Islamabad: The Economic Coordination Committee (ECC) of the cabinet has approved the replacement of sponsor of a 300-megawatt Gwadar power plant, according to a news report. The power plant is going to be established under China-Pakistan Economic Corridor (CPEC). The meeting of ECC was headed by the Finance Minister Asad Umar.
In March 2017, the ECC had approved the award of the power plant to China Communication Construction Company (CCCC). Letter of Intent to CCCC as the sole sponsor of the project was also issued in May 2017.
However, Pakistani authorities were informed by the Chinese officials that CCCC is facing issues getting requisite approvals for investment. It is a public listed company on capital markets in China. This makes the acquisition of approvals time-consuming and complex.
The Chinese authorities had request Pakistan to substitute CCCC with CCCG, its holding company. The same had been approved by the Private Power Infrastructure Board, subject to the approval of the ECC.
