Pakistan and China have signed a monumental $4.8bn deal to construct a new nuclear power plant in Pakistan, the Business Times reported.
On June 20, the agreement signed between China National Nuclear Cooperation and the Pakistan Atomic Energy Commission (PAEC) solidified the growing partnership between the two nations in the energy sector. The $4.8bl deal to build what would be the seventh Chinese nuclear power plant in the South Asian nation.
The new power plant will be built in the central Pakistani city of Chashma, where China has already constructed four nuclear power generation units. With a combined output of nearly 1,230 megawatts, these existing units have been instrumental in addressing Pakistan's energy needs. The upcoming 1,200-megawatt project will further enhance the country's power generation capacity.
China will deploy its HPR 1000 technology, also known as Hualong One, for the construction of the nuclear power unit. This technology has been successfully utilized in two other nuclear facilities in Pakistan. The implementation of HPR 1000 reactors is part of Pakistan's broader strategy to diversify its energy mix and provide affordable electricity to industries and the general public.
Prime Minister Shehbaz Sharif oversaw the signing of the memorandum of understanding between China National Nuclear Cooperation and the Pakistan Atomic Energy Commission. Furthermore, he expressed gratitude to China for its substantial investment in the project, highlighting the message it sends about the confidence Chinese companies have in Pakistan. Sharif also acknowledged the more than $100mn discount offered by China for the Chashma 5 power plant. Despite a delay in the project's commencement, the Chinese partners maintained their commitment and did not revise the costs.
"Investment from China in this project to the tune of $4.8bn sends a loud and clear message that Pakistan is a place where Chinese companies and investors continue to show their trust and faith," Sharif stated.
Pakistan's energy sector has faced numerous challenges, including an economic crisis and a balance of payments deficit. This project is seen as a vital component of the country's energy security plan, aimed at overcoming these challenges and providing relief to both the industry and the general population.
China has been a key partner for Pakistan in the nuclear energy sector. In addition to the upcoming Chashma 5 power plant, China has already constructed two nuclear power plants in Karachi, each with a generation capacity of 1,100 megawatts. These third-generation Hualong One reactors, known as K2 and K3, cost roughly $10bn, and have significantly contributed to Pakistan's nuclear energy production, totaling over 3,500 megawatts.
"K2 and K3 are fully functional and supply 2,200 megawatts of electricity to the national grid. Similarly, nuclear power plants at Chashma are contributing more than 1,300 megawatts," a PAEC spokesman noted.
In fact, besides China, Canada back in the day also aided Pakistan. Canada helped Pakistan build its first nuclear power plant in 1972 in Karachi, producing about 80 megawatts of electricity. It is expected to be shut down soon after having served its purpose for about the full extent of the planned operation.
The collaboration between China and Pakistan extends beyond the energy sector. The China-Pakistan Economic Corridor (CPEC), which falls under China's Belt and Road Initiative, has witnessed over $20bn in Chinese investments in infrastructure projects, including road networks, power plants, and ports. CPEC has not only strengthened economic ties between the two nations but also addressed Pakistan's energy crisis and generated employment opportunities.
Officials in both countries say the collaboration, an extension of Beijing's global Belt and Road infrastructure initiative, has created tens of thousands of jobs and ended Pakistan's crippling energy crisis.
Comments (0)