ISLAMABAD: Two Chinese companies have expressed interest in investing up to $2 billion in the establishment of 3.5 GW solar energy storage projects across four provinces of Pakistan.
Sources informed NewzShewz that Pakistan’s Consulate General in Shanghai has conveyed three requests since September 2024 to the Power Division, Board of Investment (BoI), and the Special Investment Facilitation Council (SIFC) from China Reserves Holding Development Yunnan Co. Ltd. These requests aim to identify a government entity to sign a Letter of Intent (LoI) for an investment ranging between $350 million and $2 billion. The proposed project would involve the construction of a 3.5 GW New Energy Photovoltaic Project to build an energy storage system in four cities across Pakistan.
According to Pakistan’s Ambassador to China, the Chinese group has separately signed an LoI with ADM Group. While the former is a state-owned enterprise in China, the latter is a China-registered company. Together, the two groups have proposed this joint investment. Details of the project, including a draft LoI, have already been sent to the Power Division and other relevant authorities.
The groups have requested a meeting with the Minister for Power to expedite the proposed projects. They are ready to travel to Pakistan to meet with the Power Minister and Secretary, and to sign the LoI with the Power Division or any government entity identified by the Power Division. The companies have also requested that a government entity provide land as equity for the project, with the possibility of leasing land for 30 years.
The project will be implemented in phases: Phase 1 (1.2 GW), Phase 2 (1.3 GW), and Phase 3 (1.0 GW). During their initial research trip to Pakistan, the companies shortlisted four cities for the project: Multan (Punjab), Quetta (Balochistan), Thar (Sindh), and Dera Ismail Khan (KPK).
Ambassador Khalid Hashmi believes that the joint venture proposed by these groups aligns well with the government’s priorities and policies regarding the promotion of new and affordable energy sources.
“We are quite optimistic about this project proposal and its potential to make a significant impact on our energy landscape,” the Ambassador added.
