Islamabad: A Chinese power company involved in Gwadar’s energy development has proposed exploring alternative, sustainable power solutions for the port city, signaling flexibility amid ongoing deliberations over a coal-based power project.
M/s CIHC Pak Power Company (Pvt.) Limited, the project company behind the proposed 300-megawatt Gwadar coal-fired power plant, has conveyed its willingness to evaluate integrated and environmentally sustainable energy options to meet Gwadar’s long-term electricity needs. The proposal was shared in a formal communication addressed to the Ministry of Planning, Development and Special Initiatives.
In its correspondence, the company reaffirmed its commitment to addressing Gwadar’s power challenges and acknowledged the government’s continued support for the project under the China-Pakistan Economic Corridor (CPEC) framework. It also highlighted the importance of maintaining momentum on energy planning for Gwadar, given the city’s strategic role as a port and economic hub.
Alongside proposing alternative solutions, the company sought facilitation regarding a procedural matter related to the project’s financial close. It requested the extension of the Financial Closing Date stipulated in the existing Letter of Support, noting that it had already complied with the requirements communicated by the Private Power and Infrastructure Board (PPIB), including extending its performance guarantee and submitting the relevant extension fee.
According to the company, the performance guarantee has been extended until March 2028, and the prescribed fee has been transferred through official banking channels. While engagement with PPIB has continued, the company noted that formal issuance of the amended Financial Closing Date is still pending.
The discussion around alternative energy solutions gained further relevance following high-level engagements between Pakistan and China. During a meeting held in the context of the Prime Minister’s visit to China last year, Pakistani authorities encouraged stakeholders to consider viable alternatives, including renewable energy options, should the coal-based project face commercial or operational challenges.
In response, the project company prepared and submitted an analysis of alternative solutions to PPIB, which includes the possibility of photovoltaic and other sustainable power schemes for Gwadar.
Reaffirming its position, the company stated that it remains ready to work with Pakistani authorities to conduct further technical and feasibility studies aimed at identifying reliable, sustainable, and integrated power solutions for the region, ensuring energy security for Gwadar’s future development.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
