CPEC Pakistan: Matiari Transmission Line Project delayed

Aftab Ahmed

Islamabad: Pakistan and China Wednesday signed an amendment in the agreement relating to CPEC Matiari – Lahore Transmission Line Project for extension in its commercial operations.

Two sides signed Addendum /Amendment in Agreement for ±660 kV HVDC Matiari – Lahore Transmission Line Project Signed

Federal Minister for Energy (Power Division) Mr. Hammad Azhar witnessed as Chief guest of the agreement-signing ceremony of Addendum /Amendment in agreement for ±660 kV HVDC Matiari – Lahore Transmission Line Project between NTDC and Pak MLTC and Amendment No. 1 to the Implementation Agreement (IA) between Private Power & Infrastructure Board (PPIB) and the Project Company i.e. Pak Matiari-Lahore Transmission Company (Pvt.) Ltd. (PMLTC) held at the conference room of Power Division on Wednesday.

Shah Jahan Mirza, Managing Director, PPIB for Amendment to the IA, Managing Director NTDC Engr. Dr. Khawaja Riffat Hassan for Addendum and Ms. Zhang Lei, President, and CEO of PMLTC signed the agreements. SAPM on Power and Petroleum, Mr.Tabish Gauhar, and Secretary Power Division Mr. Ali Raza Bhutta was also present on the occasion.

The Economic Coordination Committee (ECC) has also approved and under the new Transmission Services Agreement (TSA), the Required Commercial Operation Date (COD) of the transmission line has been extended from 1st March 2021 to 1st September 2021. Whereas, Another Addendum has also been made in the Operations and Maintenance Service Agreement (O&M).

The ±660 kV Matiari – Lahore Transmission Line Project (the Project) is the first-ever HVDC Transmission Line Project in Pakistan, two countries were executed under the framework of the China-Pakistan Economic Corridor (CPEC) Agreement.

This Transmission Line spreads throughout 886 km and capable of transmitting 4000 MW power at ±660 kV. The Chinese firm is executing the project on Build-Own-Operate-Transfer (BOOT) basis and will transfer it to NTDC after a term of 25 Years. The Project entails a foreign investment to the tune of US$ 1,658.34 Million.

In the light of the aforesaid MoU, Addendum Agreements to the TSA and O&M Agreement were agreed between PMLTC and NTDC which were later approved by their respective BoDs.

Both companies signed these amendments. As per mutually agreed terms of the agreement, government has extended the Commercial Operations Date (COD) of the Project from 1st March to 1st September 2021. Nevertheless, during this period, NTDC could transmit available power, for which the Project Company would receive tariff Nepra had approved.

He further said it is one of the mega projects that will eventually evacuate electricity from the South of the Country to the North improving the economic merit dispatch order of the electricity. It will not only benefit the electricity consumers also bring stability to the system, but he also added

It is pertinent to mention here that in December 2020, during the testing of said project, frequency oscillations in the NTDC system lead to the differences between NTDC and Pak MLTC. However, the concentration of Ministry of Energy (Power Division), PPIB, BoD NTDC, Foreign Office, Chairman CET China, and CPEC Authority played a vital role during the proceedings of negotiations between NTDC and Chinese companies.

Resultantly, the government has resolved all Technical and Contractual issues amicably under the dispute resolution mechanism. Afterward, The directors of both companies approved MoU signed by NTDC and Pak MLTC.