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Thread: China commits $6.5 billion for nuclear project in Pakistan

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  1. #1
    Senior Member Amjad Hussain's Avatar
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    China commits $6.5 billion for nuclear project in Pakistan

    ISLAMABAD: China has committed $6.5 billion to finance the construction of a major nuclear power project in Karachi as it seeks to strengthen ties with its strategic partner, officials said.
    Prime Minister Nawaz Sharif broke ground on the $9.59 billion project last month but officials have provided few details of how they plan to finance it.

    Financing documents seen by Reuters showed China National Nuclear Cooperation (CNNC) has promised to grant a loan of at least $6.5 billion to finance the project which will have two reactors with a capacity of 1,100 megawatts each.

    Two members of the government’s energy team and three sources close to the deal confirmed this. CNNC was not available for comment.
    “China has complete confidence in Pakistan’s capacity to run a nuclear power plant with all checks in place,” said Ansar Parvez, chairman of the Pakistan Atomic Energy Commission which runs the civilian nuclear programme.

    Parvez declined to give more details of the funding but said it would be completed by 2019 and each of the two reactors would be larger than the combined power of all nuclear reactors now operating in Pakistan.

    As part of the deal, China has also waived a $250,000 insurance premium on the loan, said two sources in the Energy Ministry with knowledge of the project. They declined to be identified as they are not authorised to speak to the media about the financing.

    Pakistan and China, both nuclear-armed nations, consider each other close friends and their ties have been underpinned by common wariness of India and a desire to hedge against US influence in South Asia.

    Pakistan sees nuclear energy as key to its efforts to solve power shortages that have crippled its economy. The country generates about 11,000 MW of power while total demand is about 15,000 MW.
    Blackouts lasting more than half a day in some areas have infuriated many citizens and sparked violent protests, undermining an economy already beset by high unemployment, widespread poverty, crime and sectarian and insurgent violence.

    Under its long-term energy plan, Pakistan hopes to produce more than 40,000 MW of electricity through nuclear plants by 2050.
    The United States sealed a nuclear supply deal with India in 2008, irking both China and Pakistan.
    Pakistan wants a similar agreement with the United States but it is reluctant, largely because nuclear scientist Abdul Qadeer Khan admitted in 2004 to transferring nuclear secrets to North Korea, Iran and Iraq.

    “There should be no double standards in terms of civilian nuclear deals,” Parvez said. “Pakistan has energy needs and the building of two new reactors should convince everyone that India’s embargos and restrictions won’t stop us.”

    Proliferation fears

    Pakistan carried out its first nuclear tests in 1998, soon after India conducted tests. Both refuse to join the Nuclear Non-proliferation Treaty, which would oblige them to scrap atomic weapons.
    China has already helped supply two nuclear reactors at the Chashma nuclear power complex in Punjab, while another two are also under construction with Chinese assistance.

    China’s nuclear cooperation with Pakistan has caused unease in Washington, Delhi and other capitals due to fears about commitment to nuclear non-proliferation rules.
    China says its nuclear ties with Pakistan are entirely peaceful and come under International Atomic Energy Agency safeguards. It has not given details of the project’s financing but state media has put its total value at $9.59 billion.

    “Bilateral cooperation in the energy sector is to help ameliorate Pakistan’s energy shortages,” Chinese Foreign Ministry spokeswoman Hua Chunying said on Monday. “This accords with the interests of the Pakistani people.”

    Three prominent physicists recently raised questions about the safety, design and cost of the new reactors in Karachi, sparking a national debate.
    “There is no official information about preparedness for a nuclear accident in Karachi that is available publicly,” said Zia Mian, a Pakistani-American physicist who directs the Project on Peace and Security in South Asia at Princeton University.

    “The only real obstacle that may exist to the new reactors being built is if the citizens of Karachi decide they do not want to live with the risks these reactors create.”
    But Pakistan’s new energy minister has dismissed the critics.

