Two nuclear power plants approved by government: project to cost Rs 190 billion

[LahoreEstate]

MUSHTAQ GHUMMAN
ISLAMABAD (April 13 2009): The government has formally approved the much-awaited two more nuclear power plants, of 340 MW each (cumulative capacity 680 MW), at Chashma at a cost of Rs 190 billion ($2.374 billion) with foreign exchange component (FEC) of Rs 140 billion ($1.75 billion), sources told Business Recorder.

The projects have been cleared at a time when Friends of Pakistan (FoP) are meeting in Tokyo to help Pakistan out of current financial crisis. Pakistan is expecting $4-6 billion from its Friends.

Sources said that the proposal, which was not made part of the formal agenda of the Executive Committee of the National Economic Council (Ecnec), was distributed among the members and provincial officials at the end of the meeting, lacking necessary details. "Please do not seek any details and clarification about the project. Approve it in national interest," sources quoted one of the officials as saying loudly in the Ecnec meeting.

Pakistan had renewed its efforts to acquire more nuclear power plants from China In 2007 for meeting future energy needs. Beijing had, in principle, agreed to provide two nuclear power plants to help meet Pakistans growing electricity demand, and it was about to sign an agreement during the visit of Chinese President to Islamabad.

However, when the issue was magnified in the media, China shelved the project, arguing that it would not indulge in any controversy, sources said. Though the issue had been almost dead after 2007, but endeavour was made to streamline the negotiations to acquire the nuclear power plants, and then the Joint Chiefs of Staff Committee (JCSC) Chairman discussed the issue in detail with the Chinese leadership during his visit to Beijing.

Earlier, Pakistan was expecting nuclear power plants of 1000 MW and indigenous fabrication of 300 MW nuclear power plants with Chinese assistance. However, now the plants capacity has been reduced. "Ecnec considered the summary of Planning Division on Chashma Nuclear Power Project Unit-3 and 4 of 340 MW each, and approved the project at a cost of Rs 190 billion, with FEC of Rs 140 billion," official documents say.

The Central Development Working Party (CDWP), headed by former Planning Commission Deputy Chairman Dr Akram Sheikh, had approved setting up of Nuclear Fuel Enrichment Plant (NFEP) at a cost of Rs 13.708 billion, including Rs 8.136 billion FEC, so that necessary material could be made available easily for its on-going nuclear activities.

Earlier, China had promised to continue co-operation with Pakistan for building "some more nuclear power plants with the courage that it would not succumb to any pressure of West or the 45-member Nuclear Suppliers Group (NSG)". The 45-member NSG consists of nuclear supplier countries who seek to contribute to non-proliferation of nuclear weapons through implementation of guidelines they set for nuclear and nuclear related exports.

China has provided two nuclear power plants-Chashma I and II-each capable of generating 300 mw electricity. The CDWP has already approved Rs 150 million to prepare feasibility studies of six sites for erecting new power plants.

The Pakistan Atomic Energy Commission (PAEC) had selected these six sites to set up nuclear power plants (NPPs) to materialise a plan aimed at increasing the countrys capacity to generate 8,800 megawatt nuclear power by 2030.

PAEC had selected these sites at Qadirabad-Balloki (QB) link canal near Qadirabad head works, Dera Ghazi Khan canal near Tuansa barrage, Taunsa-Punjnad (TP) canal near Multan, Nara canal near Sukkur, Pat Feeder canal near Guddu, and Kabul River near Nowshera.

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