Rahim Yar Khan Power Plant

The Rahim Yar Khan Power Project is a proposed 1,320MW imported coal power plant project consisting of two 600MW units. The project predates the Belt and Road Initiative but was included in the list of China-Pakistan Economic Corridor (CPEC) projects in 2016. After concerns regarding a surplus of power were raised the project was removed from the CPEC list together with other coal-based power plant projects, such as the Muzaffargarh project.

Project Information

Project name

Rahim Yar Khan Power Plant

Type

Energy

Location

Rahim Yar Khan District, Punjab Province, Pakistan

BRI Corridor

China-Pakistan Economic Corridor (CPEC)

Current Status

The project was canceled in January 2019, after a Pakistani delegation led by Minister for Planning and Development, Makhdoom Khusro Bakhtyar “proposed to remove the Rahim Yar Khan imported fuel power plant from the CPEC list, in order to provide structure optimization space for the subsequent power market of Pakistan” in December 2018. Already earlier concerns regarding the feasibility and necessity of the Rahim Yar Khan Power Plant were raised pointing to an already contracted surplus generation capacity.

Start of Construction

Not applicable

Chinese Involvement

Engineering, Procurement and Construction (EPC)

Projected Total Project Costs

USD 1,600 million

Operator

In July 2017 a memorandum of understanding was signed between the Punjab government and China’s Huaneng Shandong Power Generation Co., Ltd, a subsidiary of China Huaneng Group, for the development of the Rahim Yar Khan project.

Financing

The project was going to be financed through Independent Power Producer (IPP) and was supposed to be repaid over a period of 25 years.

Environment

The Rahim Yar Khan Power Plant was going to be a supercritical coal plant running on imported coal.

Further Information

http://www.cpec.gov.pk/project-details/7

Leave a Reply

Your email address will not be published. Required fields are marked *