Chinese companies to build coal terminal for Pakistan powerplant

China Harbour Engineering (CHEC) and China Power International Development (CPID) have signed a contract for the construction of a coal terminal that will fire a thermal powerplant in Pakistan’s southwestern province of Balochistan.

CPID and Pakistan’s Hub Power Co (Hubco), an independent power producer (IPP) and not a public utility, will provide the investment and the terminal will be constructed by CHEC. The total powerplant investment will be USD2.4 billion, but no figure was given for the cost of the coal terminal.

The coal terminal project, scheduled to be completed by September 2018, will include two 10,000-tonne bulk cargo terminals, a 1,000 m approach channel, and supporting facilities. It will have the capacity to handle 4.4 million tons of imported coal annually, according to CHEC.

The terminal will serve the China-Pakistan coal-fired powerplant being built in Balochistan and operate as both a transport centre and support facility for the powerplant. Analysts believe the deal will create opportunities for private enterprises in both countries, as it is expected to employ at least 30% local subcontractors and suppliers.

Once the USD2.4 billion powerplant goes online, it will form an important part of Pakistan’s energy supply chain and ease the country’s electricity shortages, Lin Boqiang, director of the China Center for Energy Economics Research at Xiamen University, told local media.

The plant and the terminal are considered part of China’s One Belt, One Road initiative, of which the China-Pakistan Economic Corridor is the southern route linking China, through Pakistan, with the Middle East, Africa, and beyond. Pakistan’s significance to China is continuing to grow, Lin said.

Contact Angela Yu at angela.yu@ihs.com