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PAKISTAN PLANS TO PURCHASE TWO NUCLEAR POWER PLANTS FROM CHINA

15 Nov 2011

AS A PILOT PROJECT WITH CHINA Pakistan has planned to purchase two(2) Nuclear Power Plants(NPPs) with a combined capacity of 2,000 megawatts (Mw) from China, which will be utilized for setting up Karachi Nuclear Power Plant (NPP) Kanupp-2 and Kanupp-3 NPPs

PAKISTAN HAS PLANS TO ADD 8,800 Megawats (Mw) with NPPs by 2030 according to a “Pakistan Energy Security Action Plan”. The import of NPPs should lead to electricity generation at cheaper rates compared to the thermal source and contribute to abating the current electrical power shortage. About a month ago(Oct 2011), power shortages reached their peak at around 8,000 to 8,500 Mw, forcing long hours of outages across the country. The power outages disrupted industrial activity, and diminished economic growth of the country (2.4 % last fiscal year).

PAKISTAN AND CHINA CONSIDERING OTHER JOINT NPP PROJECTS. According to The Express Tribune, China National Nuclear Corporation (CNNC) and the Pakistan Atomic Energy Commission are likely to enter into an agreement to conduct a joint-study to finalize design modifications which would enable Pakistan to acquire two(2) nuclear power plants, each having power generation capacity of 1,000 Mw. After completion of this project, a contract for establishing Kanupp-2 and Kanupp-3 would be negotiated.  The Pakistani Planning Commission says CNNC may be asked to grant intellectual property rights for the existing 1,000 Mw plant, and suggest steps which could help Pakistan avoid violation of property rights.

CHINA HAS THREE(3) STATE-OWNED CORPORATIONS, licensed to own and operate nuclear power plants: 1. China National Nuclear Corporation (CNNC),  2. China Guangdong Nuclear Power Holding Company (CGNPC) and, 3. China Power Investment Corporation (CPIC).

CHINESE FIRM CGNPC currently operates four(4) NPPs generating 3,758 Mw in China, and is also involved in the construction of 16 other projects, with a total generating capacity of 25,000Mw. The company’s focus has been on “three-loop”(very modern cooling design) – 1,000 Mw Nuclear Power Plants.

PAKISTAN WANTS COMPETITIVE CONTRACTS The Pakistani Planning Commission has  inquired whether PAEC had approached all three(3) nuclear power plant developers to ensure fair competition in awarding the NPP contracts; “Moreover comparison of intellectual property rights of other nuclear power plant vendors may also be brought out,” the Planning Commission said.

Thanks to The Express Tribune, 11 Nov 2011, Islamabad Pakistan.

SO THE STORY GOES…

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BACKGROUND

PAKISTAN IS A VERY OLD CIVILIZATION  “The Indus Valley civilization”, one of the oldest in the world, dates back at least 5,000 years, spread over much of what is presently Pakistan. The political separation in 1947 of British India into the “Muslim state of Pakistan” (with West and East sections) and largely Hindu India was never satisfactorily resolved. India and Pakistan fought two wars (1947-48 and 1965) – over the disputed Kashmir territory.  They have outstanding metal craftsmen (old fashioned kind) who are the envy of the world, and an unemployment rate below 8%.

PAKISTANI PEOPLE TODAY

1. Races: Punjabi 44.68%, Pashtun (Pathan) 15.42%, Sindhi 14.1%, Sariaki 8.38%, Muhajirs 7.57%, Balochi 3.57%, other 6.28%

2. Religion: Muslim 95% (Sunni 75%, Shia 20%), other (includes Christian and Hindu) 5%

3. Population: 188 million (2011)

4. Languages:  Punjabi 48%, Sindhi 12%, Saraiki (a Punjabi variant) 10%, Pashtu 8%, Urdu (official) 8%, Balochi 3%, Hindko 2%, Brahui 1%, English (official; lingua franca of Pakistani elite and most government ministries), Burushaski, and other 8% (NINE LANGUAGES- A REAL PROBLEM.)

