Chinese firm offers alternative power solutions for Gwadar, seeks Ministry's facilitation

M/s CIHC Pak Power Company (Pvt.) Limited, the Chinese company behind the 300MW Gwadar coal-fired power plant, has expressed willingness to evaluate alternative, sustainable power solutions for the region. The company’s Chairman, Zhao Bo, wrote to Minister for Planning, Development, and Special Initiatives Ahsan Iqbal, highlighting the importance of this project under the China-Pakistan Economic Corridor (CPEC) framework and seeking further support from the Ministry, Business Recorder reported. 

The company acknowledged the complexities of inter-agency coordination and raised concerns over a procedural matter that may benefit from the Ministry’s facilitation. Specifically, it requested an extension of the Financial Closing Date outlined in the existing Letter of Support (LoS) for the project. 

This request follows a series of official communications from the Private Power and Infrastructure Board (PPIB) advising the company to extend the validity of its Performance Guarantee and submit the Financial Closing Date extension fee.

In line with PPIB’s guidance, the company submitted the required documents, including an extended Performance Guarantee valid until 2028. The company also processed a payment of $150,000 in compliance with PPIB instructions.

However, despite fulfilling all requirements, the company noted that the formal extension letter amending the Financial Closing Date has not yet been issued by PPIB. In response, the company has requested the Planning Ministry’s intervention to facilitate coordination with PPIB for the issuance of the updated extension letter.

The company also referred to discussions held during Prime Minister’s visit to China in September 2025, where alternative power solutions, including a photovoltaic scheme, were suggested in case the coal-fired project faced commercial viability challenges. A formal analysis of these alternative solutions was submitted to PPIB in December 2025.

CIHC Pak Power reaffirmed its commitment to addressing Gwadar’s energy needs and pledged to assist the Ministry and other relevant authorities in exploring sustainable and integrated power solutions for the region.