Expansion in nuclear power generation hits snags
The development of C-5, which is the fifth unit of the Chashma Nuclear Power Generating Station, has hit a snag because of the reported refusal by the Ministry of Finance to furnish a sovereign guarantee, sources told Dawn on Monday. The Chinese partner has agreed to provide financing for up to 85 per cent of the $3.7 billion nuclear power plant having a nameplate capacity of 1,200 megawatts, subject to the sovereign guarantee. Such guarantees are meant to assure the creditor that the government will satisfy the obligation if the primary obligor — the Pakistan Atomic Energy Commission (PAEC), in this case — defaults on the loan repayment. The loan programme of the International Monetary Fund (IMF) seems to have tied the government’s hands with regard to the sovereign guarantee. As part of the 2022-23 budget, the government has laid before the National Assembly a Statement of Contingent Liabilities.