ISLAMABAD: The United Arab Emirates (UAE) has withdrawn its interest in several multi-billion-dollar power sector projects in Pakistan, which were initially identified under a Memorandum of Understanding (MoU) signed on November 23, 2023, between the UAE’s Ministry of Investment and Pakistan’s Ministry of Energy (Power Division). The UAE cited that the proposed projects did not align with their current investment strategy.
Sources informed Newzshewz that Shah Jahan Mirza, Managing Director of the Private Power and Infrastructure Board (PPIB), referred to communications from the Pakistan Embassy in Abu Dhabi. He conveyed to senior officials that, following the MoU, four major projects were identified and presented to the UAE side, which included representatives from the UAE Ministry of Investment and the Abu Dhabi Development Holding Company (ADQ), during a virtual meeting held on July 30, 2024.
The projects were prioritized as follows:(i) 500 kV Transmission Line from Ghazi Barotha to Faisalabad West;(ii) 500 kV Transmission Line from Matiari to Moro to Rahim Yar Khan;(iii) 2000 MVAR Reactive Compensation ; and (iv) 765 kV and 500 kV Transmission Line from the Diamer Bhasha Dam Hydro Power Project (North to Centre). Technical studies for the Diamer Basha Dam Transmission Line project were still in progress at the time.
According to MD PPIB, additional information requested by the UAE was provided promptly. The UAE representatives indicated that their teams would review the shared data and offer feedback within two to three weeks. However, on August 30, 2024, the UAE side communicated via email that after a thorough review, their investment team concluded that the proposed projects did not align with their strategic priorities.
The MD PPIB has further stated that all identified priority projects are now being developed through international financial institutions (IFIs) with support from the Economic Affairs Division.
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