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CPEC’s Sahiwal power plant faces Senate probe over coal procurement pricing

by AMG
April 20, 2025
in Energy
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HSR denounces false coal procurement accusations, urges NEPRA to protect fair business practice
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ISLAMABAD: The Senate Standing Committee on Power has summoned the National Electric Power Regulatory Authority (NEPRA) for a detailed briefing next week on the coal procurement process of the 1,320 MW imported coal-fired Sahiwal Power Plant. The plant was established by a Chinese company under the China-Pakistan Economic Corridor (CPEC) framework, sources told Newzshewz.

During a previous meeting, Committee Chairman Senator Mohsin Aziz acknowledged a typographical error in earlier documents, where “Narowal” was mistakenly mentioned instead of “Sahiwal.” He referenced media reports alleging that coal for the Sahiwal plant was procured at a rate of Rs 75,000 per ton—nearly double the market rate of Rs 40,000 per ton.

Minister for Power, Sardar Awais Khan Leghari, who attended the meeting, requested that the agenda item be corrected and assured the committee that all relevant insights would be shared in the next session.

He clarified that the Sahiwal plant is not a government-owned Independent Power Producer (IPP) and recommended that NEPRA be invited to the upcoming meeting to explain how it monitors and regulates the power sector’s policy framework. The Committee agreed to the Minister’s proposal.

Mehfooz Bhatti, Additional Secretary (Power Finance) at the Power Division, further advised that the Committee specify which coal procurement lot is under scrutiny, as coal is acquired in multiple batches.

The Committee has officially recommended amending the agenda item to correctly refer to the “Sahiwal Coal Power Plant” instead of “Narowal.” NEPRA has been called upon to present a comprehensive overview of coal procurement practices and regulatory oversight.

As per the agenda, the next meeting is scheduled for April 30, 2025, where the Minister for Power and NEPRA Chairman are expected to brief the Committee on the coal purchasing price mechanism in Pakistan’s power sector.

Also please read the following stories.

HSR accuses two local coal suppliers of misleading authorities
HSR denounces false coal procurement accusations, urges NEPRA to protect fair business practice

Chinese coal plants challenge NEPRA’s  tariff alteration plans, threaten arbitration

Ends

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