President Asif Ali Zardari has assured Shanghai Electric that Pakistan remains committed to solving all pending problems ‘friendly’. He invited the Chinese energy conglomerate to explore more investment opportunities in the country’s energy transmission and distribution infrastructure, state media reported Monday.
The development took place during the visit of President Zardari to the headquarters of Shanghai Electric, a few days after the company formally ended its acquisition of $ 1.77 billion of $ 1.77 billion k-electric, citing the changing regulatory and commercial environment of Pakistan.
The president met with President Wu Lei and visited the company’s facilities in Shanghai, where he was informed about Shanghai Electric’s operations in Pakistan, including projects related to Thar coal, nuclear energy and coal energy generation.
The meeting occurred less than a week after the Shanghai Electric Board of Directors approved a resolution to withdraw from its attempt to acquire a 66.4% participation in K-Electric of Kes Power Limited.
The agreement, originally signed in 2016, had been caught in Limbo for almost nine years due to overlapping regulatory obstacles, legal disputes and economic volatility in Pakistan.
“Since the counterpart has constantly failed to meet the preceding conditions for closing, and changes in the business environment in Pakistan, this transaction is no longer aligned with the company’s international development direction,” Shanghai Electric said in a statement last week.
Despite the repeated commitments of the successive governments to solve regulatory bottlenecks, progress remained difficult to achieve. Shanghai Electric had originally agreed to acquire 18.3 billion K-Electric shares, together with a bonus component based on the yield of $ 270 million, but the agreement stagnated after the need for multiple government approvals and unclear compliance requirements.
Thar coal projects
During his visit, President Zardari thanked Shanghai Electric for his contributions to the energy sector and the economic development of Pakistan, especially his role in creating employment and the expansion of infrastructure.
He emphasized the strategic importance of the Thar Coal project and highlighted the potential of coal gasification as a change of play for Pakistan energy and agriculture sectors.
In a key development, the president also witnessed the signing of a memorandum of understanding (MOU) for the establishment of the first coal gasification project and pakistan fertilizers based on Thar coal. The agreement was signed between MFTC Coal Gasification and Manufacturing (PVT) LTD and but Sindh Sindh Resources (PVT) LTD / Shanghai Electric.
This initiative is expected not only to reduce the dependence of imported fuels, but also reinforces agricultural productivity by providing fertilizers produced locally. The Shanghai Electric CEO expressed its appreciation for the security measures provided to the Chinese workforce in Pakistan.
President Zardari reaffirmed his government’s commitment to guarantee a safe and friendly environment for investment for all foreign companies operating in the country.
Founded in 1902, Shanghai Electric is one of the main manufacturers of state teams in China, with a global footprint in energy, energy and industrial innovation.
