Shanghai Electric Took Back Their Offer Of 9billion Dollars To Invest In The Karachi Power Infrastructure
Shanghai Electric Took Back Their Offer Of 9billion Dollars To Invest In The Karachi Power Infrastructure: China’s Shanghai Electric took back their offer to secure Karachi Electric Limited due to the government delay in the announcement of multiyear tariffs and other approvals.
In June 2017, the Chinese power company made a public announcement of intention to acquire the K-Electric.
The three-firm consortium of Abraaj Group, a Dubai-based private equity, in partnership with Al-Jomaih Group of Saudi Arabia and National Industries Group of Kuwait, operates in the name of KES Power, which is the parent company of K-Electric.
Earlier National Electric Power Regulatory Authority (NEPRA), has turned down Karachi electric request to increase the tariff for operational sustainability. Due to the existing instability of tariffs Shanghai electric power has withdrawn acquisition of Karachi Electric (KE). Media sources shared that there has been no communication between Nepra and KE’s management since December last year while Shanghai Power already unveiled 9 billion dollars of investment plan on the Karachi power infrastructure.
In the context of foreign investments coming to Pakistan, this withdrawal of acquisition may set a negative example and will damage the confidence of the potential investors in energy projects particularly.
Shanghai Electric will make a fresh public announcement of their intention if the matter between KE and NEPRA gets to some solution.
While in another development
$50million Steel Mills Construction Work Started
Al Haj Asia Star Steel Company (Al Haj Group) had signed a memorandum of understanding (MoU) in Beijing with Xinjiang Steel Group on a 50 million dollar steel mill in Pakistan last year. Through this project at Gadoon Industrial Estate, 500,000 tonnes of steel annually would be produced and 2,500 new jobs will be created.
They have also agreed to establish a direct hot roll steel rebar industry in Khyber Pakhtunkhwa. For this Khyber Pakhtunkhwa Economic Zones Development and Management Company (KPEZDMC) has provided 17 acres of land for the project at the Gadoon Industrial Estate. KPEZDMC has urged the federal government to include industrial zone at Rashakai on priority.