ISLAMABAD  - China Gezhouba Group Company Limited (CGGC) and the Private Power and Infrastructure Board (PPIB) on Tuesday signed a memorandum of understanding to install three projects of 660 MW each (1980MW) based on imported coal at Gadani.

Minister for Water and Power Khawaja Muhammad Asif witnessed the signing of MoU between CGGC and PPIB. Managing Director of PPIB N.A. Zuberi signed the MoU on behalf of the government, while the president of Gezhouba Group Chen Xiao Hua signed on behalf of the company.

Earlier in January, the PPIB had signed an MOU with CGGC in Beijing for the development of a 660 MW power plant at Gadani, however the CGGC has shown interest in developing another three plants at Gadani thus totalling 2,640 MW with an investment outlay of $ 3.5- $ 4 billion. The Minister said that, relations between China and Pakistan are of historical importance.

During the recent visit of the PM Nawaz Sharif to China, the Chinese leadership have committed to making substantial investments in various sectors.

He said that the initiative of Power Park at Gadani has sparked a lot of interest of the international as well as local investors community. He said that presently, CGGC is playing a key role in construction of 969 MW Neelum-Jhelum Hydropower Plant as lead contractor in collaboration with China National Machinery Import and Export Corporation and is also the EPC contractor for the 840 MW Suki Kinari Hydropower Project in the private sector which is expected to achieve financial close by July 2014, however construction of the project is expected to be started within a couple of months.

CGGC has high stakes in large dams in China like the Three Gorges, Shuibuya, Jinping I, and Longtan Dam, and its business reaches out to over 70 countries in Asia, the Middle East, Africa and America. In 2012, CGGC ranked No. 62 among the top 225 international contractors in the world and 42nd largest contractor by revenue in the world, which is approximately $ 7500 million. Secretary Water and Power Saif Ullah Chattha and other senior officials of the government were also present on the occasion.