Pakistan, a close ally of China, suffers from chronic electricity shortages and Islamabad has long sought investment in coal-fired power stations which it sees as a solution to the problem. Other countries have balked from such investments, sometimes on environmental grounds.
The new agreements pave the way for Chinese state-owned companies to help build at least four new power stations in Pakistan, while the deals also cover the supply and mining of coal, the prime minister's press office said. "The deals being signed between China and Pakistan are worth $42 billion. The whole investment is being made by China," said Amir Zamir, spokesman for Pakistan's ministry of planning and development. "There is no loan or aid for the energy projects, but pure investment by the Chinese," he told AFP.
APP adds: Pakistan and China on Saturday inked 19 agreements and memorandums of understanding (MoUs), mainly on projects relating to China-Pakistan Economic Corridor and electricity generation to further boost bilateral ties. The signing ceremony was witnessed by Prime Minister Muhammad Nawaz Sharif and his Chinese counterpart Li Keqiang.
Among the agreements signed bilaterally included Economic and Technical Co-operation Agreement between China and Pakistan, Framework Agreement on provision of concessional loan by China to Pakistan, CPEC Energy Projects Co-operation, Government Concessional Loan Agreement on construction of cross-border optical fiber cable system between China and Pakistan for international connectivity of Voice/Data Traffic Project, and Framework Facility Agreement on Suki-Kinari Hydro Power Project between China EXIM Bank and Suki-Kinari.
Both sides also signed an MoU on the outline of the Long-Term Plan of CPEC, Capacity Building for Development of CPEC between NDRC of China and Ministry of Planning, Development and Reforms of Pakistan, minutes of the 3rd JCC of China-Pakistan Economic Corridor, Surface Mine in Block-II of Thar Coal Field and the Engro Thar 2 x 330MW Coal-Fired Power Plant.
The two countries also inked the Memorandum of Facilitation Agreement on Muzaffargarh 660MW Coal-Fired Power Project between CMEC and Punjab government, Pakistan, MOA relating to development of 2 x 660MW Coal-Fired Power Project at Qadarabad, District Sahiwal,
99MW UEP Power Project EPC Framework Agreement, Quaid-e-Azam Solar Energy Park 900MW Solar Power Station Project between ZTE Energy and Punjab government, Implement Agreement on Dawood 50MW Wind Farm between Hydro China Corporation and AEDB Pakistan, EPC Agreement of 6.5 Mt/an Open Pit Mine in Thar Block I, Coal Supply Contract under the Project of Integrated Mine Mouth Coal Power Plant in Thar Block I and MoU for Development of Thermal Power Assets in Pakistan.
Pakistan and China also signed Framework Agreement on Ruyi-Masood Textile Industrial Park and 2 x 135MW self-generation Coal-fired Power Plant between Industrial & Commercial Bank of China (ICBC) and Ruyi-Masood Textile Company of Pakistan and MoU on Coal Power Plant at Port Qasim.
Punjab Chief Minister Muhammad Shahbaz Sharif and federal ministers for Water and Power Khawaja Muhammad Asif, Petroleum and Natural Resources Shahid Khaqan Abbasi, and Planning, Development and Reforms Ahsan Iqbal, and Special Assistant to the Prime Minister Tariq Fatemi attended the meetings.