The Matiari-Lahore Transmission Line Project is a 660-kilovolt high-voltage direct-current (HVDC) line that is currently under construction within the framework of the Early Harvest projects of the China-Pakistan Economic Corridor (CPEC). The project is aligned with the coal-fired power projects in the province of Sindh, transferring 4000MW electricity from Thar and Port Qasim to central Pakistan. It is crucial for the evacuation of electricity from this region and the general improvement of Pakistan’s grid structure. It will be the first HVDC transmission line in Pakistan and will consist of 878km. Furthermore, will the project be the first power transmission line in Pakistan financed through the foreign investment as well as through the private sector.
Project Information
Project name
Matiari-Lahore Transmission Line Project
Type
Energy 
Location
Matiari to Lahore, Sindh Province and Punjab Province, Pakistan
BRI Corridor
China-Pakistan Economic Corridor (CPEC)
Project Start
In 2013 a feasibility study was conducted through SNC Lavalin, a Canadian company providing engineering, procurement, and construction (EPC) services, which evaluated options of the expension of the Pakistani Transmission Line System. Based on this feasibility study the National Transmission & Despatch Company (NTDC) decided to build High Voltage DC Transmission Lines in order to transmit huge capacities of power from the Southern part of the country to the Central part. The Matiari-Lahore Transmission Line Project goes back to a Cooperation Agreement signed in 2015 during President Xi Jinping’s visit to Pakistan. In December 2017 State Grid Corporation of China (SGCC) and the Ministry of Water and Power of Pakistan entered into relevant agreements on the project at the 6th Meeting of Joint Cooperation Committee on China-Pakistan Economic Corridor. In May 2018 a Power Transmission Service and Implementation Agreement was signed.
Planned completion
The construction period will be 27 months. Completion is expected to be reached in 2021.
Projected Total Project Costs
2,000 Million USD
Chinese Involvement
Build, Own, Operate and Transfer
Tariff
According to the “Decision of the Authority in the matter of Petition filed under Rule 3 of the NEPRA (Tariff Standards & Procedure) Rules, 1998 for Modification of the Tariff Decision dated May 04, 2017 (Pak Matiari Lahore Transmission Company (Private) Limited (PMTC) in the matter of Matiari Lahore 4,000 MW E 660 KV HVDC Transmission Project Kase # NEPRA/TRF-433/PMTC-20181” from March 2018 the levelized tariff was decided to be at 0.7435 Rs./kW/h.
Operator
China Electric Power Equipment and Technology Co. Ltd. (CET) is a wholly owned subsidiary of State Grid Corporation of China (SGCC). CET is the operation platform and implementer of SGCC in carrying out international Engineering-Procurement-Construction (EPC) business. CET will operate the Matiari-Lahore Transmission Line for 25 years and will transfer it afterwards to the National Transmission and Dispatch Company (NTDC), the Pakistani government-owned power transmission company. CET is under discussion to provide further transmission lines to Pakistan, such as one between Port Qasim and Faisalabad.
Financing
The Debt-Equity Ratio is at 80:20 with a loan tenure of 10 years repayment period and 27 months grace period. The interest rate lies at 5.64 %. The annual debt servicing will be 0.5227 Rs./kW/h over 20 years. The project is being built under Build Own Operate & Transfer. The Project is the first transmission line in Pakistan financed through the private sector.
Employment
It is planned that during the 1-5th year the main employees in converter stations shall be skilled Chinese. After a overhaul in the 15th year, there shall be only a few Chinese engineers (estimated 10-12 persons) for each station to supervise and from the 21st year onwards local employees would work independently in the converter stations.
Additional Project Information
The Matiari-Lahore Transmission Line will transfer mainly electricity generated from coal power projects such as Engro Thar Coal Power Project and Port Qasim Power Project. The transmission line will have a 25-year operational life and afterwards will be transferred to the National Transmission and Dispatch Company (NTDC), the Pakistani government-owned power transmission company, which owns all existing transmission lines in Pakistan. For executing the Matiari-Lahore line, the government has already handed over two chunks of land for building and installing two convertor stations (one in Matiari for converting alternate current (AC) to direct current (DC) and another near Lahore for conversion of DC to AC) to the Chinese company.
Further Information
State Grid
National Electric Power Regulatory Authority (NEPRA) – Determination of the Authority in the matter of Tariff Petition
National Electric Power Regulatory Authority (NEPRA) – Modification of the Tariff Decision