Wednesday, May 9, 2012

Pakistan urged to solve issues confronted by Chinese (hydro construction) companies

Note two articles (1) Pakistan urged to solve issues confronted by
Chinese companies, Daily Times (Pakistan) and (2) Chinese investors
urged to disregard "small" hurdles, Business Recorder (Pakistan)


Pakistan urged to solve issues confronted by Chinese companies
Daily Times (Pakistan)
By Zeeshan Javaid
9 May 2012\05\09\story_9-5-2012_pg5_6

ISLAMABAD: Without pledging any single penny for mega and small power
generation projects, China urged Pakistan to facilitate and resolve the
issues faced by Chinese enterprises involved in energy cooperation.

The 2nd and final round of Pak-China Joint Energy Working Group (JEWG)
was held here with Federal Minister of Water and Power Naveed Qamar in
chair and Wu a person in charge of Chinese delegation to review the
financial and other aspects of projects related to energy cooperation.

In a joint statement of Pak-China energy managers, Wu said that ongoing
energy crisis in Pakistan could be resolved my mutual energy cooperation
of both sides, adding,"We believe energy cooperation between Pakistan
and China should continue and future of both is bright."

He expressed serious reservations of Chinese manufacturing company Dong
Fang in context of more than 40,000 tonnes heavy machinery and equipment
having Cost and Freight (C&F) cost of $85 million for 450 megawatts (MW)
Nandipur Hydropower project, which has been detained at the Karachi port
since last two years. He further maintained that Pakistani authorities
should consider seriously the concerns of Dong Fang and should take
measures on war footing basis to release the machinery and equipments
and resolve the issue of demurrage charges.

Qamar assured the Chinese official of complete support to Chinese
entrepreneurs, who have been interested or involved in joint energy
development projects.

He said that Chinese authorities gave positive response in context of
financing different mega and small energy power projects including 969
MW Neelum Jehlum Hydropower Project (NJHP) costing $3.6 billion, 1,100
MW Kohala Hydropower Project (KHP) costing $2.2 billion as well as more
than 17 other hydro, renewable and clean energy hydro power projects.

GENCO Holding Company's Naveed Ismail apologised to the Chinese
authority on behalf of the federal government, Pakistan Electric Power
Company (PEPCO) and GENCO over concerns raised by Chinese enterprise
Dong Fang involved in Nandipur Hydropower project and assured to resolve
the grievances of partners.

He added that the power sector is fully involved with the Ministry of
Finance to resolve the issue of demurrage charges, adding 'within the
next few days, a summary will be sent to the Economic Coordination
Committee meeting to waive off the charges and hope so it would be
resolved till August 2012'.

The Chinese officials urged Pakistan to form a comprehensive power
development plan in order to achieve better energy output.

While addressing the grievances of Chinese enterprises, the federal
minister maintained that the federal government would soon send a
high-level delegation comprising financial and legal managers to discuss
and settle down the concerns of both partners. He also maintained that
the issue raised by Chinese authorities regarding issuance of
No-Objection Certificate would be addressed on immediate basis and
concrete decision would be taken on war footing basis to resolve the issue.

He appraised the significance progress of Chinese enterprises 'Three
Gorges Dam' involved in 1,100 MW Kohala Hydropower as well as other
renewable energy projects and expressed satisfactory mood over positive
indications of financing for NJHP, KHP, Nandipur and several other mega
and small energy development projects.

Qamar urged for financing for particularly mega hydropower projects,
which would definitely be helpful in the near future to overcome the
ongoing energy crisis in Pakistan.

He said that the contact of laying transmission lines under UCH-I, Guddu
and NJHP would be awarded to those companies either Chinese or local,
who will win International Competition Bidding (ICB) besides awarding in
support of Memorandum of Understanding (MoU), adding "To expedite the
process, the advertisement for ICB would be published soon," Qamar

He also informed the Chinese delegation that the government of Pakistan
has been working over the offer made by China for grant of $5 million in
last meeting of Pak-China JEWG.

