Major Progress in Electricity Provision Boosts Investor Confidence in Gwadar North Free Zone
ISLAMABAD – The Gwadar Port Authority (GPA) has completed nearly 80% of the work to supply 10 MegaWatts (MW) of electricity to the Gwadar North Free Zone, providing a much-needed power boost for investors and businesses in the area. The project, aimed at stabilizing electricity supply since the zone's inception, is slated for completion by the third week of May.
Instead of conventional overhead lines, a 300-meter underground power cable is being installed from the Deep Sea Port grid station, leading to a newly constructed sub-station at the entrance of the North Free Zone. This sub-station, equipped with control panels, a high-tension room, and cabinets, will regulate the power distribution to the factories within the zone.
A 5 km long 132 kV distribution line, with two feeders each carrying 5 MW, is being laid from the sub-station. Step-down transformers will be installed at the factory sites of companies such as Han Geng and Agven to meet their specific power needs. The Karachi-based company, Sigma, is responsible for building the distribution network in the Gwadar North Free Zone.
A GPA official stated that the entire process, based on a joint feasibility survey by the Quetta Electric Power Supply Company (QEPSC) and China Overseas Ports Holding Company (COPHC), is being executed with utmost urgency. The power supply will originate from the Gwadar Port Grid Station and extend to the North Free Zone's main entrance.
"The Deep Sea Port’s sole grid station, established in 2019, was initially powered by diesel generators due to the inadequate power supply from QEPSC, resulting in high production costs using fossil fuels," he explained.
He further elaborated that upon completion of the power supply work, the 8.5 MW diesel generator will be decommissioned, and the grid station will be connected to three power sources: the national grid in Quetta, Gabd-Remdan near the Iran border, and the Nag-Besima section of another Iranian border.
A COPHC official highlighted that the current electricity cost, generated by the 8.5 MW diesel generator, is approximately Rs. 90 per unit. The new 10 MW power supply will reduce this cost to around Rs. 55 per unit, saving about Rs. 35 per unit for investors and factory owners. This reduction will enhance financial leverage and boost production growth, benefiting both current and prospective businesses in the Gwadar North Free Zone.