Published On: Wed, Jan 1st, 2014

Iran to supply 1,000MW to Pakistan

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Corporate News (Pakistan news) iran

Corporate News (Pakistan news)

According to sources the Ministry of Water and Power is all set to ink an agreement with Iran for the import of 1000 megawatts of electricity to overcome the extensive energy crises in the country.

Under this agreement Iran is all set to construct a powerhouse in its province of Zahedan that is on the border of Pakistan to generate electricity for export purposes. Iran has also expressed its willingness to provide a loan of $800-$900 million for the project. The project will provide electricity to Pakistan at a rate of paying 8-11 cents per unit.

The agreement will also enable the construction of a 700-kilometre transmission line of 500 kilovolts between the borders of the 2 countries via Quetta.

Iran has previously showed keen interest in resolving the energy crises faced by its neighboring country. During the tenure of the previous government, Iran offered to set up a 250MW power station in the province of Balochistan and also proposed a few other power projects. Iran also offered Pakistan to export 10,000 MW but all these wishes could not be transformed into practicality as Iran was sidelined due to  sanctions by the west.

Some sources state that the only issue that is hampering the implementation of such projects is the delay in clearance of Iran’s dues. Countries like Turkmenistan and Turkey were also facing payment issues with Iran in gas trade. the Iran-Pakistan pipeline and in power import project.

At present, Iran is exporting 74MW of electricity per day to the border areas of Balochistan as well as Gwadar, but Pakistan has not been able to carry out banking transactions with Tehran since June 2011 after the US and European Union intensified sanctions. Earlier, the Iranian firm exporting electricity to Pakistan had threatened to cut supplies because of delay in settling the dues.

 

 

 

 

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