Bottlenecks thwarting Chinese investment in hydel power

ISLAMABAD – The state-owned China Three Gorges Project Corporation (CTGPC) has shown willingness to invest in four large hydropower power projects in Pakistan – Bhasha, Bunji, Kohala and Karot – provided the government removes legal bottlenecks in the award of contracts.
An official source said the demand was made by the head of a 10-member Chinese delegation, China Three Gorges Project Corporation (CTGPC) Chairman Cao Guangjing, during a meeting with the Minister for Water and Power Syed Naveed Qamar on Tuesday. Pakistan has already signed a Memorandum of Understanding with the CTGPC for the construction of 7,100MW Bunji Hydropower and 1,100MW Kohala Hydropower projects last year.
The projects were delayed after it was pointed out to the government that under the rules, no project could be given to any company on a single-bid basis. No mega project could be awarded without following the Public Procurement Regulatory Agency (PPRA) rules and international competitive bidding (ICB).
The government could make amendments in the rules, but the mandarins were uncooperative, as they consider their flexibility could be fatal, as the US was against any Chinese investment in Azad Jammu and Kashmir (AJK). The US pressure on Pakistan to keep the Chinese away from investment in AJK had already delayed the start of these key projects for a number of years, the source said.
But on the other side, the Chinese were also not interested in following PPRA rules or participating in ICB for the projects for which they have already signed MOUs. Chinese firms are demanding that they should be given projects on single-bid basis. Finding no support from the bureaucracy, the government as a last resort had sought legal opinion from the Ministry of Law on these MoUs, he added.
Meanwhile, a statement issued by the Ministry of Water and Power said that a Chinese delegation led by CTGPC Chairman Cao Guangjing held a meeting with Minister for Water and Power and Privatisation Syed Naveed Qamar. CTGPC Chairman said that they were looking for investment and cooperation for 1,100MW Kohala Hydropower, 7,100MW Bunji Hydropower and 720MW Karot hydropower projects in Pakistan.
He said that they were all set to start construction of 50MW wind power project in Jhimpir, Sindh and would complete it by July next year. The company plans to install 2000MW wind power and 300MW solar power projects in Punjab and Sindh. The company also plans to start manufacturing renewable energy equipment in Pakistan.
The minister thanked the Chinese government and CTGPC for their keen interest in the development of energy sector. He said that the government was making all possible measures to complete the formalities of the hydel power projects. He asked WAPDA and CTGPC to work together and find out solution to all outstanding matters in the hydropower generation sector.