Pakistan is intensifying its efforts to secure Chinese investment for the revival of over 1800-megawatt hydropower projects (HPPs) and bolster its transmission and distribution network as part of the second phase of the China-Pakistan Economic Corridor (CPEC).
With a keen eye on Prime Minister Shehbaz Sharif’s forthcoming visit to Beijing, authorities are hustling to convene a meeting of the Joint Cooperation Committee (JCC) of the cabinet on May 22-23, aiming for a successful outcome.
A high-profile delegation led by Planning Minister Ahsan Iqbal is currently in China, engaging with existing investors and financial institutions while seeking to attract new firms to participate in Pakistan’s energy infrastructure development under CPEC’s second phase.
The delegation’s focus includes not only fresh investments in transmission projects but also encouraging Chinese firms to venture into the distribution sector, aligning with Pakistan’s push for increased private sector involvement, possibly through privatization or long-term concession agreements.
The spotlight of the delegation’s efforts shines on two major hydropower projects – the 1,124 MW Kohala and the 700 MW Azad Pattan – which have faced delays of over 18 months due to financing and insurance challenges stemming from substantial payables to existing power producers, totaling over $1.9 billion.
During their visit to Beijing, the delegation, comprising Prime Minister’s Special Assistant Tariq Fatemi and Ambassador to China Khalil Hashmi, engaged in high-level discussions with leaderships of three top Chinese companies specialized in power transmission and distribution, as well as officials from the National Energy Administration of China.
The Chinese companies showcased their expertise in power transmission and shared practical insights from similar projects in other countries. Both sides agreed to facilitate further dialogue, with Chinese experts set to meet Pakistani power sector officials and federal ministers for energy and petroleum in subsequent visits.
The discussions also encompassed the broader vision of the CPEC’s second phase, emphasizing the importance of initiatives like the Green Corridor in advancing high-quality development and diversifying Pakistan’s energy mix towards clean and renewable sources.
Additionally, the delegation highlighted Pakistan’s commitment to enhancing the safety and security of Chinese nationals involved in various projects across the country, reinforcing the bilateral cooperation framework.
As the dialogue progresses, both Pakistan and China are gearing up for the next round of the Joint Working Group meeting on Energy (JEWG), aiming to expedite the implementation of critical hydropower projects such as Azad Pattan and Kohala, while exploring avenues for further collaboration in energy management and infrastructure development.
The ongoing engagements between Pakistan and China underscore a shared commitment to advancing the energy sector under CPEC, with a strategic focus on sustainable development and mutual prosperity.
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