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Published 09 Apr, 2015 09:54am

Chinese group plans to invest in $2.1bn Pakistan coal-fired power project

KARACHI: State-run Power Construction Corp of China Ltd plans to invest in a $2.1 billion coal-fired power project in Pakistan as part of a broad economic cooperation between Beijing and Islamabad, the company said on Thursday.

It will get a 51 per cent stake in the project near Karachi, while Qatar's Al Mirqab Capital will own the remaining 49 percent, Power Construction said in a filing with the Shanghai bourse.

The Chinese company will be responsible for construction and operation of the project, which is scheduled to be completed within 32 months and will mainly use coal from Indonesia.

The project, including the installation of two 660-megawatt high-efficiency power units known as super critical generators, will be part of a broad bilateral deal dubbed as China-Pak Economic Corridor, Power Construction added.

Under the deal, the Chinese government and banks will finance Chinese companies to build $45.6 billion worth of energy and infrastructure projects in Pakistan over the next six years.

The deal further cements ties between Pakistan and China at a time when Pakistan is nervous about waning US support as troops pull out of Afghanistan.

The coal-fired power project will require a total investment of $2.085 billion, nearly $1.6 billion of which will be funded with loans, according to the filing.

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