    “Every 1,000 megawatts of electricity produced through nuclear energy saves you $1 billion in oil imports,” Khawaja Asif, the minister for water and power, told Reuters.
    “If critics can give me alternatives and other platforms to raise money for low-cost, clean power, I’m willing to listen.”

    http://tribune.com.pk/story/649908/c...t-in-pakistan/
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  2. #2
    Facebook Editor safriz's Avatar
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    Pakistan Pakistan

    China commits $6.5 billion for nuclear project in Pakistan





    ISLAMABAD: China has committed $6.5 billion to finance the construction of a major nuclear power project in Karachi as it seeks to strengthen ties with its strategic partner, officials said.
    Prime Minister Nawaz Sharif broke ground on the $9.59 billion project last month but officials have provided few details of how they plan to finance it.
    Financing documents seen by Reuters showed China National Nuclear Cooperation (CNNC) has promised to grant a loan of at least $6.5 billion to finance the project which will have two reactors with a capacity of 1,100 megawatts each.
    Two members of the government’s energy team and three sources close to the deal confirmed this. CNNC was not available for comment.
    “China has complete confidence in Pakistan’s capacity to run a nuclear power plant with all checks in place,” said Ansar Parvez, chairman of the Pakistan Atomic Energy Commission which runs the civilian nuclear programme.
    Parvez declined to give more details of the funding but said it would be completed by 2019 and each of the two reactors would be larger than the combined power of all nuclear reactors now operating in Pakistan.
    As part of the deal, China has also waived a $250,000 insurance premium on the loan, said two sources in the Energy Ministry with knowledge of the project. They declined to be identified as they are not authorised to speak to the media about the financing.
    Pakistan and China, both nuclear-armed nations, consider each other close friends and their ties have been underpinned by common wariness of India and a desire to hedge against US influence in South Asia.
    Pakistan sees nuclear energy as key to its efforts to solve power shortages that have crippled its economy. The country generates about 11,000 MW of power while total demand is about 15,000 MW.
    Blackouts lasting more than half a day in some areas have infuriated many citizens and sparked violent protests, undermining an economy already beset by high unemployment, widespread poverty, crime and sectarian and insurgent violence.
    Under its long-term energy plan, Pakistan hopes to produce more than 40,000 MW of electricity through nuclear plants by 2050.
    The United States sealed a nuclear supply deal with India in 2008, irking both China and Pakistan.
    Pakistan wants a similar agreement with the United States but it is reluctant, largely because nuclear scientist Abdul Qadeer Khan admitted in 2004 to transferring nuclear secrets to North Korea, Iran and Iraq.
    “There should be no double standards in terms of civilian nuclear deals,” Parvez said. “Pakistan has energy needs and the building of two new reactors should convince everyone that India’s embargos and restrictions won’t stop us.”
    Proliferation fears
    Pakistan carried out its first nuclear tests in 1998, soon after India conducted tests. Both refuse to join the Nuclear Non-proliferation Treaty, which would oblige them to scrap atomic weapons.
    China has already helped supply two nuclear reactors at the Chashma nuclear power complex in Punjab, while another two are also under construction with Chinese assistance.
    China’s nuclear cooperation with Pakistan has caused unease in Washington, Delhi and other capitals due to fears about commitment to nuclear non-proliferation rules.
    China says its nuclear ties with Pakistan are entirely peaceful and come under International Atomic Energy Agency safeguards. It has not given details of the project’s financing but state media has put its total value at $9.59 billion.
    “Bilateral cooperation in the energy sector is to help ameliorate Pakistan’s energy shortages,” Chinese Foreign Ministry spokeswoman Hua Chunying said on Monday. “This accords with the interests of the Pakistani people.”
    Three prominent physicists recently raised questions about the safety, design and cost of the new reactors in Karachi, sparking a national debate.
    “There is no official information about preparedness for a nuclear accident in Karachi that is available publicly,” said Zia Mian, a Pakistani-American physicist who directs the Project on Peace and Security in South Asia at Princeton University.
    “The only real obstacle that may exist to the new reactors being built is if the citizens of Karachi decide they do not want to live with the risks these reactors create.”
    But Pakistan’s new energy minister has dismissed the critics.
    “Every 1,000 megawatts of electricity produced through nuclear energy saves you $1 billion in oil imports,” Khawaja Asif, the minister for water and power, told Reuters.
    “If critics can give me alternatives and other platforms to raise money for low-cost, clean power, I’m willing to listen.”
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  3. #3
    Senior Moderator Superkaif's Avatar
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    Re: China commits $6.5 billion for nuclear project in Pakistan

    Threads merged.............will be interesting to see the breakdown of the loan and how it takes place.

