.5 billion to finance the construction of a major nuclear power project in Karachi as it seeks to strengthen ties with its strategic partner, officials said.

Prime Minister Nawaz Sharif broke ground on the $9.59 billion project last month but officials have provided few details of how they plan to finance it.

Financing documents seen by Reuters showed China National Nuclear Cooperation (CNNC) has promised to grant a loan of at least $6.5 billion to finance the project which will have two reactors with a capacity of 1,100 megawatts each.

Two members of the government’s energy team and three sources close to the deal confirmed this. CNNC was not available for comment.

“China has complete confidence in Pakistan’s capacity to run a nuclear power plant with all checks in place,” said Ansar Parvez, chairman of the Pakistan Atomic Energy Commission which runs the civilian nuclear programme.

Parvez declined to give more details of the funding but said it would be completed by 2019 and each of the two reactors would be larger than the combined power of all nuclear reactors now operating in Pakistan.

As part of the deal, China has also waived a $250,000 insurance premium on the loan, said two sources in the Energy Ministry with knowledge of the project. They declined to be identified as they are not authorised to speak to the media about the financing.

Pakistan and China, both nuclear-armed nations, consider each other close friends and their ties have been underpinned by common wariness of India and a desire to hedge against US influence in South Asia.

Pakistan sees nuclear energy as key to its efforts to solve power shortages that have crippled its economy. The country generates about 11,000 MW of power while total demand is about 15,000 MW.

Blackouts lasting more than half a day in some areas have infuriated many citizens and sparked violent protests, undermining an economy already beset by high unemployment, widespread poverty, crime and sectarian and insurgent violence.

Under its long-term energy plan, Pakistan hopes to produce more than 40,000 MW of electricity through nuclear plants by 2050.

The United States sealed a nuclear supply deal with India in 2008, irking both China and Pakistan.

Pakistan wants a similar agreement with the United States but it is reluctant, largely because nuclear scientist Abdul Qadeer Khan admitted in 2004 to transferring nuclear secrets to North Korea, Iran and Iraq.

“There should be no double standards in terms of civilian nuclear deals,” Parvez said. “Pakistan has energy needs and the building of two new reactors should convince everyone that India’s embargos and restrictions won’t stop us.”

Proliferation fears

Pakistan carried out its first nuclear tests in 1998, soon after India conducted tests. Both refuse to join the Nuclear Non-proliferation Treaty, which would oblige them to scrap atomic weapons.

China has already helped supply two nuclear reactors at the Chashma nuclear power complex in Punjab, while another two are also under construction with Chinese assistance.

China’s nuclear cooperation with Pakistan has caused unease in Washington, Delhi and other capitals due to fears about commitment to nuclear non-proliferation rules.

China says its nuclear ties with Pakistan are entirely peaceful and come under International Atomic Energy Agency safeguards. It has not given details of the project’s financing but state media has put its total value at $9.59 billion.

“Bilateral cooperation in the energy sector is to help ameliorate Pakistan’s energy shortages,” Chinese Foreign Ministry spokeswoman Hua Chunying said on Monday. “This accords with the interests of the Pakistani people.”

Three prominent physicists recently raised questions about the safety, design and cost of the new reactors in Karachi, sparking a national debate.

“There is no official information about preparedness for a nuclear accident in Karachi that is available publicly,” said Zia Mian, a Pakistani-American physicist who directs the Project on Peace and Security in South Asia at Princeton University.

“The only real obstacle that may exist to the new reactors being built is if the citizens of Karachi decide they do not want to live with the risks these reactors create.”

But Pakistan’s new energy minister has dismissed the critics.

“Every 1,000 megawatts of electricity produced through nuclear energy saves you $1 billion in oil imports,” Khawaja Asif, the minister for water and power, told Reuters.

“If critics can give me alternatives and other platforms to raise money for low-cost, clean power, I’m willing to listen.”

China commits $6.5 billion for nuclear project in Pakistan – The Express Tribune

 

[Chak Bamu]

This is big news for sure. I knew that there would be massive Chinese backing for this project when it was announced.

Just imagine the boost to local economy wherever this project materializes. In Pakistan's condition $6.5 B is a major shot. All we have to do is cough up $3.1 B, most likely in local currency terms for Building, civil works, etc... That should not be much of a problem.

If citizens of Karachi do not want this development, let us move it elsewhere along Indus. I read an article years ago about new generation of Chinese Nuclear Fission Reactors, with design features that make the possibility of an accidental melt-down very unlikely by specific design of nuclear fuel encasing. The point of the said article was to show how far the Chinese Nuclear technology had come, and that in some ways it was more advanced than Western tech in safety features at least. I would very much like any poster with detailed knowledge in this field to comment on this facet.

I do not wish to play down the perceived risk of an accident, but provided design and location of the said Nuclear Plants safeguards against natural calamities, we should not have to worry over-much.

If we had gone for Kalabagh Dam, we would not have needed any nuclear energy project. But as things stand, we are in desperate need of cheap(er) energy projects.

These two plants would mean more than 18 Billion units of electricity per year. Based on replacement of that many units of expensive furnace oil produced thermal energy, we should be saving more than $2 B per year in cost, and perhaps a little less than that in foreign exchange (since we would likely be importing nuclear fuel). If the $9.59 B cost is the turn-key cost, then we could forget about cost of importing nuclear fuel for a while.

I do not like Nuclear energy per se, but what options do we have for now?

 

[Chak Bamu]

My cross-post from other similar thread:

This is big news for sure. I knew that there would be massive Chinese backing for this project when it was announced.

Just imagine the boost to local economy wherever this project materializes. In Pakistan's condition $6.5 B is a major shot. All we have to do is cough up $3.1 B, most likely in local currency terms for Building, civil works, etc... That should not be much of a problem.

If citizens of Karachi do not want this development, let us move it elsewhere along Indus. I read an article years ago about new generation of Chinese Nuclear Fission Reactors, with design features that make the possibility of an accidental melt-down very unlikely by specific design of nuclear fuel encasing. The point of the said article was to show how far the Chinese Nuclear technology had come, and that in some ways it was more advanced than Western tech in safety features at least. I would very much like any poster with detailed knowledge in this field to comment on this facet.

I do not wish to play down the perceived risk of an accident, but provided design and location of the said Nuclear Plants safeguards against natural calamities, we should not have to worry over-much.

If we had gone for Kalabagh Dam, we would not have needed any nuclear energy project. But as things stand, we are in desperate need of cheap(er) energy projects.

These two plants would mean more than 18 Billion units of electricity per year. Based on replacement of that many units of expensive furnace oil produced thermal energy, we should be saving more than $2 B per year in cost, and perhaps a little less than that in foreign exchange (since we would likely be importing nuclear fuel). If the $9.59 B cost is the turn-key cost, then we could forget about cost of importing nuclear fuel for a while.

I do not like Nuclear energy per se, but what options do we have for now?

 

[AZADPAKISTAN2009]

Great initiative to have such power plane clean source of energy