KARACHI – K-Electric has signed an agreement with the state-owned ChinaMachinery Engineering Corporation (CMEC) for the development of acoal-based state-of-the-art 700MW IPP based power project at Port Qasim,Karachi.
The agreement was formally announced at the Pakistan Trade and InvestmentForum held alongside the 2nd Belt and Road Forum 2019 in Beijing, China.This is a major milestone in the economic cooperation between China andPakistan and will directly benefit Karachi, Pakistan’s economic hub.
This project is being developed under an IPP structure, with K-Electric asthe single off-taker. KE holds equity share in this IPP whereas CMEC isboth an equity partner and EPC (Engineering, Procurement, and Construction)Contractor.
The power project already has an approved tariff from NEPRA, whereas landwas also acquired earlier in Port Qasim area of Karachi for the project.
Abdul Razak Dawood, Adviser for Commerce, Textile, Industry & Productionand Investment shared,
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I am sure that this is just one of a series of joint endeavors in thefuture that will translate into a win-win for shared prosperity in theregion and beyond. Stable electricity supply infrastructure is critical forthe country’s sustainable progress, trade and industries and I urge allstakeholders to work together for its early completion to maximize thebenefits to Karachi and Pakistan.
On the occasion, Zhang Chun, Chairman CMEC lauded Pakistan as a land ofopportunity with tremendous economic potential. “We are delighted to be apart of this landmark occasion today and are confident about the role ofthis power plant in addressing Karachi’s power needs and look forward toincreased economic cooperation between China and Pakistan in future aswell,” he said.
China Machinery Engineering Corporation (CMEC) specializes in theconstruction of power projects in generation, transmission, anddistribution and has more than 30 years of experience in the engineeringindustry with exposure in more than 47 countries. CMEC will be ashareholder as well as the selected engineering, procurement andconstruction (EPC) contractor in this project.
