Chashma plant second phase delayed

Published November 9, 2003

ISLAMABAD, Nov 8: The setting up of the second phase of the Chashma nuclear power plant at a cost of $700 million has been delayed as the financial aspects of the project are still being finalized.

Sources told Dawn here on Saturday that a team comprising financial and technical experts is expected to visit China early next year to sort out various details of the 300mw project popularly known as Chashma-II.

A senior finance ministry official said it was not correct to presume that the Chashma-2 had been abandoned as no agreement could be reached about it during President Musharraf’s visit to China.

“Chashma-2 will be constructed. There is no cause for concern,” the official said, adding that negotiations were still going on between Islamabad and Beijing in this connection.

However, the sources said China was no longer manufacturing 300mw power plants after it upgraded the facility to 600mw with the help of a US firm, Westing House. Now the US company did not want the Chinese government to transfer the technology to any third country, taking a plea that the plant was exclusively built for China.

Machinery for the Chashma-1 was manufactured in China and was later handed over to Pakistan on a turn-key basis. However, it has been made clear to China this time that components of the Chashma-2 would be manufactured in Pakistan.

“Perhaps this arrangement is acceptable to China and that is why more talks are required to finalize the issue,” a source said.

Earlier, China had signed an agreement with Iran for the manufacturing of a 300mw nuclear power plant which was cancelled on the pressure of the US government.

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