ISLAMABAD, May 8: Pakistan on Tuesday assured Chinese investors that all bottlenecks hindering completion of on-going energy projects initiated in collaboration with Chinese private sector would be removed to help the country overcome its power crisis.

The assurance was given by Federal Minister for Water and Power Syed Naveed Qamar while speaking at the concluding session of the second meeting of Pakistan-China Joint Energy Working Group here on Tuesday.

Administrator of China National Energy Administration, Wu Guihi, highlighted the difficulties being faced by Chinese companies in the completion of on-going projects in the energy sector.

He said that measures be taken to improve protection and investment environment, land acquisition issues and better coordination between government agencies for prompt clearance of projects.

He raised the issue of project financing and said it should be resolved.

“We believe cooperation between the two countries in energy sector has great potential, and Pakistan should give more attention to the development of more power projects,” he said.

At the energy working group, the representative of Dong Fang Electric (DFE) Corporation raised serious issues which have delayed completion of Nandipur power project.

The 425MW combined cycle power plant launched in 2008 could not be completed within its stipulated period of 30 months since its 40,000 tons plant machinery had been stuck up at Karachi port due to administrative reasons.

The DFE representative urged the government to take urgent measures for release of plant machinery and save the company from growing burden of demurrage costs and enable the company to commission the plant.

Mr Naveed Qamar assured the Chinese company that issues relating to Nandipur power project would be resolved and measures would be taken to waive the demurrage costs.

Mr Qamar stated that there have been positive developments in the case of Neelum-Jhelum power project and Kohala power project.

He stated that long-standing issue of Guddu transmission lines would be resolved soon and no more extensions would be granted.

The government is sending a team to China to sort out legal and financial issues relating to the project, he said.

The minister welcomed the interest of Chinese companies in development of wind power projects in Pakistan, and assured them of government’s support and facilities to set up such projects.

Later speaking to newsmen, Mr Naveed Qamar said that Pakistan needs financing of major power projects and some good progress had been made for such projects.

He said that there have been positive indications for financing of Neelum-Jhelum power project and Sindh-Angro Coal mining and power project.

He said that China has shown interest in financing as well as equity partnership for construction of Diamer-Bhasha dam project.

In addition to China Three Gorges Corporation, the government would consider participation of private sector in the project, he said.

He said that a $20 million infrastructure development fund, as suggested by China during the first working group meeting, will soon be created.

He disclosed that Nepra has been asked for tariff for the financial close of Kohala and Khan-Khwar power projects.

At the end of the second round of working group meeting, three memoranda of cooperation were signed for setting up of two wind-power projects in Sindh.

The United Energy Pak-istan Ltd signed agreements for financing of the first phase of 500MW wind power project under which wind power project of 150MW will be set up in Sindh.

The third agreement related to acquisition of shares of Dawood wind power project by the Hydro-China Dawood Wind Power project.

For Dawood Group, the agreement was signed by Mr Rafiq Dawood, Chairman of First Dawood Investment Bank. Financial close of the project costing $135 million is expected by the end of this year, while work on the project would begin in June 2013.