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China Pakistan Economic Corridor (CPEC) | Power Plants

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Mushtaq Ghumman 30 May, 2022
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ISLAMABAD: Managing Director, Private Power & Infrastructure Board (PPIB) Shah Jahan Mirza is reportedly facing the ire of Prime Minister Shehbaz Sharif due to his ignorance about commitment of Rs 100 billion made with the Chinese power sector projects established under China Pakistan Economic Corridor (CPEC), well informed sources in Prime Minister Office told Business Recorder.
The unpleasant situation, sources said, was witnessed at a preparatory meeting on Chinese companies held on May 28, 2022 at the Prime Minister Office.
“In the meeting, Prime Minister noted with concern that Managing Director PPIB was unaware of the commitment given by the Government of Pakistan for payment of Rs 100 billion to Chinese power producers in Pakistan,” the sources said, adding that Secretary Power Division has been directed to probe into the matter and convey the reason why the concerned officer was unaware of this critical issue.
According to sources, Secretary Power has also been directed to submit report in the matter within 24 hours for perusal of the Prime Minister.
Ahsan vows to revive the process of development in Gwadar
Official documents disclose that the Economic Coordination Committee (ECC) of the Cabinet headed by then Finance Minister Shaukat Tarin in January this year had approved Rs 100 billion for payment to IPPs, especially CEPC projects, of which Rs 50 billion were released against pending subsidy claims of previous fiscal year and an equal amount would have to be issued as additional supplementary grant in fourth quarter of current fiscal year.
The ECC, in its meeting held on May 28, 2022 presided over by Finance Minister Dr. Miftah Ismail approved remaining amount of Rs 50 billion on the condition that the requisite funding will be provided against future subsidy claims.
Copyright Business Recorder, 2022
 
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Port Qasim, Karachi...

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The No. 1 steam turbine of the BQPS III 900MW Project in Karachi, constructed by HEI has successfully realized the combined cycle power generation, marking a big step towards the provisional turnover of the 1# Unit of the Project.
 
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Under Construction - Mohmand Dam 800MW

Left Bank Irrigation Tunnel with Blasting , Excavation and Support Works in progress.


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Matiari Lahore High Voltage Direct Current (HVDC) Transmission Line Project under CPEC ensured environment friendly electricity supply in Pakistan. This BRI flagship project is one of the best masterpiece of Pak China friendship under CPEC..

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High Petrol Prices: 50 MW IPP proposal in Gwadar Port on the cards​


By Yasir Habib Khan | Gwadar Pro Jun 6, 2022

GWADAR, Jun. 6 (Gwadar Pro)-After a new hike in petrol prices, a proposal to install a 50 MW Independent Power Producer (IPP)'s plant in collaboration with Chinese power producers in Gwadar is going to be floated in a crucial meeting, which is likely to be held this week in Islamabad between the government and Chinese companies in Gwadar.
Gwadar electricity shortage that remained atop during PM's visit to Gwadar has finally been listed as the utmost priority among other challenges to be pondered during the course of Gwadar-centric meeting, sources from Ministry of Planning, Development, and Reform revealed.
Long- and short-term proposals from the PM's side and from China Overseas Port Holding Company (COPHC), which will also represent other Chinese enterprises, have been laid down and the meeting will greenlight prompt courses of actions to fix electricity issues, sources said.
For long, Chinese companies have been overstressed by overpriced power production by 8.5 MW generators in Gwadar Free Zone against the backdrop of non-availability of power supply from government. Now on the heels of inflated petrol prices, the cost of electricity has gone up to the roof, putting extreme burden on corporate finance.
“Before petrol price surged, Gwadar Port used to purchase petrol at a cost of Rs. 20.3 million monthly. Chinese companies in Gwadar Free Zone were charged Rs. 49 per unit accordingly, which was very high. In a new scenario, when Rs. 60 has been increased in petrol price, the monthly purchase cost for Gwadar companies has soared to Rs. 25.5 million. It is more than 25 percent rise,” a COPHC official said.
COPHC has proposed that if the government allows relevant terms and conditions conferred to IPPs, COPHC in collaboration with Chinese power producers can generate 50 MW sufficiently. “Chinese IPPs’ power cost will be more affordable. This will not only be a shot in the arms of the already functional enterprises but will also embolden new investors to operate in Gwadar Free Zone with a peaceful mind,” he added.
Currently, in Gwadar free Zone, around 51 companied have been registered. Around 10 companies including CBC, H.K. Sons, Agvon, Linyi Trade City, China Ecological Company, China Harbor Engineering Company, Hengmei, Jintai and others are up and running their functions.
Chairman COPHC Zhang Baozhong said “We cannot develop until enough electricity is available. At COPHC, we produce electricity by generators which is very expensive. Chinese investors are keen to shift their industries from China to Pakistan. Areas of investment are very diverse and include but not limited to refinery, assembly, petrochemical, and textile. However, without power, the shift might not be possible,” he said.
“There are strong intentions from Chinese investors to invest $5 million to set up an oil refinery in Gwadar. Once the plan is materialized, job opportunities can be offered to the locals in addition to booming business activities,” he added.
From the government side, there are many overtures to fix energy crisis in Gwadar. The government plans to import 70-to-100-megawatt Iranian electricity to power up Gwadar Port. The average supply from Iran hovers around 40-70 MW. The 300 MW coal-fired power plant under-construction in Gwadar will be completed by 2023. Another option is to lay down a transmission line of 220 KV from the national grid to Gwadar.
Gwadar Port is poised to reshape the economic landscape of Pakistan in addition to opening multiple avenues for foreign direct investment. In this regard, Gwadar holds pivotal importance. The development of Gwadar is sine qua non for Pakistan’s development.
 
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World Environment Day 2022 was successfully celebrated at the Karot hydro power project. Local staff & local communities participated. The plant will reduce CO2 emissions by about 3.5mn tons each year, contributing to addressing the challenges of climate change..


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Karot Hydropower Project
Reconstructed Bridge
 
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50 units of Volvo Dump trucks have arrived at Karachi port for Diamer Bhasha Dam project.

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These trucks will be operated by FWO for multiple hardcore construction operation jobs on site including excavation and tunneling support, access roads etc.

The new Volvo FMX is our most robust construction truck to date and can tackle any tough terrain or construction job. The cab is new, offers more space and excellent visibility along with a driver interface with an adaptable digital instrument display.

The Volvo FMX combines a low instep and powertrain with 440 horsepower and 8x4 axle option. This truck will make the toughest assignments easier – whether there’s a road or not.
 
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