By: Vibhuti Pathak
A high-level delegation led by Planning Minister Ahsan Iqbal is in China right now to discuss the second phase of China-Pakistan Economic Corridor (CPEC). The focus is on revitalising over 1800 megawatts of hydropower projects (HPPs) attracting fresh investment into country’s transmission and ditribution network.
The delegation is aiming to secure commitments from existing investors, tap into new opportnities prior to the visit of PM Shehbaz Sharif to Beijing.Amid efforts to convene a Joint Cooperation Committee meeting later this month, discussions in Beijing have centered on overcoming obstacles hindering key hydropower projects, enhancing energy cooperation, and bolstering the safety and security of Chinese nationals working on projects within Pakistan.
Pakistan is actively engaging with Chinese leadership to revitalise 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).
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.
Alongside seeking new investments in transmission projects, Pakistan is keen on encouraging Chinese firms to venture into the distribution sector, aligning with the government’s push for increased private sector participation through mechanisms like privatisation or long-term concession agreements.
Two major Hydropower Projects, delayed
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.
In this regard, the delegation that also included Prime Minister’s Special Assistant Tariq Fatemi, accompanied by Ambassador to China Khalil Hashmi met leaderships of three top companies and the National Energy Administration of China on Thursday (9) in Beijing.
An official statement said the Ahsan Iqbal-led delegation met three top Chinese companies specialising in power transmission and distribution.
The Chinese companies made presentations to the delegation, highlighting their expertise in power transmission and the practical application of their expertise in other countries. The two sides “decided that Chinese experts will meet the Pakistani power sector officials visiting Beijing next week”.
In the meantime, Chinese companies would share a list of questions to collect detailed data related to the power sector of Pakistan, which would allow them to provide informed advice to Pakistani officials.
Moreover, it was discussed that Chinese experts would also meet federal ministers for energy and petroleum, who would be visiting Beijing in the coming week.
After analysing necessary data and meetings with visiting Pakistani dignitaries, the Chinese companies would visit Pakistan to conduct further studies and meet relevant stakeholders. “This exercise will provide a solid base for the high-level talks between China and Pakistan early next month”, the statement said.
Green Corridor reminder
The delegation also put on the agenda the discussion of the ‘Green Corridor’ with Zhang Jianghua, chairman of the National Energy Administration of China. They ‘recalled’ the announcement made by Vice Premier He Lifeng during his visit to Pakistan a few months ago, that the green corridor was an important pillar of the second phase of CPEC.
They also quoted the vision of PM Shehbaz Sharif’s government ‘to revive the original momentum of CPEC’ and their deep commitment to the high-quality development of CPEC.
The delegation ensured to mention the first phase of CPEC that had helped overcome power outages and that the Sharif government wanted to diversify the energy mix during the next phase and move towards clean and renewable energy.
Both sides discussed new initiatives to improve the energy management system, aimed at reducing theft and line losses.
Safety and security of Chinese nationals
The Iqbal-led delegation also briefed the Chinese side on the steps taken by the government of Pakistan to enhance the safety and security of Chinese nationals on several projects in Pakistan.
Both sides also discussed diversifying the energy mix to produce electricity in the country. The delegation visited Beijing for a ‘reminder’ per se for the second phase of CPEC.
