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China Pakistan Economic Corridor (CPEC) | Power Plants


I feel invigorated and fulfilled to start my journey with PQEPC: Fazal Rahim​


By Lesley Liao | Gwadar Pro Jun 27, 2022



I feel invigorated and fulfilled to start my journey with PQEPC: Fazal Rahim

“Here nothing I love more than when we are working with other engaged individuals towards a common goal that is the prosperity of Pakistan, and that's what excited me about working here,” said Fazal Rahim, who has been working at Port Qasim Power Plant project for seven years.
The plant is part of the China-Pakistan Economic Corridor (CPEC). During his time at Port Qasim Electric Power Company (PQEPC), Rahim has worked in different departments and performed different tasks in Administration and Security Department, Planning Department, and Commercial and Procurement Department. He has experienced firsthand and learned different sides of what goes into a mega project.
I feel invigorated and fulfilled to start my journey with PQEPC: Fazal Rahim

Port Qasim Coal-Fired Power Plant, Pakistan

“The day meeting CEO was an incredible experience. I was a bit nervous at the time but after five minutes I was selected and I had a feeling of achievement, gratitude, euphoria and excitement. It’s a new world for me because this was my first job with a Chinese company. I see this opportunity as a way to contribute to my country in a fast-moving way,” Rahim recalled.
“As a fresh graduate, I had been hired on to a position that was definitely above my skill level at the time, but that then drove into a period of incredible growth. I was working with one of the best teams I've ever been a part of. I was learning new things every day and I was given the latitude to solve problems in my own way and make decisions that influenced the direction of my growth in this company,” Rahim said that working at PQEPC was a completely re-invigorating for him.
Touching on his daily work, Rahim said he used to start each day by going over his schedule. As a Pakistani employee who has an in-depth understanding of local market and suppliers, each day he is assisting the company in finding high-quality local suppliers.
“Being a focal person of PQEPC, I am doing the coordination work with the Pakistan Army and Rangers to ensure the best possible security of the Chinese personals. Having a competitive advantage in language, I am also responsible for the reception and escort work of Chinese and Pakistani media, journalists, companies, and officials, providing them translation services in Chinese, English and Urdu,” Rahim told Gwadar Pro.
“Happiness is a very important thing to have and to live a healthy and enjoyable life, doing something that you love is the feel of fulfilled.” This is how Rahim summarizes his seven years at PQEPC as a business manager. “I was kept surrounded by wonderful leaders and colleagues and everyone appreciate my efforts and encouraged me. After finishing study in China, I start my job here with very strong support from my family which boosts my self-esteem and confidence. Through this job, I have a feeling of fulfilling a purpose, and affect positively my other family members’ lives in a big way.”
I feel invigorated and fulfilled to start my journey with PQEPC: Fazal Rahim

Port Qasim Coal-Fired Power Plant, Pakistan

Port Qasim created almost 10,000 direct and indirect jobs for Pakistani engineers and laborers during construction. The operational phase employs about 600 local people annually.
“With poor economic conditions, unemployment is very high in my hometown. There is big competition in big cities for getting a good job. I have many friends who travel abroad for a better future and to support their families, but they are very far from their country and families,” Rahim said.
“After knowing my success story, many of my friends follow my footsteps. through scholarships from the Chinese Government and Confucius Institute, they studied at Chinese universities and now working with different CPEC projects throughout Pakistan. I am very fortunate to start my future career journey with a Chinese project and I feel proud of my work,” Rahim added.
In addition, Rahim said, “I know many local vendors who are working with us since 2015. Now they have very stable business, Chinese companies pay more amount compared with local companies. That’s why all local employees prefer to work here because the pay is higher than local Pakistani companies which improves their quality of life.”
I feel invigorated and fulfilled to start my journey with PQEPC: Fazal Rahim

Rahim receives award for his outstanding contribution to CPEC by the Chinese Embassy to Pakistan in 2021.
Rahim and 26 Pakistani staff were given awards for their outstanding contributions to CPEC by the Chinese Embassy to Pakistan in 2021. Rahim said he felt appreciated and acknowledged working for Chinese project. “Pakistan is facing an energy crisis. Up to now, This project is committed to addressing the dire energy shortage in Pakistan and bringing sustainable, reliable and affordable energy to the people of Pakistan,” Rahim said.
“From my childhood, my father was telling me stories about his uncle who used to travel Kashgar through old silk route for trade. Later on, my father and grandfather were working and witnessing the construction of the Karakoram Highway by Chinese engineers and workers. The Chinese are the best workers in the world. Their dedication and commitment to work have almost transformed the dream of the CPEC into a reality," said Rahim.
 
