KARACHI: K-Electric has signed an agreement with the state-owned China Machinery Engineering Corporation (CMEC) to develop a 700 megawatt Independent Power Producer (IPP) based power project at Port Qasim, Karachi.
The project was formally announced at the Pakistan Trade and Investment Forum held alongside the 2nd Belt and Road Forum in Beijing, China. The project agreement and contracts were signed by K-Electric Chief Executive Officer Moonis Alvi, and CMEC Chairman Zhang Chun in the presence of Abdul Razak Dawood, adviser for commerce, textile, industry and production and investment. This is a milestone project in the economic cooperation between China and Pakistan and would directly benefit Karachi, Pakistan’s economic hub.
Abdul Razak Dawood, adviser for commerce, textile, industry and production and investment said, “I am sure that this is just one of a series of joint endeavours in the future that will translate into a win-win for shared prosperity in the region and beyond. Stable electricity supply infrastructure is critical for the country’s sustainable progress, trade and industries and I urge all stakeholders to work together for its early completion to maximise the benefits to Karachi and Pakistan.”
This project was being developed under an IPP mode structure, with K-Electric as the single off-taker. KE holds equity share in this IPP, whereas CMEC was both an equity partner and EPC (Engineering, Procurement and Construction) contractor. The power project already has an approved tariff from National Electric Power Regulatory Authority (NEPRA), whereas land has also been acquired in Port Qasim area of Karachi for the project.
CMEC Chairman Zhang Chun lauded Pakistan as a land of opportunities with tremendous economic potential. “We are delighted to be a part of this landmark occasion today and are confident about the role of this power plant in addressing Karachi’s power needs and look forward to increased economic cooperation between China and Pakistan in future as well,” he said.
Speaking at the signing ceremony, KE CEO Moonis Alvi said the current project was one more in a series of investments from K-Electric to further strengthen the city’s power infrastructure and to enable Karachi to fulfil its economic potential.
“KE has invested more than $2.1 billion in infrastructure upgrades across the energy value chain over the last nine years and plans to invest $3 billion over the next few years. We are committed to increase generation as well as to upgrade Karachi’s transmission and distribution network,” Alvi said, adding that the company’s goal was to commission the project at the earliest. “We are confident we can do this with the continued support of policy makers and an enabling business environment,” he added. Construction of the plant was expected to commence in the first quarter of the next fiscal year. Once the project comes online, it would not only help meet the growing power demand in Karachi and its adjoining areas, but would also allow KE to diversify its fuel mix.
Source: The News