Speaking at a press conference he said that probably Imran Khan had no clue to the Chinese investment. He (Imran) should consult his colleagues before issues of any statement on Chinese investment. Asif further said that a $34 billion Chinese investment has been approved by the Chinese government after it assessed the future needs of electricity in Pakistan.
He said that the Chinese government had made financial arrangements with three Chinese banks, including Exim, which would provide loans to Chinese companies for investment in Pakistan's power sector, railways and transport sector, adding that this loan would not reflect on Pakistan's balance sheet.
The Minister further said that the coal-based power projects would not use Chinese coal. He said that investment in Thar Coal project was also included in the $34 billion investment and the rate of return of coal based plants was 17 to 27 per cent. Responding to Imran Khan's allegations that the cost of coal-based power was $1.45 million per megawatt whereas in India it was 55,000 dollars per megawatt, Asif said that India produced 60 to 70 percent material whereas Pakistan had to import all material for power plants. Coal-based power plants would be on imported coal, he added.
About the delay in the appointment of Chairman NEPRA, he said that "NEPRA is most independent body of all the regulatory bodies. It represents all provinces including Khyber Pakhtunkhawa (KPK) and decisions are taken in consultation." He further said that if there were some proposals that Chinese companies would be exempted from PEPRA rules, however, no amendments were made in the NEPRA laws.
He maintained that the government was ready for any scrutiny/accountability in the parliament and ruled out any possibility of bypassing any bidding rule in the award of contracts to Chinese firms. He recalled that the government had published an advertisement for Gaddani Power Projects and bids would also be invited through international competitive bidding for upcoming power plants.
Responding to a question, the minister said that it was mandatory for successful bidders for power projects to produce reports feasibility to Chinese banks with a view to getting loans. "The Government of Pakistan will not give any sovereign guarantees to Chinese investors who will install power plants on the existing PPI mode," he emphasised.
Khawja Asif further revealed that the Government of Pakistan obtained concessional loans from Asian Development Bank (ADB) and the World Bank at 2-4 per cent mark up. Chinese banks will release commercial loans to private companies on a mark-up of 7 percent, in Pakistan, according to him.
Responding to another question, he said that Chinese companies would set up power plants to generate 10,400 MW power to meet the domestic and industrial needs of future. He further announced that soon a policy would envisage the setting up of transmission lines by private sector to expand the capacity of the existing transmission system which could presently carry up to only 16000 MW of power.
He also claimed that PTI leader had paid his utility bills and electricity would be disconnected in case of non-payment of bills. Asif said that Islamabad Electric Supply Company confirmed that Khan had paid two electricity bills of his Bani Gala residence. He also ruled out that the Mian Mansha group was part of U$34 billion investment. "He [Mian Mansha] will also be required to go through the bidding process if he wants to set up a power plant," he said adding that two coal-based power plants were being set up in Thar. He also ruled out any role of Saifur Rehman, former chief of NAB, in power plants deal.