PM Imran Khan  visit to China leave for four-day  trip today

High level delegation accompanying premier on his visit to China.

CPEC-IPPs contracts: Pakistan seeks renegotiation with China

Prime Minister Imran Khan has been informed that if the pacts with the CPEC IPPs are similarly re-negotiated, an initial working suggests that Pakistan can save $ 14.29 billion over the life of these projects which comes to an average of $0.48billion per year for average project life of 30 years.

According to sources, when initial inquiries were made with the Chinese officials to explore the possibility of seeking a similar support from CPEC-IPPs, it was indicated that doing so would not be in line with the spirit of CPEC as it would seriously affect the sanctity of contracts signed under CPEC framework agreement.

The sources maintained that it was further said that the Chinese government would not view favourably the underlying fact that such a demand may be coming at the behest of the IFIs and other western lenders.

An alternate option to offset the cost i.e. $ 0.47 billion per year can be to sell power to China for further provision of electricity to Afghanistan, the sources said, adding that Pakistan can offer China to consider provision of electricity to Afghanistan through Pakistan for 30 years as part of their development assistance to Afghanistan. China through a contract may buy power from Pakistan and provide it to Afghanistan either at cost or at reduced rates as per its political terms.

Pakistan can allocate power from its power pool to China, the sources said, adding that China can also offer to lay transmission line connecting Pakistan grid to the nearest point in Afghanistan and invest in their grid.