ISLAMABAD: Pakistan is engaging the Chinese leadership for the revival of more than 1800-megawatt of hydropower projects (HPPs) and investment from fresh Chinese companies in the country’s transmission and distribution network as part of the second phase of the China-Pakistan Economic Corridor (CPEC).
The authorities are trying their best to convene a meeting of the Joint Cooperation Committee (JCC) of the cabinet on May 22-23 so that Prime Minister Shehbaz Sharif’s upcoming visit to Beijing early next month will be a success.
A high-level delegation led by Planning Minister Ahsan Iqbal is currently in China to pursue existing investors and financial institutions and tap in more firms in transmission and distribution network as part of CPEC’s second phase.
Besides fresh investments in transmission projects, Pakistan wants Chinese firms to also enter the distribution sector as the government pushes for private sector participation, including through privatisation or long-term concession agreements.
The two major hydropower projects— 1,124 MW Kohala and 700 MW Azad Pattan — have been delayed for more than 18 months and the investors have not been able to achieve financial close because of insurance and financing difficulties emanating from more than $1.9bn worth of payables to existing power producers.
In this regard, the delegation that also included Prime Minister’s Special Assistant Tariq Fatemi, accompanied by Ambassador to China Khalil Hashmi met leaderships of three top companies and the National Energy Administration of China — a centralised energy planning, coordination and policymaking entity — on Thursday in Beijing.
An official statement said the Ahsan Iqbal-led delegation met three top Chinese companies specialising in power transmission and distribution.
The Chinese companies made presentations to the delegation, highlighting their expertise in power transmission and practical application of their expertise in other countries.
The two sides “decided that Chinese experts will meet the Pakistani power sector officials visiting Beijing next week”.
In the meantime, Chinese companies would share a list of questions to collect detailed data related to the power sector of Pakistan, which would allow them to provide informed advice to Pakistani officials.
Moreover, it was discussed that Chinese experts would also meet federal ministers for energy and petroleum, who would be visiting Beijing in the coming week.
After analysing necessary data and meetings with visiting Pakistani dignitaries, the Chinese companies would visit Pakistan to conduct further studies and meet relevant stakeholders. “This exercise will provide a solid base for the high-level talks between China and Pakistan early next month”, the statement said. –Agencies
