Coal Fired Electricity Project of Sahiwal May Close
Coal Fired Electricity Project of Sahiwal May Close: Sahiwal Coal Power Project inaugurated in May last year, is the first energy sector’s initiative under multi-billion dollars China-Pakistan Economic Corridor (CPEC). It was built with the cost of $1.6 billion and construction on the project started in March 2015. The project was completed in a record period of 22 months. It is a joint-venture of China’s state-owned Huaneng Shandong Electricity Limited (owning 51% of stake) and textile firm Shandong Ruyi Group (holding 49% stake). They built the project on a Build, Operate and Transfer (BOT) basis. The plant’s ownership will be transferred to the government of Punjab after 30 years of operation.
Sahiwal power plant is first of its kind coal fired power plant in the country having highly efficient machinery for controlling pollution and carbon emissions. Under CPEC initiative, energy projects are estimated at $38 billion, aiming to add 17,045 megawatts to grid.
Coal fired electricity project of Sahiwal having 1,320 megawatts generation capacity is about to get close and ineffective. It is a Chinese owned project and our government did not pay Rs.20 billion in power dues of the project. The project’s management raised issue of nonpayment with the authorities through diplomatic channels. To the management of coal fired power plant, government has to pay dues in order to bridge the gap between demand and supply with low cost electric supply. Instead of giving partial payments, Pakistani government has to submit monthly installment of Rs.10 billion.
However official of power ministry have denied this saying that they are making payments to the power company. Major chunk is spent on coal buying while in freight charges Pakistan railway demands advance payment for coal transportation.