China eyes hydropower for steel mills in K-P

Express Tribune

09-02-2025

PESHAWAR:
A Chinese investment company has approached the Khyber-Pakhtunkhwa (K-P) government to purchase 120 MW of affordable hydropower from the Chakdara Swat Corridor, expressing interest in establishing steel mills in the province.
A delegation from China Century Steel Mills held a special meeting with the Special Assistant to the Chief Minister on Energy, Engr. Tariq Sadozai, at his office.
During the meeting, Tariq Sadozai emphasized the importance of the energy sector in the province, stating that economic stability could be enhanced through private sector investments in natural energy resources.
He also highlighted the establishment of the Khyber-Pakhtunkhwa Transmission and Grid System Company (KPT&GSC), which aims to efficiently utilize the province's electricity transmission system. He expressed hope that KPT&GSC would make history by utilizing the cheap electricity generated by completed projects under the Pakhtunkhwa Energy Development Organization (PEDO), considering it a significant achievement for the province and its people.
Furthermore, Adviser on Power Tila Muhammad provided a briefing, revealing that KPT&GSC plans to launch three major projects to improve the electricity transmission system in the province. As part of this initiative, a 40-km transmission line from Kalam to Madyen will be laid this year at a cost of Rs8 billion, with completion expected within 18 months.
In the second phase, an 80-km transmission line will be constructed from Madyen to Chakdara, with an estimated cost of Rs16 to 18 billion. This phase is scheduled for completion within 48 months.
The third phase will introduce a modern transmission system to distribute the cheap electricity generated by PEDO's current 171 MW completed projects and its ongoing 1,000 MW projects.
The Chinese delegation expressed interest in investing in these proposed projects to enhance the province's electricity transmission system. Special Assistant Tariq Sadozai welcomed this potential investment, considering it a positive step towards the province's development and prosperity.
Background
In light of federal government directives, consultations have commenced regarding the potential transfer of the Peshawar Electric Supply Company (PESCO) under K-P government supervision.
A special meeting, chaired by Special Assistant to the Chief Minister on Energy, Engr. Tariq Sadozai, and Chairman of PESCO's Board of Directors, Himayatullah Khan, was held to discuss this matter. The meeting was attended by Secretary Energy & Power Mohammad Zubair Khan, the Chief Executive Officers of PESCO and PEDO, and other senior officials.
Various options were explored regarding the privatization of PESCO or its transfer to provincial control. The meeting was informed that PESCO is currently a loss-making distribution company, incurring an annual loss of Rs130 billion due to line losses and poor recovery rates.