Pakistani authorities also expressed their keen interest over the
proposal of Infrastructure Fund discussed in last JEWG meeting held in
Beijing in August 2011 and stressed over formation of Banking Consortium
to finance the infrastructure development.

Addressing some other concerns from Chinese Enterprises, head of
delegation, Wu said that infrastructure development is the need of time
to mature the ongoing and forthcoming energy development projects for
easy transportation of machinery and equipments on the site.

Later, signing ceremony of three different wind energy projects was held
including inking Letter of Indent on 150 MW wind energy project between
United Energy Pakistan Limited and China Development Bank Cooperation,
inking MoU of 350 MW wind energy project between Three Gorges and
Pakistani authorities and document inked between Dawood Power Private
Limited and Hydro China Engineering Company Limited for 50 MW power project.


Chinese investors urged to disregard "small" hurdles
May 09, 2012
Business Recorder, Pakistan

Minister for Water and Power Syed Naveed Qamar has urged Chinese
investors to disregard small hurdles and honour friendship with Pakistan.

The second Pakistan-China Joint Energy Working Group (JEWG) led by Wu
Guihui, Engineer-in-chief of National Energy Administration of China
(NEA) as well as top Chinese energy sector investors concluded on
Tuesday in Islamabad.

"We believe that Pakistan-China friendship is higher than the Himalayas;
the issues (relating to energy projects) mentioned are small and are not
deeper than our friendship and so must be ignored," Naveed Qamar added.

According to the minister, Pakistan was facing complex changes and new
challenges in the field of energy, most important of which was the
electricity demand-supply gap.

According to him, the government was committed to resolving the
prevailing energy crisis and attain energy security on a sustainable
basis with China's active support.

"According to estimates, there is currently a deficit of around 6,000
megawatts in our electricity system, which could further grow in future
because of rapidly increasing growth in power demand," Qamar maintained.

He said that while growing energy demand is a big challenge for the
government, yet it provides immense opportunities for Chinese investors
to participate and share the benefits.

Projects which came under discussion at the meeting are: (i) Sindh-Engro
coal mining; (ii) 1200MW coal-fired power plant; and (iii) Sino-Sindh
Resources coal mining and 900MW coal-fired power plant.

In hydel projects, the central focus was on 969MW Neelum-Jhelum
hydropower project, 4,500MW Diamer-Bhasha dam and 1,100MW Kohala
hydropower project.

Transmission system projects included: (i) 500 kV Guddu transmission
line; (ii) 220-kV Uch-II transmission line; (iii) dispersal of power
from Neelum-Jhelum, Kohala, Karot and Azad Pattan hydropower projects;
(iv) Thar-Matiari transmission line project; and (v) dispersal of power
from 630MW Chashma Nuclear C3 and C4.

In renewable energy, the three following projects came under discussion
such as United Energy Pakistan Limited, 150MW, China Three Gorges, 50MW
and Hydropower China 100MW.

Other projects that may come under discussion in future are: 425MW
Nandipur thermal power project, 548MW Kaigah hydropower project and
640MW Azad Pattan hydropower project.

"Pakistan is also receiving enormous support from the Chinese side for
the installation of new nuclear power plants at Chashma, despite
international pressure which reflects the strength of friendship between
the two countries," Qamar said.

Sources said that the Chinese delegation raised a number of questions
over the projects offered by government for investment.

Chairman Wapda Shakil Durrani, officials from power sector,
representatives of Water and Power Ministry and Board of Investment
(BoI) gave detailed answers to queries of Chinese investors.

List of Chinese delegation is as follows: Shi Lishan Deputy
Director-General, of NEA China's Department of International
Co-operation, China, Zhang Shuang of NEA, China, Liao Hongbiao,
Programme Officer, NEA China, Zheng Xia of China Three Gorges
International Corporation and Vice President, DEC Ltd International
Zhang Guorong, Vice-President of China Three Gorges International
Corporation China Wang Shaofeng, Manager of China Three Gorges
International Corporation China Shen Zhendong, Vice-President of
Dongfeng Electric Corporation (DEC) Ltd China Han Zhiqiao, Qin Yonghong
and Li Gang, the Country Manager of export-import Bank of China.

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