Powering Progress: GPA's plan for 20 MW in Gwadar Port and Free Zones

In the Federal Budget for 2023-24, presented by Finance Minister Ishaq Dar on June 9, approximately Rs 727.738 million has been allocated under the Public Sector Development Program (PSDP) to fund this initiative. The Quetta Electric Supply Company (QUESCO) has already approved the necessary administrative and structural procedures to ensure a seamless power supply to these three vital entities.

A spokesperson from the China Overseas Port Holding Company (COPHC) revealed that they have engaged a consultant to design the transmission line infrastructure. Once the layout is finalized, the electricity network within the Gwadar Port premises will be seamlessly integrated with the Main Gwadar Grid Station.

Furthermore, GPA, in partnership with Quesco, has initiated two transmission line projects. The first entails a 12-kilometer transmission through the Energy Corridor (service road) along Eastbay Expressway, extending beyond the Gwadar Port's boundary. The second package involves a 350-meter transmission line connecting the Gwadar Grid Station to Gwadar Free Zone North.

An exciting development is that the electricity tariff for industrial use is expected to range from Rs 35 to Rs 45, ensuring uninterrupted power during normal and peak hours, 24/7.

This strategic move is set to liberate Gwadar Port and the Free Zones from the high costs associated with the existing 8.5 MW diesel-powered generator, which has been a financial burden from 2015 to 2023.

A GPA official emphasized that the 20 MW power supply will stimulate robust economic activities and accelerate industrialization in Gwadar, Gwadar Port, and the Free Zones, where the high cost of diesel-generated electricity had posed a persistent challenge.

Previously, to address this issue, Gwadar Port operators had proposed a collaboration with Chinese power producers to establish a 50 MW Independent Power Producer (IPP) plant.

Chinese companies operating in Gwadar Free Zone had long grappled with the exorbitant costs of power production using 8.5 MW generators, compounded by the absence of government-supplied electricity. The soaring petrol prices further exacerbated the situation, significantly burdening corporate finances.

A COPHC official disclosed that Gwadar Port used to incur a monthly diesel purchase cost of Rs. 20.3 million. Consequently, Chinese companies in Gwadar Free Zone were charged Rs. 49 per unit, a costly affair. However, due to fluctuating exchange rates and rising petrol prices, the monthly purchase cost has now surged to Rs. 40 million.

Recognizing the critical importance of ample electricity supply for development, the COPHC official emphasized that the company's current reliance on expensive generators hindered progress. Chinese investors are eager to relocate their industries from China to Pakistan, spanning a diverse range of sectors, including refinery, assembly, petrochemical, and textile.

Gwadar Port stands as a linchpin in reshaping Pakistan's economic landscape and opening up numerous opportunities for foreign direct investment, underscoring its pivotal role in the region's development.