Pakistan and China have finalized a $4.8 billion deal to build a 1,200-megawatt nuclear power plant, Prime Minister Shehbaz Sharif announced on June 20, praising the investment by one of the country’s most steadfast allies.
The project, known as Chashma 5, will be built in the central city of Chashma and marks the seventh Chinese-built nuclear facility in the South Asian country, solidifying the strong partnership between the two nations.
The memorandum of understanding (MoU) was signed between China National Nuclear Cooperation and the Pakistan Atomic Energy Commission (PAEC) on Tuesday, under Prime Minister Shehbaz Sharif’s supervision. President of China National Nuclear Corporation and Member Power and PAEC Muhammad Saeedur Rehman signed the MoU.
Under the agreement, China will utilize its advanced HPR 1000 technology, also known as Hualong One, to construct the nuclear power unit. It is worth noting that this will be the third facility in Pakistan to feature the HPR 1000 pressurized water reactor technology.
PM appreciates Chinese investment
Prime Minister Shehbaz Sharif expressed his gratitude to China for their significant investment, emphasizing the message it sends regarding the trust and faith Chinese companies and investors have in Pakistan.
“Investment from China in this project to the tune of $4.8 billion sends a loud and clear message that Pakistan is a place where Chinese companies and investors continue to show their trust and faith,” Sharif said.
He also thanked Beijing for offering a substantial discount of over $100 million for the Chashma 5 power plant. Despite the project’s initial delay, the Chinese partners did not reschedule costs, demonstrating their commitment to the endeavor.
“This project is part of our energy security plan to diversify the energy mix with a focus on ensuring the provision of cheap electricity to the industry & relief to the common man,” the Pakistan PM tweeted after the ceremony.
The Chashma 5 nuclear power plant is a crucial component of Pakistan’s energy security plan, aimed at diversifying the country’s energy mix and providing affordable electricity to both industries and the general population, said PM Shehbaz.
Pakistan’s Nuclear Energy Production
The successful implementation of two nuclear power plants in Karachi, K2 and K3, each with a capacity of 1,100 megawatts, has already boosted Pakistan’s nuclear energy production to over 3,500 megawatts. Additionally, the nuclear power plants at Chashma are contributing more than 1,300 megawatts to the national grid, according to a Pakistan Atomic Energy Commission spokesperson.
The completion of the Chashma 5 nuclear power plant will not only enhance Pakistan’s energy capacity but also foster further collaboration between Pakistan and China in the field of nuclear energy. This latest project underscores the deep-rooted friendship and cooperation between the two nations, contributing to Pakistan’s economic growth and energy sustainability in the long run.
Mr. Wang Yongge, President of China National Nuclear Corporation Overseas Ltd (CNOS), and Mr. Muhammad Saeed Ur Rehman, Member Power, Pakistan Atomic Energy Commission (PAEC) signing an agreement for Unit 5 of Chashma Nuclear Power Plant (C-5). Prime Minister Shehbaz Sharif, Ms.… pic.twitter.com/HgM5JBHCml
— Government of Pakistan (@GovtofPakistan) June 20, 2023
China-Pakistan Economic Corridor
China has been a close ally of Pakistan, with both maintaining strong defense and economic ties. Under the China-Pakistan Economic Corridor (CPEC), an extension of China’s global Belt and Road Initiative, China has invested more than $20 billion in infrastructure projects in Pakistan over the past decade. This collaboration has generated employment opportunities and has significantly addressed Pakistan’s energy crisis.