ISLAMABAD – In a major development on Wednesday, the government assured Chinese investors that it would expedite progress on removing the legal barriers that are hindering investment of an estimated $15 billion in the country’s hydel power sector.
An official source said a 10-member delegation led by Chinese Three Gorges Project Corporation (CTGPC) Chairman Cao Guangjing spent a busy day meeting the president, finance minister and other senior officials to sort out the differences in the implementation of the memorandum of understanding signed for hydel power projects in Pakistan.
Pakistan has a hydel power potential of more than 40,000MW, while it has managed to tap only 6,500MW. The CTGPC is interested in investing in mega hydel projects – Bhasha, Dasu, Kohala, Bunji and Korat. It offered to develop multipurpose hydro electric projects through direct financing model based on public-private partnership, the source said.
The delegation offered technical and financial assistance to help Pakistan overcome power shortages within the shortest possible time, provided the legal barriers were removed. The Chinese said they could massively develop hydro and wind power projects, upgrade existing transmission system and provide an integrated solution to the perennial problems of power shortages and disruptions in Pakistan, the source added.
During talks with Finance Minister Dr Abdul Hafeez Shaikh, the Chinese demanded full support from the government for investment in the hydel power sector; the source said, adding that their demand was to do away with the international competitive bidding by giving a free hand to them for investment.
However, the minister said the media and judiciary were fully independent and any violation of rules could be challenged in court and cause further delays. The minister assured that the matter would be taken up with the Ministries of Law and Water and Power to have a considerate view. Meanwhile, a press release issued by the President’s House said the Chinese delegation led by Cao Guangjing held a meeting with President Asif Ali Zardari.
President spokesman’s Farhatullah Babar said the president advised the government to consider tasking the CTGPC to build a run of the river hydro project at Sukkur Barrage and asked Water and Power Minister Syed Naveed Qamar to liaise with the stake holders and prepare project proposal within 60 days.
