Electrifying Gwadar Free Zone North: A Transformation in 60 Days

According to Gwadar Pro, the joint feasibility study concluded that all physical and operational indicators are favorable, ensuring a consistent and cost-effective supply of 5 MW electricity to Gwadar Free Zone (North) as the initial phase of this endeavor.

In the next phase, pending successful outcomes, Gwadar Free Zone (South) and Gwadar Port will receive a reliable 12 MW power supply in the coming months, as confirmed by a QEPSC official in communication with Gwadar Pro.

"As part of the initial phase preparations, we are actively establishing the necessary infrastructure for electricity installation, including the erection of poles and transmission lines," remarked the QEPSC official.

This electricity network will span over 3 kilometers, connecting Gwadar Port's Grid Station to Gwadar Free Zone (North). The Deep-Sea Port Grid Station, established exclusively for Gwadar Port and Free Zone in 2019, had previously relied on costly diesel generators to meet power demands due to inadequate supply.

The QEPSC official further stated, "After an extensive feasibility study spanning several months, we are pleased to announce that we will be discontinuing the use of the 8.5 MW Diesel Generator and connecting Gwadar Port's sole Grid Station to three new sources."

These sources include the national grid station in Quetta, Gabd-Remdan on the Pakistan-Iran border, and the Nag-Besima section, also on the Pakistan-Iran border.

"The new power arrangement will significantly benefit investors in Gwadar Free Zone (North)," he emphasized.

A COPHC official highlighted the exorbitant electricity prices in Gwadar Free Zone (South) and Gwadar Port, which had been a considerable financial burden for the port's operators and companies in Gwadar Free Zone (South).

"We used to spend Rs. 1.5 million monthly on petrol for Gwadar Port and Rs. 3.5 million for Gwadar Free Zone (South). Chinese companies in Gwadar Free Zone (South) were charged around Rs. 85 per unit," the official noted.

However, with the availability of 5 MW under the new arrangement in the first phase, the cost of electricity for industries and factories in Gwadar Free Zone (North) is expected to range from Rs. 50 to Rs. 55 per Kilowatt, significantly reducing operational expenses.

This cost-saving benefit will also extend to Gwadar Port and Gwadar Free Zone (South) in the subsequent phase, resulting in approximately Rs. 30 per kilowatt in savings for investors and factory owners.

These developments are poised to have a direct positive impact on financial stability and production growth, benefiting both existing enterprises and potential investors, according to the COPHC official. At present, Gwadar Free Zone (South) has registered approximately 51 companies, with 10, including CBC, H.K. Sons, Agvon, Linyi Trade City, China Ecological Company, China Harbor Engineering Company, Hengmei, Jintai, and others, actively operating.

Meanwhile, in Gwadar Free Zone (North), three companies are currently in the process of completing their construction work to initiate industrial operations within the next two months. Additionally, companies like East Sea Group Limited have entered into agreements to establish a $4.5 billion oil refinery in Gwadar Free Zone (North), and the availability of reliable and cost-effective electricity will significantly boost their endeavors.