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Federal govt restores seven CPEC powerplants’ tax exemption

The federal government has restored the tax exemption for the seven power plants currently being developed under the China-Pakistan-Economic-Corridor (CPEC) project.

Reportedly, the following powerplants have been exempted from tax duties on the import of heavy machinery:
  • Kohala Hydro Company (Private) Limited – with a generation capacity of 1,124 MW (date of IA execution: May 25, 2020)
  • Azad Pattan (Private) Limited – with a generation capacity of 700.7 MW (date of IA execution July 6, 2020
  • SK Hydro (Private) Limited – with a generation capacity of 870.25 MW (date of IA execution: April 11, 2014).
  • CHIC Pak Power Company (Pvt) Limited – with a generation capacity of 300 MW (date of execution: April 8, 2021).
  • Thal Nova Power Thar (Private) Limited – with a generation capacity of 330 MW (date of IA execution November 24, 2017)
  • Thar Energy Limited – with a generation capacity of 330 MW (date of IA execution November 10, 2017)
  • Thar Coal Block-1 Power Generation Company (Private) Limited – with a generation capacity of 1,320 MW (date of IA execution: December 12, 2019.
However, the government has instructed companies to meet the following criteria in order to avail the tax exemption status:
  • The company shall enter into an Implementation Agreement (IA) with GOP
  • The contractor shall submit a copy of the contract or agreement under which he intends to import the goods for the project.
  • The chief executive or head of the contracting company shall certify that the imported goods are the project’s bona fide requirement.
 
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The 720MW Karot Hydropower Project in Pakistan is put into full commercial operation today. It is the first hydropower project under the China Pakistan Economic Corridor CPEC invested and developed by CTG.

With a designed installed capacity of 720 MW, the project is expected to generate 3.2 billion kilowatt-hours of clean electricity annually, saving about 1.4 million metric tonnes of standard coal and reducing carbon dioxide emissions


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NEPRA consults stakeholders on using Thar coal to bring down power tariffs​


By Khalid Aziz | Gwadar Pro Jun 30, 2022



ISLAMABAD, June 30 (Gwadar Pro) -Pakistan is facing power shortages due to soaring prices of fossil fuels in international market. Therefore, the country is looking for cheaper alternatives, including the indigenous Thar coal, to lower its electricity generation costs.
In this connection, officials of National Electric Power Regulatory Authority (NEPRA) on Wednesday sat down with stakeholders including Chinese coal mining and power generation companies to find a way out of the current situation.
Representatives of Thar Coal Energy Board, Sindh Engro Coal Mining Co., Shanghai Electric’s subsidiaries Sino Sindh Resources Ltd. and Thar Coal Block-1 Power Generation Co., China Power Hub and Huaneng Shandong Ruyi (Pakistan) participated in the consulting session, NEPRA said. The participants discussed possibilities of utilising Thar coal and coal from other cheaper sources including Afghanistan to reduce power tariffs and eliminate electricity shortages.
Thar coal is being coined as the only solution to Pakistan’s energy demand. A joint venture of Engro Group and China Machinery Engineering Corp. is operating an open-pit coal mine (SECMC) and 660 MWs mine-mouth power plant (EPTL) in Thar Coal Block-II. Faisal Iqbal, GM technical at SECMC, recently said that their mining capacity will grow from 3.8 million tons per annum (mtpa) to 7.6 mtpa By the end of 2022. After expansion, it will provide coal to two 330MWs power plants in Thar, which are near completion, and the 660MWs Lucky Electric’s power plant being established in Karachi. "By the end of 2023, we plan to enhance our mining capacity up to 15 mtpa to serve other power plants as well." Faisal said. He said that Block-II of Thar have over 2 billion tons of certified coal reserves which can steer Pakistan out of the present crisis.
Shanghai Electric is also about to complete a 1,32- MW coal power plant, together with an open-pit coal mine of 7.8 mtpa capacity in Thar Coal Block-1, which will have a big impact on average electricity costs. Both projects in Block-1 and Block-II were launched under China-Pakistan Economic Corridor (CPEC) initiative.
An official told Gwadar Pro that possibility of utilising cheaper Afghani coal was also discussed. However, the stakeholders pointed out that Afghani coal required blending while most power plants had no such facilities. The meeting decided to put forward workable recommendations to the federal government in this regard.
 
