Islamabad: The first-ever 878-kilometer High Voltage Direct Current (HVDC) Transmission Line Project has reached its financial closure, a news source quoted Power Division minister Omar Ayub Khan as saying.
The announcement came during a signing ceremony held at the Power Division. Private Power & Infrastructure Board (PPIB) Managing Director Shah Jahan Mirza and Pak Matiari-Lahore Transmission Company (Pvt) Limited CEO Wang Bo signed the documents.
The officials attending the ceremony informed the other attendees that the project was being developed under the framework of the China-Pakistan Economic Corridor (CPEC). The Power Division minister remarked that he expects the initiative to pave the way for future projects related to the establishment of transmission lines.
As per reports, the HVDC Transmission Line Project is also the first private sector transmission line venture. Facilitated by the PPIB, it falls under the Pakistan government’s Policy Framework for Private Sector Transmission Line Projects 2015 (Transmission Line Policy 2015).
The main sponsor of the project is China Electric Power Equipment & Technology (CET), a subsidiary of the State Grid Corporation of China (SGCC). The company is executing the project through a purpose-built organisation called the Pak-Matiari Lahore Transmission Company (Pvt) Ltd.
The said transmission line will have a conduction capacity of 4,000-megawatss at 660-KV voltage. Designed to have bi-pole HVDC technology, it will feature two converter stations; one at Matiari, and the other in Lahore. Additionally, the project includes three repeater stations and two grounding electrode stations.
Reportedly, the project attracted a total investment pool of over USD 1.6 billion. It has reached a financial close after fulfilment of mandatory prerequisites and completion of all financing arrangements.
The transmission line is expected to begin commercial operations by March 2021. Furthermore, the project will be transferred to National Transmission & Despatch Company (NTDC) after an operational term of 25 years.
According to sources, this transmission facility will transfer power generated from indigenous Thar coal-based power generation projects. This measure, in turn, will increase the share of indigenous fuel-based power generation, and preserve a significant volume of foreign exchange.
