In January of 2008, Pakistan Electric Power Company (PEPCO) negotiated and inked a Rs.23 Billion (approximately US$329 Million) contract with Dong Fang Electric Corporation of
China to construct the Nandipur Power Project. A 425 MW (potential
capacity of 1,000 MW) combined cycle thermal power plant located near
Gujranwala at Nandipur. By June 2010, substantial work had been
undertaken and the expected date of completion was estimated to be April
2011. Due to delays with the Ministry of Law & Justice, the project
remained “dormant” for almost two years till March 2012. As a result,
machinery for the power plant valued at almost US$85 Million kept lying
at the Karachi Port. In
2012, Dongfang Electric Corporation, decided to terminate the contract
citing heavy losses due to the ongoing bureaucratic delays, and demanded
US$40 Million as compensation for the losses suffered.
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