Chinese company eyes hydropower for steel mills in KP as a delegation discussed opportunities.
A Chinese investment firm has expressed interest in acquiring 120 MW of cost-effective hydropower from the Chakdara Swat Corridor to establish steel mills in Khyber-Pakhtunkhwa (K-P).
A delegation from China Century Steel Mills met with Engr. Tariq Sadozai, Special Assistant to the Chief Minister on Energy, to discuss the proposal. During the meeting, Sadozai underscored the critical role of the energy sector in the province’s economic growth and emphasized the importance of private sector investments in natural energy resources.
He also discussed the establishment of the Khyber-Pakhtunkhwa Transmission and Grid System Company (KPT&GSC), which aims to optimize the province’s electricity distribution. He expressed optimism that KPT&GSC would set a milestone by utilizing the affordable electricity produced by the Pakhtunkhwa Energy Development Organization (PEDO), marking a significant achievement for the region.
Adviser on Power, Tila Muhammad, provided a briefing on three upcoming projects aimed at improving K-P’s electricity transmission network. The first phase includes a 40-km transmission line from Kalam to Madyen, costing Rs8 billion and expected to be completed in 18 months. The second phase involves constructing an 80-km transmission line from Madyen to Chakdara, with an estimated budget of Rs16-18 billion and a completion timeline of 48 months.
In the third phase, a modern transmission system will be developed to distribute the electricity generated by PEDO’s completed 171 MW projects and its ongoing 1,000 MW projects. The Chinese delegation showed interest in investing in these initiatives to enhance the province’s energy infrastructure. Special Assistant Tariq Sadozai welcomed this interest, viewing it as a step towards K-P’s development and economic progress.
Following federal government directives, discussions have begun on transferring the Peshawar Electric Supply Company (PESCO) to K-P’s provincial administration. A meeting, chaired by Special Assistant Engr. Tariq Sadozai and PESCO Board of Directors Chairman Himayatullah Khan, explored various options, including privatization or provincial control.
Attended by Secretary Energy & Power Mohammad Zubair Khan, the CEOs of PESCO and PEDO, and senior officials, the meeting highlighted PESCO’s financial challenges. The company is currently incurring an annual loss of Rs130 billion due to line losses and inefficient recovery mechanisms.
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