K-Electric signs a Joint Development Agreement with China Datang Overseas Investment Company & China Machinery Engineering Company

K-Electric signs a Joint Development Agreement with China Datang Overseas Investment Company & China Machinery Engineering Company

700 MW Project to bring in 1 BN USD investment into Pakistan

Karachi, Pakistan –September 14, 2015 – K-Electric (KE), China Datang Overseas Investment Company (CDTO) and China Machinery Engineering Company (CMEC) have entered into a binding tripartite Joint Development Agreement (JDA) for the development of a 700 MW (2×350 MW) coal-fired power project at Port Qasim. This agreement further consolidates the understanding reached between the three parties earlier this year. Considerable progress has been made in the project during the last few months. This agreement is a major step forward towards the finalization of this flagship project.

The project aims to bring investment of over USD 1 billion into Pakistan. This will not only help the country in diversifying the fuel mix but also lower the generation cost benefiting the end consumer.

CEO K-Electric, Tayyab Tareen along with the senior management received the high level delegation from CDTO and CMEC which included the President of CDTO Mr. Duan Zhongmin and Vice President of CMEC, Mr. Mr Wang Tianyi.

Sharing his thoughts, KE CEO Mr. Tayyab Tareen said, “It gives us immense pleasure to join hands with companies like CDTO and CMEC for the development of this project of critical importance. KE is developing new generation projects at highest priority. This particular project will go a long way in addressing the power needs of the country, specifically the people of Karachi.”

Mr.Duan Zhongmin, President CDTO stated, “As one of the largest Chinese power generation groups, China Datang shall always attach great importance to the power sector development of Pakistan. China Datang shall be fully committed to work closely with CMEC and K-Electric towards the completion of Port Qasim 2x350MW Coal-fired Power Plant in a timely manner, which shall contribute to the solution of energy shortage, to boost the economy, and to serve the people of Karachi”.

Mr. Mr Wang Tianyi, Vice President of CMEC also added. “Being in Pakistan for more than 30 years, CMEC has always been devoting itself in improving the energy infrastructure of Pakistan. We, as a shareholder and EPC contractor, are highly optimistic to deliver a best-in-class power plant in a timely manner for the people and the prosperous of the city of Karachi.

CDTO is a wholly-owned subsidiary of China Datang Corporation (CDT), a Fortune 500 listed company with approximately 120,000 MW under its portfolio. The company specializes in providing technical and professional expertise in power production, particularly in power-related coal mine development.

CMEC is a renowned engineering contractor specializing in construction of power projects in generation, transmission and distribution sectors. The Company has an established footprint in Pakistan, having been involved in various power projects including the Jamshoro and Muzzafargarh thermal power plants and the Neelum Jhelum Hydro power project.