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Pakistan invites Chinese firms to invest in renewable energy sector

  • Chinese delegation interested in energy projects, especially wind corridor in Thatta
BR Web Desk
30 Jun, 2022

Prime Minister Shehbaz Sharif on Thursday invited Chinese companies to invest in the country’s renewable energy sector, especially in solar power.

The PM expressed these views while talking to a delegation of Chinese state-owned company NORINCO that had called on him in Islamabad, according to a statement.

The delegation was led by vice-president NORINCO International Wang Xiaobing and CEO NORINCO International (Pakistan), Li Chen.

The prime minister also appreciated the company for its role in the Lahore Orange Line Metro Train project, which he said is facilitating hundreds of thousands of commuters in Lahore daily.

He recalled that it was for the first time that open bidding took place in a Government to Government (G2G) project i.e. Lahore Orange Line. He stated that negotiations were held with the lowest bidder, leading to a saving of $600 million, adding that it was a milestone in the development history of Pakistan.

The NORINCO delegation showed keen interest in investing in the wide spectrum of renewable energy projects in Pakistan, especially the wind corridor in Thatta for where a 100 MW wind power project has been proposed.

As per Pakistan’s latest power generation mix, non-renewable energy sources account for over 70% of power generation in the month of May.

The remaining is made up of renewable sources of energy, with hydroelectric power leading the way with 24% of the power generation, whereas wind accounts for 5%, while solar power contributed only 1% to country’s energy needs, with a generation of only 90kWh last month.

NORINCO also highlighted fibre optic along railway lines, copper and iron ore mining at proven reserves, and infrastructure development in big cities as key investment opportunities.

The Prime Minister said Pakistan is open to investment and will facilitate the process. He stated deepening China-Pakistan economic cooperation is critical to Pakistan’s socio-economic uplift, while highlighting the significance of CPEC as transformational project for the mutual benefit and development of both the friendly countries.

Meanwhile, Member of the Politburo of the Central Committee of the Communist Party of China (CPC) and Director of the Central Commission on Foreign Affairs of the CPC Yang Jiechi arrived on a two-day visit to Pakistan on Wednesday.
 
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The Karot Hydro Power Project, the first-ever pin-power investment project under the China-Pakistan Economic Corridor (CPEC), which was invested and developed by the China Three Gorges Corporation (CTG), commenced full commercial operation today.

Karot Hydro Power Project is located on River Jhelum in Punjab Province of Pakistan with a total installation capacity of 720 MW.


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Afghan coal only: Sahiwal Coal, China Hub to be treated as bonded warehouses

Mushtaq Ghumman
01 Jul, 2022

ISLAMABAD: The government has decided to treat Sahiwal Coal Power and China Hub Power Generation Companies as bonded warehouses for the purposes of Afghan coal only, which is cheaper compared to coal of far off destinations, well-informed sources told Business Recorder.

The decision has been taken by Border Management Committee, comprising Minister for Defence, Khawaja Asif (Convener), Interior Minister, Rana Sana Ullah (Member), Minister for Commerce, Syed Naveed Qamar, (Member) , Secretary Defence (Member), Secretary Interior (Member), Secretary Commerce (Member), Secretary Power (Secretary), Secretary Communications(Member), Secretary Railways (Member), Chief Secretary KP(Member), Chief Secretary, Balochistan (Member), DG MO (Member), Deputy DG (concerned) (Member), Chairman FBR (Member), Chairman Nadra (Member) and Member Customs (Member).

The ToRs of Border Management Committee are as follows: (i) to develop a mechanism for expeditious customs and security clearance at the Pak-Afghan border; (ii) to identify problems that may crop during importation inside Pakistan’s border and ensure institution of a mechanism that allows secure and hassle free transportation of coal within the country; and (iii) to remain posted on the movement of coal imported from Afghanistan within the country and resolve any problem that may hamper its transportation.

