China and Pakistan Solidify Alliance with a $4.8 Billion Nuclear Power Plant Agreement

Lede: Pakistan and China have made a massive $4.8 billion agreement to construct a 1,200-megawatt nuclear power plant, marking a significant step forward in their bilateral relations.

What we know:

• A $4.8 billion agreement for a 1,200-megawatt nuclear power plant has been signed between Pakistan and China.
• Pakistan's Prime Minister, Shehbaz Sharif, announced the deal, which includes an immediate commencement of the Chashma 5 project.
• The MOU for the project was signed between the China National Nuclear Cooperation and the Pakistan Atomic Energy Commission.
• Despite project delays, China has already disbursed an initial 30 billion Pakistani rupees ($104.53 million) without increasing costs.

The Background: Pakistan and China have been engaged in several joint projects over the years, solidifying a partnership that both nations often refer to as an "all-weather" friendship. Their collaboration spans various sectors, but energy cooperation, in particular, has been a key focus area due to Pakistan's growing power needs. China's Belt and Road Initiative (BRI), a massive global infrastructure development strategy adopted in 2013, includes the China-Pakistan Economic Corridor (CPEC) as a central component. Under the CPEC, China has pledged $65 billion for infrastructure development in Pakistan. The recent $4.8 billion deal for the Chashma 5 nuclear power plant, while unclear whether it is part of the BRI pledge, is a testament to this enduring collaboration.

Likely Outcome:

• The project will significantly increase Pakistan's power generation capacity, enhancing its energy security.
• The economic development of Pakistan is expected to get a boost with this power project.
• The bilateral relationship between China and Pakistan will be further strengthened, increasing China's influence in the region.

Quotables:

• "The investment hails from a country that Pakistan views as its most dependable ally." – Prime Minister Shehbaz Sharif on the deal announcement.
• "I would like to express our gratitude towards China for not rescheduling costs despite the long delay." – Prime Minister Shehbaz Sharif.
• "The Chinese have disbursed an initial 30 billion Pakistani rupees ($104.53 million) to start the project." – Prime Minister Shehbaz Sharif on the initial fund disbursement.

Good Reads:

Pakistan and China sign $4.8 billion nuclear power plant deal (Reuters)

Pakistan Signs $4.8 Billion Nuclear Power Plant Deal With China (VOA)