China completes 1,320MW power project in Pakistan ahead of schedule; plant can supply electricity to 10m

The plant can satisfy electricity demand of 10 million people and fulfill quarter of the power deficit of Pakistan

Irshad Salim — The 1320 megawatts Sahiwal Coal Power Plant in Pakistan’s largest province of Punjab, that has been completed ahead of schedule, will likely be inaugurated on Monday July 3rd, by China’s Vice Minister Nur Bekri who is also vice chairman of the National Development & Reforms Commission of China.

Bekri, who is one of the Muslim ministers in China, also holds the office of director of the National Energy Administration (NEA) of China, the institution responsible for energy development in the People’s Republic.

Federal Minister for Planning & Development Ahsan Iqbal, Punjab Chief Minister Shehbaz Sharif, and other Chinese and Pakistani officials are expected to attend the ceremony. Prime Minister Nawaz Sharif is unlikely to attend the ceremony due to busy schedule, reported local media.

The construction of the plant took less than 23 months — 22 days ahead of the internal control milestone plan, and 200 days ahead of the contract period, it has emerged.

Built on fast-track for $1.8 billion as an early harvest project under the $62 billion China-Pakistan Economic Corridor (CPEC), the plant is the first overseas large-scale high-efficiency environment-friendly coal-fired power project consisting of 2×660 megawatts supercritical coal-fired generating units using GE state-of-the-art turbines.

According to reports, the plant can satisfy electricity demand of 10 million people and fulfill quarter of the power deficit of the country.

Chinese state-owned companies the China Huaneng Shandong Power Generation Co Ltd and the Shandong Ruyi Technology Group Co Ltd jointly invested in the project and constructed the plant as Independent Power Producer (IPP). The plant will utilize imported coal.

The joint consortium of China’s state-owned Huaneng Shandong which owns 51% of shares, and the Shandong Ruyi Science & Technology Group, which hold 49% of shares have Power Purchase Agreement (PPA) with the Government of Pakistan which will purchase electricity from the consortium at a tariff of 8.3601 US Cents/kWh.

The project is being built on a build, operate, transfer basis in which the plant’s ownership will be transferred to the Government of Punjab after 30 years of operation.

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