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