PPIB to Decide Fate of 300MW Coal Plant
Pakistan and China are advancing efforts to stabilise Gwadar’s energy and water systems. The Private Power and Infrastructure Board (PPIB) is set to decide the fate of a 300MW coal-fired power project, while Chinese engineers will assist in restoring the Gwadar Port Authority (GPA) Desalination Plant to full capacity.
The 300MW coal project, a key part of the China-Pakistan Economic Corridor (CPEC), is being developed by M/s CIHC Pak Power Company Limited (CPPCL). However, the project faces serious financial and regulatory challenges.
CPPCL Flags Delays and Financial Losses
In a letter to PPIB, CPPCL Chairman Zhao Bo raised concerns about prolonged approval delays, foreign exchange losses, and restrictions on currency conversion. He said these hurdles had made the project commercially unviable.
CPPCL submitted its performance guarantee in March 2025, meeting all conditions for extending its Letter of Support (LoS) until March 2028. Despite this, PPIB demanded a Financial Closing Date (FCD) extension fee. The company argued that this demand contradicts the 2019 LoS, which exempts sponsors from such fees in cases of government delays or force majeure.
Company Warns Against Additional Charges
Zhao noted that CPPCL has already invested over USD 22 million in development, more than twice the NEPRA-approved threshold. He warned that extra charges could jeopardise the project’s future. CPPCL agreed to pay the USD 150,000 fee under protest but reserved the right to seek compensation.
The upcoming PPIB meeting will also discuss Engro Power Gen Qadirpur’s gas depletion plan, IT initiatives under EDEIP, and approval of PPIB’s 2023–24 audited accounts and annual report.
Chinese Experts to Revive Desalination Plant
In a separate high-level meeting chaired by Federal Minister for Planning Ahsan Iqbal, the government decided to seek help from Chinese engineers to fully operationalise the 1.2 million-gallon-per-day seawater desalination plant. The plant, built with a $12.7 million Chinese grant, aims to meet Gwadar’s drinking water needs.
Gwadar Faces Severe Water Shortage
Officials from the Gwadar Port Authority (GPA) and Gwadar Development Authority (GDA) reported that Gwadar is facing an acute water shortage. Both the Ankara and the Swad Dams have dried up due to prolonged drought.
The reactivated Shadi Kaur Dam now supplies around one million gallons daily, while the desalination plant provides up to 600,000 gallons to older parts of the city.
Government Orders Fast-Tracking of Projects
Ahsan Iqbal directed institutions to use all available resources and work with Chinese experts via the Chinese Embassy to restore the desalination plant’s full capacity. He also ordered the fast-tracking of all water and power projects and the completion of a comprehensive water study for long-term sustainability.
Meanwhile, the Ministry of Energy is developing an Integrated System Plan to stabilise Gwadar’s power supply through both local and alternative energy sources.
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