Another 1320MW imported coal-fired power project has been added in China Pakistan Economic Corridor (CPEC). The project will be established in Rahimyar Khan as an Independent Power Producer (IPP) at a cost of $ 1.6 billion.
The executing agency/ sponsors of super critical technology project are shanghai Electric Power Generation, China Machinery Engineering Corporation and Nishat Power Company.
On April 28, 2017, the Cabinet Committee on Energy (CCoE) headed by Prime Minister Nawaz Shrif had directed the Ministry of Water and Power to immediately initiate process for inclusion of Rahim Yar Khan coal-fired power plant in CPEC priority list with imported fuel i.e RLNG, according to agreed procedure for the CPEC projects and in addition to the agreed list of 15 prioritized projects.
Sources informed that former Secretary for Water and Power, Younas Dagha opposed Rahimyar project in CPEC on the Plea That the country would have surplus power after 2018,hence there is no need to include this project in the priority list. The rumors in the field claiming that the Ministry of Water and power replaced Mr. Dagha was with Yousaf Naeem Khokhar due to his opposition to this project and his successor has since included the project in CPEC.
Power sector experts also argued that power consumers will pay Rs 500 billion in 30 years as capacity payments for a plant which will come into operation in 2021 when there will already be a surplus of least 5000 MW.