Japan’s offer to finance a new 650-megawatt supercritical coal-fired power plant at Lakhra to replace the out-dated 150MW unit may be declined by Pakistan due to the preoccupation of Pakistan Railways with the China-Pakistan Economic Corridor (CPEC) projects and higher power generation cost.
Japan is keen to provide a loan of $1.7 billion for the construction of the new power plant at Lakhra. The loan is linked to the purchase of machinery and plant from Japanese vendors.
The government on Friday reviewed Japan’s offer during a meeting chaired by Finance Minister Ishaq Dar. Senior officials of the Ministry of Finance, Ministry of Water and Power, Pakistan Railways and Economic Affairs Division (EAD) participated in the meeting.
