China, Qatar fund $2bn coal plant in Pakistan, part of Economic Corridor

State-run Power Construction Corp of China Ltd plans to invest in a $2.1bn coal-fired power project in Pakistan, the company said yesterday.

It will get a 51 per cent stake in the project near Karachi (pictured), while Qatar’s Al Mirqab Capital will own the remaining 49 percent, Power Construction stated in a filing with the Shanghai bourse, India’s Economic Times reported.

The Chinese company will be responsible for building and operating the plant, which is scheduled to be completed within 32 months and will mainly use coal from Indonesia.

The plant will have two 660-megawatt high-efficiency power units known as super critical generators, and is part of the broad deal between the two countries dubbed as China-Pak Economic Corridor, Power Construction added.

Under the Corridor deal, the Chinese government and banks will finance Chinese companies to build $45.6bn worth of energy and infrastructure projects in Pakistan over the next six years.

The coal-fired power project will require a total investment of $2.085 billion, nearly $1.6 billion of which will be funded with loans, according to the filing.

At home, meanwhile, China is turning away from coal. To save lives and make the capital more liveable, Beijing plans to close all major coal-fired power plants by next year.

Photograph: Empress Market, Karachi, at sunset (Cyclops1789/Wikimedia Commons)

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