Published On: Tue, Dec 31st, 2013

China commits $6.5bn loan for N-power plants in Karachi

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Energy (Pakistan news) N-Power Plant

Energy (Pakistan news)

China recently gave grant of a loan worth $6.5 billion to finance a nuclear power project (N-Power Plant)with a capacity of 2200 megawatts, in the port city of Karachi. According to two member of the government’s energy team and three sources which have been working closely with this deal confirmed that this loan had been granted by China National Nuclear Cooperation (CNNC).

According to a source CNNC will also waive off a $250,000 insurance premium on the loan, hence enabling good ties between the two nuclear-armed neighbouring countries.

The creation of this nuclear plant would help to diminish the on-going power shortages which has caused disappearance of electricity for almost half a day in some areas, and has created serious roar among the general public. This nuclear power plant could prove to ease tensions among the masses by producing electricity close to the mark of 15000 MW which is the current demand of the nation.

The United States sealed a nuclear supply deal with India in2008, irking both China and Pakistan. This project would enable Pakistan to make a global statement that they would not be affected by international embargos and Indian lobbying curtailing the country’s energy needs.

China’s nuclear cooperation with Pakistan has caused unease in Washington, Delhi and other capitals due to fears about commitment to nuclear non-proliferation rules.

“Bilateral cooperation in the energy sector is to help ameliorate Pakistan’s energy shortages,” Chinese Foreign Ministry spokeswoman Hua Chunying said on Monday. “ This accords with the interests of the Pakistani people.”

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