First meeting of the Boarder Management Committee was held under the convenership of Minister for Defence on June 20, 2022 wherein a Working Group under the convenership of Secretary Power Division was constituted to prepare a set of proposals for the Committee. Working Group held meetings on June 21 and June 22, 2022 and held extensive discussions.

The second meeting of the Border Management Committee was also held under the convenership of Minister for Defence on June 23, 2022 in the Committee of Power Division. Minister for Commerce also attended the meeting.

The Power Division gave a detailed presentation on the findings/outcome of the Working Group. The representative of NLC informed the forum that they have the additional trucking capacity of 300 trucks per day at Torkham and 20 each at Ghulam Khan and Khalrachi border crossing on 24/7 operation basis subject to availability of one scanner at Khalrachi. It was further noted that these numbers can cater to the needs of Sahiwal coal plant and Hub China Power Plant fully.

After detailed discussion all the members of the committee took the following decisions: (i) Ministry of Interior and FBR will immediately issue notification for 24/7 operations of Khalarchi and Ghulam Khan terminals; (ii) FBR (Customs), Ministry of Commerce and Ministry of Foreign Affairs will immediately issue notification for trans-Pakistan and trans-Afghanistan movement of vehicles of both countries; (iii) FBR (Customs) will ensure 24/7 availability of Clearing Agents at BTs; (iv) Ministry of Commerce and FBR will immediately include coal vehicles in Green Channel at Ghulam Khan and Khalarchi for night operations and BTs where scanners are not installed shall not be used for the time being. This facility will be exclusive for trucks carrying coal for Sahiwal and hub China Power Plants; (v) all the agencies like FBR, NLC, FIA and CAF shall ensure development of additional human resource for smooth 24/7 operations; (vi) for facilitation on Tazkira/Passport of vehicles crew, Ministry of Interior shall hold meeting of the Border Management Committee to issue necessary instructions; (vii) FBR shall take up the matter with Afghan side for extension of WeBOC system for pre-filing; (viii) Sahiwal and China Hub Power will be treated as bonded warehouse for the purposes of Afghan coal only; (ix) an Implementation Committee (IC) has been constituted with the following composition to supervise implementation of agreed roadmap and to resolve day to day issues related to availability of Afghan Custom and other relevant departments, pre-filing of GDs to reduce dwell time, speedy clearance of inbound and outbound vehicles and expansion of infrastructure on Afghan side.

Copyright Business Recorder, 2022
 
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Suki Kinari Hydropower Project located on Kunhar River in beautiful valley of Kaghan, Khyber Pakhtunkhwa, will generate over 884 MW electricity, and is expected to be completed by end of 2023.


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Chinese provider playing increasingly pivotal role in Pakistan’s PV sector​


By Wu Siya | China Economic Net Jul 11, 2022



CHENGDU, July 11 (China Economic Net)- “The Alternative Energy Development Board (AEDB) plans to install about 9.7GW of renewable energy power generation systems throughout Pakistan by around 2030. The government’s strong support and policy continuity are strong guarantee of our business development,” noted President of Zonergy Solar Development, Pakistan Richard Guo, while taking an exclusive interview with the China Economic Net.

Minister of State for Petroleum Musadik Masood Malik stated that the PM constituted a task force on solar energy initiatives with a vision to promote sustainable and green energy. The government is working on a comprehensive solar energy package comprising tax waivers and concessionary loans for consumers in a bid to overcome the prolonged power outages. As the Government of Pakistan strives to make transformational changes in the power system by exploring affordable alternative energy sources, Chinese companies are playing a leading role as installers and service providers for on-grid, off-grid, and hybrid energy in the country. Talha Azher, Vice President of Investment Banking, KASB Securities Limited, pointed out in a survey that the total foreign investment in photovoltaic plants of Pakistan is USD 144 million, of which the total Chinese investment in Pakistan reached USD 125 million. “If PV can be installed on every roof, those who suffer from heat and load shedding can generate their own electricity at least for the whole day,” the Minister further suggested.

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The Zonergy large-scale ground PV power station [Photo provided to CEN]

A recent list issued by the Alternative Energy Development Board, Ministry of Energy showed that amongst the certified installers under AEDB (Certification) Regulations, 2021, Category C-1 (up to and above 500 kW), Chinese photovoltaics provider Zonergy (Tianjin) Company Limited, which has captured over 30 percent market share of distributed optical storage, is on top of the list of 84 companies.

