Iran to Lend Pakistan 55m Dollars for Power Transmission
Dec 29, 2008 - BBC Monitoring
The Export Development Bank of Iran
will extend credit of 55m US dollars to the National
Transmission and Despatch Company (NTDC) and Pakistan
Electric Power Company (PEPCO) for construction
of a 70-km transmission line in Pakistan.
The offer was made by an Iranian delegation
led by Minister for Energy Parviz Fattah during
a meeting with a Pakistani delegation led by Minister
for Water and Power Raja Pervaiz Ashraf here on
Monday to discuss bilateral cooperation on existing
power-sector projects related to import of electricity
The balance 50 km on the Iranian side
will be constructed by Iran. Both sides expressed
keenness to accelerate progress on the power import
project as consultants have already been engaged
to carry out the feasibility study for the import
of an additional 1,000 MW from Iran, for which a
memorandum of understanding has already been signed.
The Iranian minister, while stressing
the need for enhancing bilateral cooperation, offered
the supply of more electricity from Iran. He offered
to export electricity from its port at Chabahar,
which is nearest to the Gwadar port, where a power
plant of 500 MW is being constructed by Iran and
will be ready within the next six months. He said
that Iran was already supplying electricity to many
countries including Syria, Tajikistan and Iraq and
was also keen to export the required electricity
Iran also expressed its interest to
build a dedicated 1,000-MW gas power plant at Zahidan
near the Pakistan border for the export of power
The delegation was briefed by the
Ministry of Water and Power authorities on the current
power situation; short-, medium- and long- term
measures being taken by the government of Pakistan
to bridge the gap between demand and supply; future
plans to inject more electricity into the national
grid to end the energy crisis; and the potential
projects being offered to investors in the coal,
hydroelectric and renewable energy sectors. The
salient features of the power policy and liberal
incentives for private investors were also highlighted
in the briefing.
Pakistan is currently importing 40
MW from Iran for the coastal areas of Baluchistan.
The import of power is being enhanced by an additional
100 MW for the Gwadar port, for which an agreement
has already been signed.
It was informed that Messrs Sunir
of Iran will construct the transmission line on
both sides of the border, for which negotiations
on the award of the contract are in progress.
Raja Pervaiz Ashraf said the government
of Pakistan would welcome such an initiative, extend
full cooperation and work out the modalities. He
said that Pakistan was interested in purchasing
more power transformers of various capacities from
Iran, with speedy delivery. He said that Pakistan
is blessed with immense natural resources for exploration;
thereby, a lot of attractive investment opportunities
are available for the acceleration of business in
the areas of hydroelectric power projects; irrigation;
transmission lines; and thermal and renewable energy
projects including wind, solar and biomass energy
utilization. He also offered the services of Nespak,
which is a leading consultant in the power sector,
to undertake the engineering consultancy services
of large projects in Iran.
Both sides expressed their interest
and resolve to enhance bilateral cooperation and
agreed on a strict timeline and milestones to carry
forward the already initiated projects in the shortest
Originally published by Associated
Press of Pakistan news agency, Islamabad, in English
1615 29 Dec 08.
(c) 2008 BBC Monitoring South Asia.
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