ISLAMABAD: Federal Cabinet’s Economic Coordination Committee (ECC), scheduled to meet on Thursday, is likely to grant its approval for a technical supplementary grant amounting to Rs 2.217 billion for the “Construction of 2nd Circuit Stringing from Jiwani to Gwadar” project.
According to sources, the Ministry of Energy (Power Division) has prepared a request for a technical supplementary grant amounting to Rs 2.217 billion for the critical infrastructure initiative aimed at enhancing the power supply to the port city of Gwadar.
Sources disclosed that the revised PC-1 for the project, which was approved by the Central Development Working Party (CDWP) on March 15, 2024, entails a total cost of Rs 4.540 billion. The approval came with a directive for the Power Division to review its Public Sector Development Program (PSDP) 2023-24 portfolio and reallocate funds to cover the increased cost of Rs. 2.217 billion.
As per the sources, upon analysing potential savings within its portfolio, the Power Division identified four projects from which funds could be reallocated:
1. Secondary Transmission Lines & Grid Stations (HESCO).
Approved Cost: Rs. 7.009 billion
Savings: Rs. 500 million
2. Secondary Transmission Lines & Grid Stations (SEPCO)
Approved Cost: Rs. 9.334 billion
Savings: Rs. 500.00 million
3. Installation of 2 x 660 MW Coal Fired Power Project Jamshoro
Approved Cost: Rs. 17.7 billion
Savings: Rs. 617.00 million
4. Land Acquisition for Installation of 1200 MW Solar Power Plant at District Layyah
Approved Cost: Rs. 2.658 billion
Savings: Rs. 600.00 million
Sources also said that these projects collectively provide the necessary Rs 2.217 million in savings. Since these initiatives are financed through the Cash Development Loan (CDL) from the Finance Division, the Power Division has sought approval from the Finance Division for the reallocation of funds. And, the Finance Division has advised that ECC’s approval was required to surrender the funds from Demand No. 128-Development Loans & Advances by the Federal Government, in favour of the Ministry of Energy (Power Division), to secure a Technical Supplementary Grant (TSG) of an equal amount for the Jiwani to Gwadar project.
The Power Division emphasised the urgency of this approval, highlighting the significance of the project in bolstering the power infrastructure in Gwadar, a region of strategic importance for Pakistan, said the sources
It is pertinent to mention that “2nd Circuit Stringing from Jiwani to Gwadar project” is expected to significantly enhance the reliability and capacity of the power supply to Gwadar, supporting the city’s development and economic activities. The timely completion of this project is deemed crucial for meeting the growing energy demands of the region.
