Chinese Investor Seeks Ministry Intervention to Resolve Gwadar's Power Crisis. -

In a significant move to resolve Gwadar’s chronic power supply challenges, CIHC Pak Power Company (Pvt.) Limited has formally approached the Ministry of Planning for intervention to clear administrative hurdles for the 300MW Gwadar coal-fired power project. Despite the company’s full compliance with government requirements, critical approvals remain pending, threatening the timeline of this high-priority CPEC initiative.

Key Points of the Proposal and Challenges

Approval Delays: Chairman Zhao Bo noted that despite paying a $150,000 extension fee and submitting a Performance Guarantee valid until March 2028, the Private Power and Infrastructure Board (PPIB) has yet to issue the formal extension letter for the Financial Closing Date.
Transition to Renewables: Following high-level discussions during the Prime Minister’s visit to China in September 2025, the company has expressed readiness to evaluate a photovoltaic (solar) scheme as a sustainable alternative should the coal project face commercial viability issues.
Alternative Analysis: A formal analysis of sustainable and integrated power solutions was submitted to the PPIB on December 5, 2025, aimed at addressing Gwadar’s long-term energy security.
Economic Impact: The developer emphasized that stable power is the “backbone” of Gwadar’s growth, essential for unlocking the potential of the Gwadar Free Zone and other trade-related infrastructure.
Bilateral Cooperation: The company reaffirmed its commitment to the China-Pakistan Economic Corridor (CPEC) framework and its readiness to assist Pakistani authorities in specialized studies for the region’s energy strategy.
Current Status: Under the current Indicative Generation Capacity Expansion Plan (IGCEP), the project is listed with a tentative commercial operation date of December 2029