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  • Jun 3rd, 2017
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The government has included another 1320MW imported coal-fired power project in China-Pakistan Economic Corridor (CPEC) to be established in Rahimyar Khan as an Independent Power Producer (IPP) at a cost of $1.6 billion. According to an official website of CPEC, the executing agency/ sponsors of super critical technology project are Shanghai Electric Power Generation, China Machinery Engineering Corporation / Nishat Power Company.

Power sector experts argue that power consumers will pay Rs 500 billion in 30 years as capacity payments for a plant which will come into operation in 2021 when there will already be a surplus of at least 5000 MW. On April 28, 2017, the Cabinet Committee on Energy (CCoE) headed by Prime Minister Nawaz Sharif had directed the Ministry of Water and Power to immediately initiate process for inclusion of Rahim Yar Khan coal-fired power plant in CPEC priority list with imported fuel ie RLNG, according to agreed procedure for the CPEC projects and in addition to the agreed list of 15 prioritised projects.

Insiders claim that former Secretary for Water and Power, Younas Dagha opposed Rahimyar project in CPEC on the plea that the country would have surplus power after 2018, hence there is no need to include this project in the priority list. The Ministry of Water and Power is abuzz with the rumour that Mr. Dagha was replaced with Yousaf Naeem Khokhar due to his opposition to this project and his successor has since included the project in CPEC.

Earlier in 2016 PPDB had also sought expressions of interest from sponsors interested in development of coal fired power project of 2 x 660 / 1320 MW capacity at Cholistan Tehsil Liaqat Pur, Rahim Yar Khan in Punjab. The Board had asked interested companies to submit their Statement(s) of Qualification (SOQ) in line with the Pre-qualification Document to be purchased from the office of undersigned according to the following procedure. Each interested company/consortium was to register with PPDB on payment of $100.00 or equivalent in Pak Rupees as registration fee. Already registered companies were also eligible. Each PQD was to be evaluated and the first ranked qualifying sponsor would be issued LoI to conduct feasibility study for development of the project in accordance with the provisions of the "Punjab Power Generation Policy, 2006 Revised 2009".

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