Ministry of Energy (Power Division)

Pakistan-China agrees fast track development of 21690 MW power projects under China –Pakistan Economic Corridor

Government of Pakistan
Ministry of Water and Power


Islamabad: 15th April 2014. The 1st Meeting of Energy Planning Working Group of China-Pakistan Economic Corridor (CPEC) was held today co-chaired by Mr. Zhang Yuqing, Vice-Administer of National Energy Administration (NEA) of China and Khawaja Muhammad Asif, Federal Minister for Water and Power. Minister for Planning and Development Ahsan Iqbal, Chairman BoI, Miftaha Ismail, Secretary Water and Power, Secretary Planning and senior officials of PPIB, NTDC, AEDB, Petroleum, PPPMCL, Energy departments of all the four provinces attended.

Both parties discussed the organizational framework, basic concepts, main items, work program and enabling mechanism of the energy planning of CPEC. Ministry of Water and Power and China’s National Energy Administration agreed for fast track implementation of the 21690 MW power and related infrastructure projects under CPEC.

It was agreed that both sides will jointly establish China-Pakistan Economic Corridor Energy Information Platform and provide timely, precise and complete data and information of the platform and also establish Energy Planning Expert Group. China would provide 6 million dollars for operation of information platform. The Ministry of Water and Power will ensure that data collection sharing should continue through the whole planning period from May 2014 to December 2014. It was agreed that 16 power projects including construction of transmission lines would be completed by 2017. It was also agreed that both would focuss the study on power source and grid distribution, tariff mechanism, coal development and transportation, push forward the corridors energy infrastructure and interconnection and interworking of power grids and establish list of major cooperation projects.

Minister for Water and Power, Khawaja Asif told the media men that the energy plan with China has been divided in three parts. In the first part, the projects of coal, wind, solar and hydel of about 7000 mw will be initiated this year in September which would be completed in next three year. In the second part, the projects would be started to be completed in five years and third phase, the projects would be started to be completed in seven year. He said that the projects of 21690 mw would be undertaken with the assistance of China under CPEC plan. After completion, the load shedding will end and become a history. He said that circular debt would not end in just one year. We have to control power theft and line losses to end the circular debt issue. He said that there is a proposal of federal adjuster to settle the billing maters with provinces which is still under process due to non- support of provinces. Earlier, in his opening address, he said that China and Pakistan have cordial relation and China has always assisted Pakistan in difficult time. He said that CPEC would be a success story of the region and will further strengthen the Pak-China economic relations. Pakistan would facilitate the investors. He told that in future transmission lines would be developed on BOT basis.
Chinese Vice Administrator of NEA of China thanked both the Ministers and said that China would extend all out support to Pakistan to end energy crises. He said that China has already established energy working group for Pakistan. He agreed with the proposal of the Minister for water and power regarding early completion of the mature projects to be completed in 2017. He said that National Energy Administration (NEA) is responsible for implementation of the projects. He hoped that both sides would identify the projects for early harvest and propose action plan. He said that the government of Pakistan would guarantee the projects and allow incentives to the Chinese investors. Many companies are keen to invest in the power sector of Pakistan. He invited the Pakistani delegation to visit China to discuss the projects to be early harvested in November-December. He said that out of 25 projects 16 are early harvest projects of 21690 mw. 

Minister for Planning, Ahsan Iqbal also spoke the occasion and said that the Chinese interest in various sector specially in the power sector shows that the darkness would soon come to end. He said that Pakistan and China are agreed to work jointly in all the sectors like wind, coal, hydel and solar. He suggested that video conference on weekly basis to review the progress of the work. He said that both sides should expedite the work on the projects which are on advance stage so that their ground breaking may be performed during the visit of Chinese Prime Minister.  ENDS.