ISLAMABAD: A Chinese investment firm has approached the Khyber-Pakhtunkhwa (K-P) government with a proposal to purchase 120 MW of affordable hydropower from the Chakdara Swat Corridor, signaling interest in establishing steel mills in the province.
A delegation from China Century Steel Mills recently met with Engr. Tariq Sadozai, Special Assistant to the Chief Minister on Energy, to discuss the potential investment.
During the meeting, Sadozai underscored the crucial role of the energy sector in K-P’s economic development, emphasizing that private investment in natural energy resources could significantly enhance financial stability. He also highlighted establishing the Khyber-Pakhtunkhwa Transmission and Grid System Company (KPT&GSC), aimed at optimizing the province’s electricity transmission system. He expressed confidence that KPT&GSC would set a milestone by harnessing low-cost electricity from completed projects under the Pakhtunkhwa Energy Development Organization (PEDO), calling it a major achievement for the province and its people.
Adviser on Power Tila Muhammad provided further insights, announcing that KPT&GSC is set to initiate three major projects to strengthen the province’s electricity transmission network. The first phase includes the construction of a 40-km transmission line from Kalam to Madyen at a cost of Rs8 billion, expected to be completed within 18 months.
The second phase involves laying an 80-km transmission line from Madyen to Chakdara, with an estimated budget of Rs16 to 18 billion, slated for completion in 48 months.
In the final phase, a modern transmission system will be introduced to distribute cost-effective electricity generated by PEDO’s 171 MW completed projects and its ongoing 1,000 MW initiatives.
The Chinese delegation expressed keen interest in investing in these projects to enhance K-P’s power infrastructure. Sadozai welcomed this potential investment, considering it a significant step toward the province’s economic growth and prosperity.
Background
Meanwhile, discussions have commenced on the potential transfer of the Peshawar Electric Supply Company (PESCO) to K-P government control, following federal directives.
A high-level meeting, chaired by Special Assistant Engr. Tariq Sadozai and PESCO Board Chairman Himayatullah Khan, explored various options, including privatization or provincial management of PESCO. The meeting, attended by senior energy officials, revealed that PESCO is currently incurring annual losses of Rs130 billion due to high line losses and poor recovery rates.
