Staff Report
ISLAMABAD: The Economic Coordination Committee (ECC) of the Federal Cabinet, scheduled to meet on Thursday, is expected to approve a technical supplementary grant of 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 requested the grant to support this crucial infrastructure initiative aimed at enhancing the power supply to the port city of Gwadar. The revised PC-1 for the project, which was approved by the Central Development Working Party (CDWP) on March 15, 2024, outlines a total cost of Rs 4.540 billion. This approval included 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.
Sources disclosed that, upon analyzing potential savings within its portfolio, the Power Division identified four projects from which funds could be reallocated:
Secondary Transmission Lines & Grid Stations (HESCO)
Approved Cost: Rs 7.009 billion
Savings: Rs 500 million
Secondary Transmission Lines & Grid Stations (SEPCO)
Approved Cost: Rs 9.334 billion
Savings: Rs 500 million
Installation of 2 x 660 MW Coal Fired Power Project Jamshoro
Approved Cost: Rs 17.7 billion
Savings: Rs 617 million
Land Acquisition for Installation of 1200 MW Solar Power Plant at District Layyah
Approved Cost: Rs 2.658 billion
Savings: Rs 600 million
These projects collectively provide the necessary Rs 2.217 billion in savings. Since these initiatives are financed through the Cash Development Loan (CDL) from the Finance Division, the Power Division sought approval for the reallocation of funds. The Finance Division has advised that ECC’s approval is required to surrender the funds from Demand No. 128-Development Loans & Advances by the Federal Government, in favor 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 emphasized the urgency of this approval, highlighting the project’s significance in bolstering the power infrastructure in Gwadar, a region of strategic importance for Pakistan. The “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.
