Accord on 1,000MW electricity from Iran in Aug

Water and Power Minister Raja Pervez Ashraf will visit Iran in August to sign an agreement for importing 1,000MW of electricity.

The decision about the minister’s visit was taken at a meeting between Mr Ashraf and Iranian Ambassador Mashallah Shakeri here on Wednesday. The ambassador briefed the minister on a power transmission line from Iran to Gwadar.

Pakistan plans two projects for importing electricity from Iran. Work on a project to import 100MW for Gwadar has already been initiated. The $3.1 million project is scheduled to be completed by the end of 2012.

Pakistan is already importing 39MW from Iran for border areas and Gwadar.

A power ministry official said that a feasibility report on the 1,000MW project would be completed this month. “A 700km transmission line will be installed at a cost of $500m,” the official said, adding that the project was expected to be completed in five years.

According to a press release, the minister and the ambassador agreed that technical experts of both countries would examine the project. “It has been decided that Mr Ashraf will visit Iran within the next couple of months for further deliberation on the project and its early completion,” it said.

After completion of the feasibility report technical-level talks are expected to be held in the last week of July to decide the tariff.

Sources said that negotiations for revision of tariff for the 39MW being imported since 2003 were under way as sought by the Iranian exporting company. Ambassador Mr Shakeri also briefed Mr Ashraf on the proposed Iran-Pakistan-Turkey rail link. He said the project would boost trade and social relations among countries of the Economic Coordination Organisation.

Mr Ashraf said Pakistan actively supported the project which would strengthen links among ECO countries, improve regional cooperation and increase people-to-people contacts.

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