ISLAMABAD: State Grid of China will help build a 4,000 MW power transmission line in Pakistan in a project valued at $1.5 billion, Pakistan said on Friday, the latest in a series of Chinese investments in its South Asian neighbour.
The high-capacity transmission line will be the first of its kind in Pakistan and will link Matiari town in the south, near a new power station, to Lahore city in the east, a key link in transmission infrastructure, the Pakistani government said.
An agreement on the project was signed on Thursday in Beijing between Mohammad Younus Dagha, Pakistan's secretary of water and power, and Shu Yinbiao, chairman of State Grid Corporation of China, the government said in a statement.
Construction will begin in January, and should take about 20 months, said a spokesman for the Pakistani prime minister's office.
Pakistan has been plagued by a shortage of electricity for years, with widespread rolling blackouts in both rural and urban areas.
The government has managed to reduce load shedding - scheduled power outages - in some areas, but production gaps and distribution woes remain.
The project is the latest in a series of big Chinese investments, most of which fall under a planned $55 billion worth of projects for a China Pakistan Economic Corridor (CPEC).
The corridor is a combination of power and infrastructure projects that link western China to Pakistan's southern port of Gwadar.
Other Chinese investment in Pakistan has included the acquisition of a majority stake by Shanghai Electric of the K-Electric power production and distribution company for $1.8 billion.
Last week, a Chinese-led consortium bought a 40 percent stake of the Pakistan Stock Exchange for an estimated $85 million.
The high-capacity transmission line will be the first of its kind in Pakistan and will link Matiari town in the south, near a new power station, to Lahore city in the east, a key link in transmission infrastructure, the Pakistani government said.
An agreement on the project was signed on Thursday in Beijing between Mohammad Younus Dagha, Pakistan's secretary of water and power, and Shu Yinbiao, chairman of State Grid Corporation of China, the government said in a statement.
Pakistan has been plagued by a shortage of electricity for years, with widespread rolling blackouts in both rural and urban areas.
Advertisement
The project is the latest in a series of big Chinese investments, most of which fall under a planned $55 billion worth of projects for a China Pakistan Economic Corridor (CPEC).
Advertisement
Other Chinese investment in Pakistan has included the acquisition of a majority stake by Shanghai Electric of the K-Electric power production and distribution company for $1.8 billion.
Advertisement
© Thomson Reuters 2016
COMMENTS
Advertisement
India's "Unwarranted References" Reply To China-Pak Joint Statement On J&K Chinese Coal Company To Cut Production In Pak Over Non-Payment Of Dues On Financial Support For Pakistan, China Says It Has Done Its "Utmost" World's Largest Isolated Tribe Makes Rare Appearance In New Footage 1 Passenger Dies As 12 Coaches Of Chandigarh-Dibrugarh Express Derail In UP Why BJP Lost Lok Sabha Polls In Uttar Pradesh - 6 Reasons In Party Report Video: "Narrow Escape," Says Passenger Standing Beside 4 Derailed Coaches Live: 12 Coaches Of Chandigarh-Dibrugarh Express Derail In UP, 1 Killed US Legislation To Curb AI Deepfakes, Give Control Back To Creators Track Latest News Live on NDTV.com and get news updates from India and around the world.