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Iran to give $55m for construction of transmission line at Gwadar

Posted on 03 January 2009

ISLAMABAD: A high level delegation of Iran headed by Iranian Minister for Energy Parvaiz Fattah on Monday informed that Iran would provide $55 million for construction of transmission line of 70 kilometres in Pakistan.

The Iranian delegation held a meeting in the Ministry of Water and Power and discussed bilateral co-operation on existing power sector projects related to import of electricity from Iran and future investment prospects in the power sector of Pakistan.

Pakistan was currently importing 40 MW from Iran for coastal areas of Balochisan. The import of power was being enhanced by additional 100 MW for Gwadar port for which an agreement had already been signed. It was informed that M/s SUNIR of Iran would construct the transmission line on both sides of the border for which negotiations on award of contract were in progress. Export Development Bank of Iran would be extending credit of $55 million to NTDC/PEPCO for construction of transmission line.

The balance 50 km on the Iranian side would be constructed by Iran. In addition to the above, consultants have been engaged to carry out the feasibility study for import of additional 1,000 MW from Iran for which an MoU had already been signed. Both sides expressed keen interest to accelerate progress on these projects.

The Iranian delegation was briefed by the Ministry of Water and Power authorities on the current power situation, short, medium and long-term measures being taken by the Pakistan to bridge the gap between demand and supply, future plans to inject more electricity in the national grid to end the energy crisis and the potential projects being offered to the investors in the coal, hydro and renewable energy sectors. The salient features of the power policy and liberal incentives for private investors were also highlighted in the briefing.

The Iranian minister while stressing the need for enhancing bilateral co-operation, offered supply of more power from Iran. He offered to export electricity from its port at Chabahar, which was nearest to Gwadar port where a power plant of 500 MW was being constructed by Iran and would be ready within the next six months.

He said that Iran was already supplying power to Syria, Tajikistan, Iraq etc and was also keen to export the required electricity to Pakistan. Iran had also expressed its interest to build a dedicated 1,000 MW Gas Power Plant at Zahidan near Pakistan border for export of power to Pakistan.

The Minister for Water and Power Raja Pervez Ashraf said that Pakistan would welcome such an initiative and should extend full co-operation and workout the modalities. The minister also stated that Pakistan was interested to purchase more power transformers of various capacities from Iran with speedy delivery.

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