• Wednesday, May 29, 2024

News

Pakistan minister seeks Chinese support for hydropower projects

Pakistan is keen on encouraging Chinese firms to venture into the distribution sector, aligning with the government’s push for increased private sector (Representative Image: Getty Images)

By: Vibhuti Pathak

A high-level delegation led by Planning Minister Ahsan Iqbal is in China to discuss the second phase of the China-Pakistan Economic Corridor (CPEC). The focus is on revitalizing over 1800 megawatts of hydropower projects (HPPs) and attracting fresh investment into the country’s transmission and distribution network.

Efforts are underway to convene a meeting of the Joint Cooperation Committee (JCC) of the cabinet on May 22-23, aiming to pave the way for the success of Prime Minister Shehbaz Sharif’s upcoming visit to Beijing in early June. The two sides agreed to hold the next round of the Joint Working Group meeting on Energy (JEWG) as early as possible.

Pakistan is actively engaging with Chinese leadership to revitalize over 1800 megawatts of hydropower projects (HPPs) and attract fresh investment from Chinese companies into the nation’s transmission and distribution network, marking a significant aspect of the second phase of the China-Pakistan Economic Corridor (CPEC).

The two major hydropower projects, one 1,124 MW Kohala and another 700 MW Azad Pattan, have been delayed for more than 18 months because investors have not been able to achieve financial close. Insurance and financing difficulties arise due to over £1.39 billion worth of payables to existing power producers.

Related Stories