BE2C2 Report; Dec 30, 2016 — State Grid of China will help build a 4,000 megawatt power transmission line in Pakistan in a project valued at $1.5 billion, Pakistan said Friday, the latest in a series of Chinese investments in its South Asian neighbor.
The 660-kv High Voltage Direct Current (HVDC) transmission line will be the first of its kind in Pakistan and will link Matiari town in the southern province of Sindh, near a new power station, to Lahore city in the Punjab province, a key link in transmission infrastructure, the Pakistani government said.
Generated electricity from new coal power plants at Port Qasim, Hub and Thar will be transmitted to northern Pakistan and hydropower from north to south via the Bipole transmission line, says reports.
An agreement on the project was signed Thursday in Beijing between Pakistan’s secretary of water and power, and chairman of State Grid Corporation of China, the government said in a statement.
Construction on the 878km line will begin in January 2017 and should take about 20 months, said a spokesman for the prime minister’s office in Islamabad.
The Chinese state owned company will own and operate it for a period of 25 years on BOOT basis. Thereafter, it will automatically stand transferred to Pakistan.
The project is the latest in a series of big Chinese investments, most of which fall under a planned $55 billion worth of projects for a China Pakistan Economic Corridor. The corridor is a combination of power and infrastructure projects that link western China to Pakistan’s southern port of Gwadar.
Other Chinese investment in Pakistan has included the acquisition of a majority stake by Shanghai Electric of the K-Electric power production and distribution company for $1.8 billion.
Last week, a Chinese-led consortium bought a 40 percent stake of the Pakistan Stock Exchange for an estimated $85 million.