Investment under CPEC to reach $62 bn by 2030: Report

ISLAMABAD, Jan 4 (APP):The total planned investment under China Pakistan Economic Corridor (CPEC) is $62 billion between FY2015 and FY2030, out of which $27.4 billion projects have been realized, with energy sector (power generation, coal mining and transmission lines) representing 76%.

It covers power generation projects (both fossil fuel and renewables) of about 11 GW. To-date, about 5,520 MW energy projects have been completed. More than half of these projects are coal-based power plants, according to an annual report on renewable energy released by Sustainable Development Policy Institute (SDPI).

The report says the completed projects under the corridor include 1320 MW Sahiwal Coal-fired Power Plant, 1320MW Coal-fired Power Plant at Port Qasim, Karachi, 1320MW China Hub Coal Power Project, Hub, Balochistan, 660 MW Engro Thar Coal Power Project, 1000 MW Quaid-e-Azam Solar Park, Bahawalpur, 50 MW Hydro China Dawood Wind Farm, Gharo, 100 MW UEP Wind Farm, Jhimpir, Thatta, 50 MW Sachal Wind Farm, Jhimpir, Thatta, 100 MW Three Gorges Second and Third Wind Power Project, Matiari to Lahore ±660 KV HVDC Transmission Line Project, and 720 MW Karot Hydropower Project, AJK/Punjab.

The projects that are under construction include 1320 SSRL Thar Coal Block-I (2×660MW), 330MW HUBCO Thar Coal Power Project, 330MW HUBCO ThalNova Thar Coal Power Project, 884MW Suki Kinari Hydropower Project, KP, and 300 MW Coal-Fired Power Project, Gwadar.

Similarly the CPEC projects that are under consideration include 1124 MW Kohala Hydropower Project, AJK, 700.7MW Azad Pattan Hydropower Project, AJK/Punjab, 1320 MW Thar Mine Mouth Oracle Power Plant, 50 MW Cacho Wind Power Project, and 50 MW Western Energy (Pvt.) Ltd. Wind Power Project.

The report said that Pakistan has committed in NDC 2021 that no new coal plant will be financed. Balance of Payment (BoP) crisis, along with high circular debt and surplus capacity have already scaled back future CPEC investment, as indicated by the shelving of the 1,320 MW Rahim Yar Khan coal power project in 2019.

In November 2020, Pakistan announced suspending coal-based power projects under planning and initial construction
stages as part of Pakistan’s climate action efforts and formalized this under the country’s revised 2012 NDCs.

The decision was a follow-up to a report from an independent nine-member committee set up in 2019-20 to review the independent power project contracts, including CPEC contracts, which offered higher returns compared with global standards, the report added.