  4. #4
    Senior Member Amjad Hussain's Avatar
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    Re: China commits $6.5 billion for nuclear project in Pakistan

    Quote Originally Posted by Superkaif View Post
    Threads merged.............will be interesting to see the breakdown of the loan and how it takes place.
    Large projects like this must be managed carefully so no corruption occurs. Sad to say this but I hope China manages it rather than Pakistani management

  5. #5
    Senior Member Wattan's Avatar
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    Pakistan Pakistan

    China to give $6.5bn concessional loan for N-plants

    ISLAMABAD: Pakistan has signed a $6.5 billion ‘concessionary loan’ agreement with China for projects under civil nuclear cooperation, including development of two power plants near Karachi of 2,200MW, Prime Minister Nawaz Sharif said here on Wednesday.

    “This is a very big loan that China has extended. It is very cheap and will ensure uninterrupted power supply,” he said at a briefing on the economic situation for members of his cabinet and the media.

    Finance Minister Ishaq Dar made a detailed presentation.

    But the prime minister made it clear that nuclear power projects usually take a long time to complete, like hydropower projects such as Dasu, Diamer-Bhasha and Bunji.

    Finance Secretary Dr Waqar Masood Khan said a major part of the loan was concessionary for 15-20 years and some commercial, for 10 years.

    Mr Dar chipped in that the loan agreement signed with the Exim Bank of China was at an average interest rate of 3-4 per cent and there was a moratorium on repayments for the first three years.

    Replying to a question, the prime minister conceded that not only with Iran but Pakistan’s trade with many regional and friendly countries, including Afghanistan, China and Turkey, was not up to the mark and required to be increased.

    The finance minister said the government was making efforts to resolve the issue of non-payment of electricity dues with the provinces.

    He said a proposal was under consideration to transfer the power companies at book value to the provinces and revive the office of federal adjustor for clearance of bulk energy dues.

    INFLATION: While conceding inflationary pressure, the finance minister presented copies of two summaries the caretaker government had approved for increasing electricity tariff and raising Rs190bn in taxes under a commitment with the IMF that had been shelved by former president Asif Ali Zardari.

    These decisions were required to be taken by the PPP and caretaker government to pass on the natural impact of energy tariff to the people but these were kept frozen for more than 15 months and “now they are doing politics on inflation”, he said.

    Mr Dar said the government had taken a bold decision to clear the backlog, resulting in inflation, but conceded that it had not been successful in improving energy sector recoveries.

    http://www.dawn.com/news/1077819/chi...n-for-n-plants

  6. #6
    Member cb4's Avatar
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    Chashma units to be completed by 2016

    ISLAMABAD: The under construction units, (C-3) and (C-4) of Chashma Nuclear Power Project, will be completed by the end of 2016 which would produce 680MW electricity.


    According to sources, the Pakistan Atomic Energy Commission (PAEC) is producing electricity through three nuclear plants, including Karachi Nuclear Power Plant (KANUPP), Chashma Unit 1 (C-1) and Chashma Unit 2 (C-2), while construction of two more Units (C-3) and (C-4) of 340MW each is in progress which would be completed by the end of 2016.

    After making the units (C-3) and (C-3) of Chashma Nuclear Power Project operational, the generation of electricity based on nuclear power reactors would reach to 1400MW in the country, the sources added. The sources said that planning on various projects of electricity generation is under consideration for making the country self-sufficient in energy sector while taking nuclear power as a viable option for electricity generation. The country needs alternative energy sources like nuclear power to overcome the shortfall of electricity.

    http://www.dailytimes.com.pk/busines...pleted-by-2016

  7. #7
    Senior Member Express's Avatar
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    Re: China commits $6.5 billion for nuclear project in Pakistan

    By 2016 we should have an abundance of power --- but probably no money!!

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