Coal, Nuclear

Pakistan, China to create a JV to attract power sector investment

7 October 2008 – Pakistan’s Daily News has reported that Pakistan and China are set to establish a corporation to attract investment for both nuclear and coal power plants, as well as large dams in the former country.

The Pak-China Joint Power Corporation will also help develop technology and technical expertise for new power projects.

Pakistani and Chinese authorities had discussed the proposal during a meeting in the Foreign Office in late September. The framework for the organization would be devised in a minister- level meeting in China in the near future, according to sources from Pakistan’s Water and Power Development Authority (WAPDA).

The new organization will solicit investment from Chinese investors for the Basha dam project, the Thar coal project and Phases 3 and 4 of the Chashma nuclear power plant. Another hydroelectric power project the new corporation would seek funds for is the Neelum-Jehlum hydropower project.

The two new nuclear power projects at Chashma, which will generate 640 MW of power, are estimated to cost Rs129.37bn ($1.7bn). The government has allocated Rs100m for the projects as part of the Public Sector Development Programme (PSDP) for the current fiscal year, and expects to get Rs80.36bn for the projects from international donor institutions and other countries.

The projects are part of the government’s ‘Vision 2030’ plan, which includes generating 8000 MW from nuclear power plants.