Chinese companies officially signed an engineering procurement construction (EPC) contract for a coal-fired power plant jetty in Balochistan, Pakistan.
Analysts believe the deal will create opportunities in both countries.
The project is being jointly invested in by China Power International Holding Ltd and the Hub Power Co, and it will be constructed as a whole by China Harbour Engineering Co, a subsidiary of China State Construction Engineering Corp, according to a press release issued by China Harbour.
The construction of the jetty is expected to be completed by September 2018, with an uploading requirement of 4.4 million tonnes of coal being met annually.
The port is part of the China-Pakistan Hub 2x660MV coal-fired power plant project located in Balochistan, Pakistan. It will serve as a transport center and support facility for the power plant.
Pakistan and China agreed to enhance cooperation during President Xi Jinping’s official visit to Pakistan in April 2015, Deputy General Manager of China Power Huang Yuntao told the Global Times on Tuesday.
“It was actually one of the priority projects on President Xi’s agenda. So we pushed forward the process and signed a joint venture contract with the Pakistani government during that period,” he noted.
In line with the China-Pakistan Economic Corridor and the ‘One Belt One Road’ (B&R) initiative advanced by the Chinese government, the project has received extensive support from both the Pakistani and Chinese governments, China Harbour President Tang Qiaoliang said.
“The Pakistani government helped us with security issues and also assisted us in the land acquisition process,” Huang said.
“We also regularly submit reports to the National Energy Administration so that the Chinese government can update our progress and offer corresponding suggestions,” he noted.
In recent years, investment from China has moved into Pakistan in sectors such as communications, infrastructure, energy and transportation through various models such as the EPC.