5. Literacy Rate: Male: 63% , Female: 36% (SURPRISING – GIVEN NINE LANGUAGES).

6. Physicians: Less than one per 1,000 population & General Life expectancy: about 65 years.

7. Potable Water availability: Urban: 95% of population – Rural: 87% (Very Good!)

8. Fossil Fuels availability:  Extensive natural gas reserves, limited petroleum, poor quality coal.

GEOGRAPHICALLY: Pakistan is located between the “rock and the hard place”: Afghanistan to its N.W., India to its S.E., China to its North. The River Hindus “runs through it” (north to south). It has three important ports in the south into the Arabian Sea – Karachi is one of them.

PAKISTAN HAS NUKES – To the concern of its neighbors and world, they have both nukes (thermo-nuclear devices), and delivery means.  These are supposedly zealously guarded by its Military.

CIA Data source:

https://www.cia.gov/library/publications/the-world-factbook/geos/pk.html

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MY TAKE ON THE STORY

One has to recognize that some countries have harbored Nuclear Power Plant ambitions for many years.  Many had even viewed “going Nuclear” as the road to modernity and true economic progress.  THEN ON 12 MARCH 2011, FUKUSHIMA BLEW UP ON THE FACE OF JAPAN, AND THE WORLD.  THE DAI No.1 TRAGEDY AFTERMATH HAS CHANGED EVERYTHING!!, and made the world keenly aware of NPPs inherent creation of highly toxic “Transuranics”, with extremely long decay life, and nowhere to store them.  Witness Japan today! People must now daily “tip-toe through the tulips” of radiation, with their back to the sea.  A hell of a price to pay!

NOW CHINA WANS TO HELP PAKISTAN BUILD NUCLEAR POWER PLANTS, WHEN IN CHINA ITSELF, SUCH INITIATIVES ARE MOSTLY “ON HOLD” BY GOVERNMENT ORDER.  PAKISTAN IS FOLLOWING A PLANNED APPROACH OVER THE NEXT 30 YEARS.

PAKISTAN WANTS COMPETITIVE CONTRACTS The Pakistani Planning Commission has  inquired whether PAEC had approached all three(3) nuclear power plant developers to ensure fair competition in awarding the NPP contracts; “Moreover comparison of intellectual property rights of other nuclear power plant vendors may also be brought out,” the Planning Commission said.

Aha!  – HAPPY TO SEE! Pakistan is proceeding cautiously, and with all due concern for such vital aspects of Governmental buying anything as COMPETITIVE PROCUREMENT. This almost always lowers the asking price by at least 25% (my experience).  That is the reason “sole-source contracts” are awarded by corrupt government officials everywhere.

Aha! – Pakistanis are also concerned with “intellectual property rights”; Rightly so, these are the key to “Follow-on Procurement” of spare parts and Refueling of the power plants for life (40 to 60 years).  As such “intellectual property rights” are the key to long term satisfaction, and denote honesty in negotiation.  THOSE COUNTRIES NOT WILLING TO GRANT THEM, HAVE LONG TERM AMBITION TO GET YOU BY THE PARTS!   You know what I mean, don‘t you?  PAKISTAN IS FOLLOWING A GOOD PLAN – SUCH AS IT IS.  OTHER NATIONS CONSIDERING NUCLEAR SHOULD FOLLOW SUIT.

WILL CHINA ACCEPT ? We will see!  I think not.  That is where you find out who your friends are.  Truth be told, most Nuclear purveyors are just after the money – Lots of it!, now and for the next 60 years.

 PAKISTAN HAS UNDEVELOPED NATURAL GAS RESOURCES; Pakistan is no doubt among many nations not knowing where to look for safe, abundant energy.  In my view, they might do better to develop their Nat Gas resources.  Many other countries of the world are doing so because Nat Gas burns much cleaner than Coal.  One hopes this will give our world the time it needs to develop our “green energy” as best can.

gonzedo

 

November 15, 2011 at 1:07 AM Comments (23)