A meeting of the ECC chaired by Finance Minister Asad Umar was submitted a summary wherein Power Division stated that Pakistan and China in order to foment cooperation in energy projects entered into the CPEC in 2014 which also included a 300 MW power project at Gwadar, Balochistan.
The ECC was informed that in the 6th meeting of the Joint Cooperation Committee (JCC) on CPEC held on December 29, 2016, it was agreed for early issuance of Letter of Intent (LOI) to China Communication Construction Company Limited (CCCC) or its nominated subsidiary. Subsequently, LOI was issued to the CCCC as the sole sponsor of the project in May 2017 but now the Chinese side informed that the CCCC being a public listed company on the markets in China is encountering time-consuming difficulties and complexities to requisite approval for the investment in the project.
Therefore, it was requested that the CCCC may be submitted with its holding company M/S China Communications Construction Group (CCCG) through its wholly owned subsidiary investment arm CCCC Industrial Investment Holding Company Limited (CIHC).
The request of the CCCC and agreement reached at the 7th JCC was deliberated during the 113th meeting of Pakistan Power Infrastructure Board (PPIB) in January 2018 wherein the PPIB Board allowed substitution of the CCCC with the CCCG through its subsidiary CIHC to be the sponsor and initial shareholder of the project, subject to the approval by the ECC.
The credentials of the incoming company have been verified and found satisfactory by PPIB therefore, the ECC was requested to amend its earlier decision dated 3rd March 2017 so as to allow substitution of China Communication Construction Company Limited (CCCC) with China Communication Construction Group (CCCG) through its wholly owned subsidiary CCCC Industrial Investment Holding Company Limited (CIHC) as sponsor and initial shareholder of the project.
The ECC was told that energy projects entered into the CPEC Project Cooperation Agreement in November 2014 also included 300 MW power project at Gwadar, Balochistan.