Port Qasim Power Project
The 1,320 megawatt Port Qasim Power Project comprises two 660 megawatt supercritical coal power plants, one of which was inaugurated in December 2016 as part of the China–Pakistan Economic Corridor. The $2.09 billion project is located on 330.7 acres at Port Qasim, 37 kilometers east of Karachi in Sindh Province. The project is part of a group of 14 energy projects which fall under the fast-tracked "Early Harvest" program of the $46 billion China Pakistan Economic Corridor project.
The plants were built on a "Build-Own-Operate" basis, and were constructed and will be operated by the, a firm jointly financed by Qatar's Al-Mirqab Capital and China's Power Construction Corporation, a subsidiary of Sinohydro Resources Limited.
Project Details
The project consists not only of the power plants themselves, but also will include the construction of a jetty for exclusive use of the power plant for coal importation. The estimated annual coal consumption for the plants will be 4.66 million tons, and enough annual power for an estimated 3-4 million households will be generated.
The plants each consist of one boiler, steam turbine and generator, and are fueled by sub-bituminous coal which is offloaded at the project's coal jetty. Electricity will be connected to the electric grid network K-Electric via a 500 kilovolt AC transmission line. The plant's gross efficiency is equal to or greater than 41%, while the net efficiency is equal to or greater than 38%.
Additionally, living quarters for up to 700 full-time workers were constructed at the site, with additional temporary housing facilities for 11,000 construction workers divided into a unit for 2,000 Chinese construction workers, and another unit for 9,000 Pakistani construction workers, with all construction materials for living quarters provided by Chinese manufacturers.
Construction and Operation
Construction commenced in May 2015, and the first unit inaugurated in December 2017. The plants were built on a "Build-Own-Operate" basis, and is to be operated by the, a firm jointly financed by Qatar's Al-Mirqab Capital and China's Power Construction Corporation, a subsidiary of Sinohydro Resources Limited.
Financing
Al-Mirqab Capital will own a 49% stake in the project, and while Power Construction Corporation, which will own a 51% stake in the project. The individual companies will invest $521 million, while the Exim Bank of China will lend those companies the remaining $1.56 billion required for construction.
Tariff
The Government of Pakistan will be contractually obliged to purchase electricity from the plants for thirty years at a cost of 8.12 US cents per unit.
Commissioned
In November 2017, the first 660MW unit of the power plant was synchronised to the national grid. The power plant was completed and commenced full operations on 25 April 2018.
Qatar’s Al-Thani Group to divest its stake
The Port Qasim Electric Power Company power plant, ⚡ Recent developments in the China-Pakistan Economic Corridor have seen Qatar's Al-Thani Group, through its investment arm Al-Mirqab Capital, formally signal its intent to divest its 49% stake in the 1,320 MW Port Qasim coal-fired power project. The $2.09 billion joint venture, located near Karachi and co-owned with China's Power Construction Corporation, is a critical part of Pakistan's energy infrastructure. The Qatari group's decision, which follows an investment of over $1 billion, is primarily attributed to chronic payment delays from the Central Power Purchasing Agency, contributing to the country's rising circular debt crisis. The Port Qasim Electric Power Company has warned the Pakistani government of a potential suspension of operations if the considerable outstanding dues, part of an estimated Rs. 400 billion owed to Chinese CPEC Independent Power Producers, remain uncleared. This move highlights ongoing challenges for foreign direct investment in Pakistan's power sector, despite diplomatic interventions from senior Qatari officials.