



Forced to look away from Iran due to US sanctions on the country, Islamabad is likely to sign an initial deal of 3,000 megawatts (MW) with Beijing during the visit of Chinese president this month.





In a bid to overcome the energy crisis plaguing the country, crippling daily life and the economy alike, Pakistan would import the 3,000MW within the next two years, said officials, adding that Prime Minister Nawaz Sharif also apprised the cabinet meeting on February 23 about the electricity import from China.It was agreed during the meeting that Pakistan would try and showcase as many projects as possible during the Chinese president’s visit. The meeting also reiterated that some of the several energy projects in the pipeline would start generating power by the end of 2017.During the meeting, it was informed that a Chinese delegation had visited the country on January 22 to explore the possibility of providing electricity through Kashgar on the Chinese side to the northern areas of Pakistan.State Grid China also showed interest in the projects, which include the inter-connection project for import of power from China, Matiari to Lahore Transmission Line and Matiari to Faisalabad Transmission Line.A high level team, headed by chairman and featuring the State Grid president and other top officials, met the delegation. The team showed a keen interest in China Pakistan Transmission Line and the south-north transmission line. It was told that two different structures will have to be agreed for domestic and cross-border transmission lines. The chairman committed to start both as soon as possible in order to complete the project within two years.Officials said that Pakistani delegation had taken a three-point agenda for negotiations with the Chinese side.Firstly, Sinosure – China Export and Credit Insurance Corporation – will have to improve the risk coverage policy over Power Purchase Agreement (PPA) for economic corridor projects. Secondly, banks would set up a green channel and fast-track processing of loans for economic corridor projects and, thirdly, nomenclature of two transmission line projects would be included in the actively promoted list.It was also assured that sponsors, bankers and Sinosure would be told to meet the March deadline for financial close. The meeting stated that there were only two hurdles in the way of successful achievement of financial close including the fact that Sinosure had not yet issued its policy to banks and both had not started due diligence for most projects.

Sinosure admitted that the policy had not yet been issued to banks. However, it was informed that two power projects, Suki Kinari and Sachal Wind, had been given the go-ahead for bank credit.

Published in The Express Tribune, March 6, 2015.