Islamabad (Staff Report): State Grid of China will fund a project of 4,000 MW power transmission line in Pakistan , cost $1.5 billion, Pakistan said on Friday, the latest in a series of Chinese investments in its South Asian neighbour.
The Pakistani government said, the high-capacity transmission line will be the first of its kind in Pakistan and will link Matiari town in the south, near a new power station, to Lahore city in the east, a key link in transmission infrastructure.
The government said in a statement Mohammad Younus Dagha, Pakistan 's secretary of water and power, and Shu Yinbiao, chairman of State Grid Corporation of China signed an agreement on the project on Thursday in Beijing,.
a spokesman for the Pakistani prime minister's office said, construction will begin in January, and should take about 20 months, Pakistan has been plagued by a shortage of electricity for years, with widespread rolling blackouts in both rural and urban areas.
The government has managed to reduce load shedding - scheduled power outages - in some areas, but production gaps and distribution woes remain.
Other Chinese investment in Pakistan has included the acquisition of a majority stake by Shanghai Electric of the K-Electric power production and distribution company for $1.8 billion.
Last week, a Chinese-led consortium bought a 40 percent stake of the Pakistan Stock Exchange for an estimated $85 million.