Pakistan looks to Russia for an ambitious workload and enhanced cooperation

Sources reveal that Pakistan has sought Russian investment in six exciting power sector projects worth $12.66 billion, prior to the scheduled visit of Russian President Vladimir Putin on October 2, 2012.

Two of these projects are major hydro developments related to Pakistan’s Water and Power Development Authority (Wapda) at Thakot & Pattan, both forecasted to stand at 2,800 MW with an estimated cost of $5 billion, and $6 billion respectively.

Three units (1, 2 & 3) of Thermal Power Station (TPS) with a cumulative capacity of 630MW which are being converted to coal at an estimated cost of $300 million have also been offered to Russia. According to sources, Russia have also been requested to invest in a 500MW coal fired power project at Jamshoro, with an estimated cost of $700 million.

Other power sector projects of National Transmission and Dispatch Company (NTDC) which have been offered to Russia for investment are as follows: (i) power dispersal from 747MW CCPP Guddu at an estimated cost of $91 million; (ii) power dispersal from 969MW NJHP with an estimated cost of $251 million; (iii) power dispersal from 650MW C3 & C4 (Chasma nuclear) with an estimated cost of $35 million; (iv) power dispersal from 1,200MW Thar coal power project at a cost of $245 million; and (v) 220 KV DI Khan grid station along with allied transmission line project with an estimated cost $44 million.

According to sources, the mining and power generation project at any one of the Thar coal blocks to be approved by Sindh Thar Coal and Energy Board (TC&EB) will be offered to Russia later on. Pakistan and Russia are expected to sign agreements on currency swap and opening of bank branches in the two countries during the visit of President Vladimir Putin.

The list of agreements to be inked during the visit of the Russian President are as follows: (i) Muzaffargarh and Guddu thermal power plants; (ii) Thar Coal project; (iii) Kandra gas thermal power plant; (iv) Tarbela-IV extension project; (v) currency swap arrangements; (vi) opening of bank branches; (vii) assistance to the Heavy Mechanical Complex(HMC); (viii) assistance to the State Engineering Corporation (SEC); (ix) joint ventures in auto sector (manufacturing of spare parts); (x) partnership in water sector; (xi) co-operation in agriculture sector, and (xii) assistance to the National Centre for Rural Development (NCRD). Sources said that the Presidency had directed all ministries/divisions concerned to finalise agreements in consultation with the Ministry of Foreign Affairs.