The Gadani power park is not likely to take off in the near future because of issues in potential investors’ due diligence.
The power park of 6,600MW cumulative capacity, based on imported coal, was launched on July 26, 2013 for execution on a fast-track basis. But the government has failed to achieve substantial progress on the project and also in attracting potential investors.
Chinese investors were initially willing to set up six plants in the power park after having signed various MOUs, though in a non-transparent manner, as the procedure for the proposed investment had been violated.
Later on, the government decided to invite expressions of interest (EOIs) through the Private Power and Infrastructure Board (PPIB) on the basis of international competitive bidding. However, only six EOIs were received. These are from China Gezhouba Group Co, China Machinery Engineering Corp, China Huadian Engineering Co, Harbin Electric International Co China, ANC Holding UAE (Arab National Construction) and Genting Power Malaysia.
Interestingly, only Harbin Electric and Genting are involved in the core business of coal-power generation, and all others are either hydropower construction companies or engaged in trading, real estate and contracting. Excluding one, all other companies had earlier signed MOUs.