CET power line set to en­er­gize Pak­istan

China Daily (Hong Kong) - - BUSINESS - By ZHENG XIN and JING SHUIYU

China Elec­tric Power Equip­ment and Tech­nol­ogy Co Ltd or CET, a sub­sidiary of State Grid Corp of China, said it will par­tic­i­pate in the largest di­rect-cur­rent high-volt­age trans­mis­sion project along the China Pak­istan Eco­nomic Cor­ri­dor.

The 910-km, 660-kilo­volt Ma­tiari-La­hore DC trans­mis­sion line, a project to be built on engi­neer­ing, pro­cure­ment and con­struc­tion or EPC ba­sis, also in­cludes two con­verter sta­tions. EPC con­tracts are com­mon in the con­struc­tion in­dus­try.

The trans­mis­sion line is be­ing con­structed as part of the China-Pak­istan Eco­nomic Cor­ri­dor or CPEC. It starts from a con­verter sta­tion at Ma­tiari near Hy­der­abad city in Sindh prov­ince and ends at Nankana Sa­hab near La­hore city in Pun­jab prov­ince.

The con­tract is worth over $1.76 bil­lion and will take 27 months to con­struct, ac­cord­ing to CET. Con­struc­tion would be­gin soon, CET said.

“The project, once com­pleted, will help trans­mit 4,000 MW of elec­tric­ity and fuel ex­ports worth about 10 bil­lion yuan ($1.44 bil­lion) an­nu­ally,” said Zheng Bai­hua, deputy man­ager in gen­eral of CET.

Zheng said the project would mainly use Chi­nese prod­ucts, stan­dards, de­sign and con­struc­tion.

“The project is of great im­por­tance to sus­tain Pak­istan’s GDP growth. As per mar­ket con­sen­sus, it is ex­pected to rise at a rate of 5 per­cent in 2017 and 5.5 per­cent in 2018, from a fore­cast rate of 4.7 per­cent for 2016,” said Joseph Ja­co­belli, se­nior an­a­lyst of Asian util­i­ties and in­fra­struc­ture re­search at Bloomberg In­tel­li­gence.

“The con­struc­tion ... should be­come an­other proof of SGCC’s tech­ni­cal prow­ess. Just like in China, the project may be im­por­tant to bet­ter dis­trib­ute power from one lo­ca­tion, which has high elec­tric­ity gen­er­a­tion re­sources, to far­away load cen­ters,” Ja­co­belli said.

The CPEC is a ma­jor pi­lot project un­der China’s Belt and Road Ini­tia­tive, high­light­ing en­ergy, trans­port and in­dus­trial co­op­er­a­tion be­tween the two coun­tries.

Sun Wei­dong, the Chi­nese am­bas­sador to Pak­istan, said in a pre­vi­ous in­ter­view: “The cor­ri­dor will come up with more busi­ness op­por­tu­ni­ties while pro­vid­ing tens of thou­sands of new jobs for lo­cals.”

Ac­cord­ing to the com­pany, the project would im­prove power net­work struc­ture in Pak­istan, make full use of elec­tric­ity, and pro­mote bi­lat­eral re­la­tions and co­op­er­a­tion.

Be­tween 2013 and 2016, CET has won more than 20 over­seas or­ders from Africa, Europe and the US, which were worth $11 bil­lion. The con­tract value posted dou­bledigit an­nual growth rate in the same pe­riod, with 2015 alone ac­count­ing for more than $3.3 bil­lion.

“All our over­seas in­vest­ments are mak­ing a profit so far, as we con­ducted sci­en­tific and strict re­views be­fore de­ci­sion-mak­ing,” said Lv Shi­rong, deputy di­rec­tor of State Grid’s in­ter­na­tional depart­ment.

The par­ent com­pany said its to­tal over­seas in­vest­ment ex­ceeded $10 bil­lion by Juneend, and its over­seas as­sets reached $40 bil­lion.

worth of the con­tract for the 910km, 660-kilo­volt Ma­tiari-La­hore DC power trans­mis­sion line

Con­tact the writer at zhengxin@chi­nadaily.com.cn

XIN­HUA

Shu Yin­biao, chair­man of the State Grid (mid­dle, front row), cel­e­brated with his peers af­ter the com­pany won the bid for the Ma­tiari-La­hore DC power trans­mis­sion line.

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