Surplus power: Islamabad shows no interest in Chinese JV offer for $2 billion Investment in renewable energy

ISLAMABAD: A Chinese Joint Venture (JV) which intends to invest upto $ 2 billion in renewable energy in Pakistan, is reportedly not being given proper response from Islamabad despite repeated requests from Pakistan Consulate General Shanghai, sources told Newzshewz.
Pakistan Counsel General, Shehzad Ahmad Khan in a letter to Islamabad, has cited reference to the efforts of the Mission to seek investments in the renewable energy sector from China. He has given reference to the letters written on of 12th and 20th of September, 17th October, 08th November, 30th December 2024 and 23rd January, 2025 related to Letter of Intent (LoI) from M/s China Reserves Holding Development Yunnan Co. Ltd along with M/s ADM Group China as JV partner intending to do a Foreign Direct Investment in establishing 3.5 GW New Energy Photovoltaic Project with an approximate total initial investment of $ 350 million and later with the energy storage system raising to $ 2 billion.
According to the Counsel General, in line with fostering public-private partnerships, the China Reserves Holding Development Yunnan Co. Ltd and the ADM Group want to have a collaboration with the relevant entity of the Government of Pakistan. The government entity’s provision of land will be considered as their equity contribution to the project, solidifying the partnership for mutual success. The project implementation will be in phases (Phase-1 1.2 GW, Phase-2 1.3 GW & Phase-3 1.0 GW). In their initial research, while they visited Pakistan, they have shortlisted 4 cities of Multan (Punjab), Quetta (Baluchistan), Thar (Sindh) and Dera Ismail Khan (KPK).
Counsel General was of the view that to streamline the process and a proper follow up, Mission suggested for a designated representative of the Ministry as a point of contact for coordination, so as this investment is materialized, paving way for future such investments from China. It is pertinent to mention that the group has parallel window of opportunities to do investment in other countries but we are keeping them engaged, but now it is around 4 months and it will be quite difficult to keep them engaged for long.
He further stated that M/s China Reserve Holding Co through their, JV partner M/s ADM Group has again approached the Mission to expedite the final decision related to their Letter of Intent, so as in case of regret from Pakistan they could finalize their other parallel options.
Sources told that currently, the country has surplus power, there is no need to book new projects.
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