ISLAMABAD: PLM-N led coalition government has decided to shelve a CPEC’s coal-fired power plant at Gwadar due to the high cost of imported fuel and its preference for local resources, Express Tribune reported on Sunday.
According to the report the government had also recently informed the sponsor of the project – China Communications Construction Group (CCCG) – about its decision. The company had planned to set up the plant at a cost of $542 million.
Planning Minister Ahsan Iqbal has asked the authorities concerned to suggest alternative options that will be offered to the sponsor in lieu of the imported coal-based power plant, according to the sources.
The authorities have been asked to conduct feasibility studies in order to find alternative options. The decision marks a departure from the commitment that Pakistan gave to China in February this year. Pakistan had agreed to include the 300-megawatt Gwadar power plant in its highest priority schemes for the payment of invoices after commissioning of the project.
The government also agreed to include the much-delayed power plant in its highest priority schemes for the clearance of electricity dues in a bid to address the biggest concern of China.