According to Richard Guo, due to a huge power gap, residential electricity prices remain high, Pakistan has a good market demand for large-scale ground power stations, industrial and commercial distributed power stations, as well as residential rooftop distributed power stations. At present, the first phase-3*100 MW project of the 9*100 MW large-scale ground PV power station contracted by Zonergy has been connected to the grid for power generation. As the largest new energy project under the China-Pakistan Economic Corridor, since it was connected to the grid in 2016, it can generate approximately 500 million kWh of clean electricity every year, which can meet the needs of 200,000 people, while the total carbon dioxide emission reduction reached 17.7 million tons. On the other hand, small PV modules have very broad application prospects in the vast rural areas. “The vast rural areas in the central and northwestern Pakistan are covered with PV water pumping projects ranging from 7.5KW to 30KW, and we have installed thousands of sets of products in these areas,” Guo told CEN.

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Group photo of Chinese and Pakistani employees at the project site [Photo provided to CEN]

So far about 430 MW solar projects are operating and connected to the Pakistani grid. The Pakistani government expected that the scale of distributed renewable energy will reach 5-6 GW by 2030, accounting for 25 percent of the total energy. In addition, Pakistan has superior lighting conditions, a large number of villa-style houses and industrial plant roofs, and the overall high energy price. From any point of view, distributed PV have bright prospects.

“Exploration of the more indigenous renewable resources is the key to energy security,” pinpointed Pakistan Economic Survey 2021-22. From a practical point of view, Pakistan still has a high dependence on traditional coal power generation. Nevertheless, whether it is to ensure national energy security or maintain the balance of international payments, there is no doubt that Pakistan needs to vigorously develop PV instead of further development of coal power, which is not conducive to reducing carbon emissions, and will consume a large amount of precious foreign exchange due to imported coal.

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Richard Guo (R4, front row) and project personnel from China and Pakistan [Photo provided to CEN]

Regarding the future prospects of new energy in Pakistan, Richard Guo pointed out that Pakistan has a complete four-level PV power generation system, including large-scale ground power stations, urban distributed, rural distributed, and portable devices. As per International Energy Agency Data shows that Pakistan’s potential exceeds the total requirement in the South Asian Region. “Pakistan has the potential to become the power center of South Asia based on PV and other new energy sources on the premise of further giving full play to the policy advantages of the CPEC and the Belt and Road Initiative.”

In addition to playing a role in energy, Zonergy has always actively fulfilled its social responsibilities. “We have signed a CSR agreement with the Ministry of Energy of Punjab Province to provide PV facilities and water purification systems for many local hospitals and schools,” said Guo, “moreover, Pakistan still facing the lack of technical talents for power station operation and maintenance. Through our efforts, more than 1000 PV engineers have been trained here. We will cooperate with universities to establish laboratories and set up internship positions to provide a platform for college students who are interested in PV industry and realize the sustainable development of the talent echelon.”

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Pakistani employees maintaining PV panels [Photo provided to CEN]

“How to replace prevailing diesel engines with PV energy storage system? it is crucial for carbon reduction and making up for energy shortages in Pakistan. We intend to use sodium-ion batteries as an important storage device, which has more stable performance and lower cost as a kind of advanced technology. In general, in Pakistan’s 41GW energy structure, the proportion of new energy, especially PV, is still very small, so we can say that within 5 to 10 years, the PV industry undoubtedly has a brilliant future. In Pakistan, as a hot field, almost every PV exhibition is crowded, even more lively than various auto show. All of this contains huge opportunities,” Guo look forward to the future full of confidence.

Talha Azher emphasized that China has pledge to move away from coal-based energy generation and promote green energy widely in developing countries. Meanwhile, Pakistani government has set ambitious targets for PV capacity under the IGCEP of 2021. Therefore, Chinese companies can expect a supportive government attitude to investment in PV plants in Pakistan. Furthermore, removal of 17 percent GST would reduce the prices of solar panels. Since a significant portion of solar panels imports are from China, this will have a positive impact on the sales of Chinese PV companies doing business in Pakistan.
 
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Diamer Basha Dam - 4500MW

Construction works commenced in 2020
8.1MAF water storage and will irrigate 1.2 million acres agricultural land
Annual generation 18,097 GWh
Construction Period: 09 years...


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