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Company to build power station in Pakistan

By Du Juan | China Daily | Updated: 2015-04-10 08:19

Sinohydro Resources takes lead in $2.09b JV with Qataris; Karachi plant offers 'good return'

Sinohydro Resources Ltd, a subsidiary of Power Construction Corp of China Ltd, has signed an agreement with the Doha, Qatar-based Al Malaki Group to jointly fund a $2.09 billion coal-fired power station project in Pakistan.

The Chinese company, often called PowerChina, will be responsible for 51 percent of the total investment, with Al Malaki taking the remainder. Sinohydro will take charge of investment, construction and operation.

Sinohydro Resources provides engineering and construction services globally with a focus on renewables, thermal power and power transmission projects. It has also expanded its business into roads, highways and port construction.

The project, which will serve as an emergency power station, is located near the coastal city of Karachi and will involve the building of two 660-megawatt power units.

It will take 32 months to complete, and also involve the construction of a new port for coal delivery.

The project has been approved by the appropriate authorities from both countries.

"The plant has both political and economic significance to the countries and will bring good return on investment to the company," said a statement provided to China Daily by Sinohydro Resources.

Yan Zhiyong, the president of the company, said Pakistan had become an important strategic partner for China in the planning of its "One Belt, One Road" initiatives, which are expected to see more cooperation between the countries.

"One Belt, One Road" will see massive infrastructure investment made along the ancient Silk Road Economic Belt and the 21st Century Maritime Silk Road. The program is expected to further open up China's foreign trade.

Yan said Sinohydro Resources will form an international team to handle the financing, construction and management of the project.

By the end of last year, Sinohydro Resources had completed 24 projects in Pakistan worth a total of $1.2 billion, and had another 22 projects ongoing worth $2 billion in the country.

Among those are five hydropower stations with total installation capacity of 2,956 megawatts, four thermal power plants with overall capacity of 3,215 megawatts, as well as four wind power projects, a port and the construction of a highway.

"The planning and design of those projects have helped the company attract engineering procurement construction contracts worth around $10 billion in the country," said Wu Wenhao, general manager of Sinohydro Resources' overseas business department.

dujuan@chinadaily.com.cn

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