CPEC: The Energy Component

China Pakistan Economic Corridor (CPEC) is

a great opportunity for Pakistan that needs a lot
of preparatory work to be done. While energy
crisis has been lingering in the country for
more than a decade owing to the lack of
adequate financing and funding among other
factors, the energy component of CPEC offers
a big opportunity with the investment of
$34billion. The materialization of this
opportunity into reality requires dire attention.
In this context, Institute of Policy Studies (IPS)
organized a roundtable session titled CEPC:
The Energy Component on June 1, 2016.
This brief report is based on the proceedings of
the roundtable, which was addressed by Syed

Akhtar Ali, member energy, Planning

Commission of Pakistan as the main speaker;
while Mirza Hamid Hassan, Member IPSNational Academic Council and former federal
secretary, Water and Power, chaired the
session. A number of energy experts,
government officials, industry representatives,
academics and journalists participated in the
session.
Syed Akhtar Ali in his presentation explained
that CPEC has four components: Energy
Cooperation; Infrastructure Development;
Gwadar Port; and Industrial Cooperation. The
below table shows that CPECs Energys
portfolio overwhelms the other three
components in terms of investment

PROJECTS

US$ Millions

Energy

33,793

Transport and Infrastructure

Roads

6,100

Rail Network

3,690

Gwadar Port

786

Others

44

Total

44,413

The projects to be financed under the energy

component of CPEC1 would add a capacity of
17000MW in to the national grid.

The following recommendations came up

during the interactive session:

The following issues were highlighted by

Mirza Hamid Hassan in his introductory
remarks:

Coal has large part in the energy mix as

compared to the other sources.
Secondly, it largely involve imported
coal. Transportation challenge
The lack of Local implementation
capacity is also the cause of concern.
Expanded capacity of generation needs
expanded capacity of distribution line,
while in CPEC energy component the
focus is on generation capacity.
There are less chances of transfer of
technology.
Financing cost should also be
monitored so that consumers shouldnt
have to bear the burden in the end.
There is little attention to the
development of other forms of energy
like oil and gas especially building the
energy pipelines.

The list of Energy Projects is attached in annexure.

The government should review the

energy portfolio of the China-Pakistan
Economic Corridor (CPEC) because of
the huge proportion of coal-fired
projects.
The government should persuade
China to include financing of DiamerBasha and Pak-Iran gas pipeline
projects under the CPEC.
Although coal and LNG projects were
providing a quick fix solution to the
energy crisis, hydropower should
always remain the top preference for
Pakistan due to the associated benefits
to the national economy, especially
water storage and agricultural growth.
There is need to balance the gap
between generation and distribution
side in the power projects of CPEC.
The aspects of technology transfer and
local
industrialization/capacity
building of indigenous human resource
should not be neglected in the CPEC.
Data available on the Planning
Commissions website about CPEC
needs to be updated regularly.

Annexure 1

CPEC- Power Projects

Sr. No Power Projects

MW

COD

1320

2017-18

Port Qasim Electric Company Coal Fired, Sindh

(2X660 MW)
Sahiwal Coal-fired Power Plant, Punjab (2x660MW)

1320

2017-18

Engro thar Coal-fired, Thar Sindh (2x330MW)

660

2017-18

1320

2,018

SSRL Mine Mouth Power Plant, Thar, Sindh (2x660

MW)
Gwadar Coal Power Project, Gwadar (300 MW)

300

2018

Hubco Coal Based IPP, Coastal (1x660 MW)

660

2,019

Salt Range Mine Mouth Power Project (300 MW)

300

2,018

10

1000

2,016

11

Quaid-e-Azam 9000 MW Solar Park, Bahawalpur,

Punjab
Dawood 50 MW wind Farm, Bhambore, Sindh

50

2,017

12
13

UEP 100 MW wind Farm, Jhimpir, Sindh

Sachal 50 MW Wind Farm, Jhimpir, Sindh

100
50

2,017
2017

15

Suki Kinari Hydropower Station, KPK

870

2,020

16

Karot Hydropower Station, AJK & Punjab

720

2,020

17

Kohala Hydro Project

1100

2,023

CPEC- Energy Projects

Sr. No
1
2

SSRL Thar Coal Block

Surface mine in Block II of Thar Coal field, Thar Sindh

Sr. No
1
2

Transmission Project
South-North Transmission Line
Material-Lahore Transmission Line

Sr. No
1

Mining Projects

Mining Projects
Gawadar Nawabshah LNG terminal and Pipeline Project

Capacity (MTPA)

COD

6.5
3.8

2017
2017

Executing Company
State Grid
State Grid

Executing Company
ISGS

Prepared by:
Waqar un Nisa, Assistant Research Coordinator, Institute of Policy Studies (IPS), Islamabad.