ISLAMABAD: Chinese company CIHC Pak Power Company (Pvt) Ltd (CPPCL) has expressed conditional willingness to continue work on the 300-MW Gwadar coal power plant if both the Pakistani and Chinese governments decide to abandon the project, according to well-placed sources within the Private Power Infrastructure Board (PPIB).
The 300-MW coal-fired plant, part of the China-Pakistan Economic Corridor (CPEC), has faced numerous delays since the issuance of its Letter of Support (LoS) in August 2019. Despite six extensions granted by PPIB, CPPCL failed to meet the Financial Closing (FC) deadline, mainly due to challenges like tariff disputes with NEPRA, reluctance from lenders, and issues related to land lease and environmental approvals.
Although the project’s Security Package Agreements were finalized in April 2021, construction at the site has not progressed as anticipated. Efforts by the Government of Pakistan, including revisions in tariff and direct discussions with Chinese officials, have yet to yield results. In its latest response, CPPCL reiterated its concerns over the tariff rate and suggested that both governments jointly explore alternative options if the original project is scrapped.
The power plant, considered a strategic part of CPEC, remains in limbo as both parties deliberate the next steps.
Story by Mushtaq Ghumman
