Balochistan: China asks contractors to keep away from the province

[Naveed Yaseen]

MUSHTAQ GHUMMAN
ISLAMABAD (December 22 2008): The Chinese government has reportedly restricted its contractors from taking part in any project in Balochistan due to worsening law and order situation in the province. This has been revealed by the Allied Engineering Services (AES) Pakistan Limited, a company that is contracted to establish a 1200 MW integrated coal-fired power project in Gadani in district Lasbela (Balochistan).

"One of the Chinese leading contractors has conveyed to us the Chinese embassy's decision not to allow its citizens to work in Balochistan," the sources quoted AES's Project Director as writing to the PPIB.

The firm appreciated support and co-operation extended by the PPIB, particularly in relation to the tariff mechanism and the Power Purchase Agreement (PPA) specific to the coal-fired projects. Keeping in view the timeline envisaged under the Land Acquisition Act, 1894 and future project development activities, in particular the tariff ruling by National Electric Power Regulatory Authority (Nepra) (by December 2008), the firm intends to commence land acquisition process.

In this regard, the firm has shown readiness to file application for the purchase of land required for the project under the Land Act. Accordingly, the firm has requested the Managing Director PPIB that a senior member, Board of Revenue, Balochistan, may please be directed to facilitate the investors in land acquisition process. Additionally, the company advertised for appointment of the engineering, procurement and construction contractors for the project.

The sources said, AES has requested the federal government to facilitate them by way of a comfort letter to be issued by the GoP stating that the project site of Gadani is not exposed to any security threat.

Meanwhile PPIB has written a letter to Chief Secretary Balochistan, Nasir Mahmood Khosa, stating that it was presently processing two 1000-1200 MW imported coal based power projects to be located in the coastal region near Gadani. Feasibility studies of both projects have been completed. One of the projects was being sponosored by AES, Pakistan, a subsidiary of AES Corporation USA. PPIB has requested the provincial government to extend complete support to the sponsors in their pursuit.

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