Chinese and Pakistani investors inaugurated the project in Hub, Balochistan province, Pakistan, on March. 21, 2017. (Photo/CRI)

The groundbreaking ceremony for a China-Pakistan joint venture, a coal fired power plant, was held in Hub, in the country's southwestern Balochistan province on Tuesday.

The power complex, built at a cost of two billion US dollars, will install two 660 MW power units, and will provide electricity to four million local families after its completion in August 2019.

The power complex is also expected to generate nine billion kilowatt hours of electricity to the Pakistani national grid, and provide cheaper energy to Pakistani consumers.

Chain Power Hub Generation Company is a joint venture between the State Power Investment Corporation, China Power International Holding and the Hub Power Company Pakistan.

The Pakistani Federal Minister for planning and development Ahsan Iqbal laid the foundation stone for the plant, which is the first energy project in the China-Pakistan Economic Corridor (CPEC) and said the project is of great importance to Pakistan.

"Under CPEC, 35 billion dollars were allocated to the energy sector, because in 2013, Pakistan was facing not acute but acutest energy crisis in the country with power shortages up to 18 to 20 hours per day. Without fixing energy problem, no country can move forward on its development path. CPEC has helped Pakistan fix the biggest problem in its economy for future growth. CPEC has also proven that a friend in need is a friend indeed."

The CEO of the Hub Power Company Khalid Mansoor said with soaring crude oil prices, Pakistan has to lessen its reliance on oil and seek cheaper fuel sources to generate electricity.

"The inclusion of a coal project for the first time in the country and for the power generation portfolio will certainly diversify the fuel links, and to use the cost of electricity, which will bring down the industrial and manufacturing cost and increase the competitiveness of Pakistani export in the global area, which is a major concern these days. The project will comply with international environmental standards for coal fired power plants."

In addressing environmental pollution concerns, the chairman of the China Power International Holding Ltd Wang Binghua promised that 10 percent of the total cost of the project will be used in emission control.

"Super critical technology, which is globally used to improve coal efficiency and a highly efficient technology for desulfurization, will be used in the Hub project. The project will be equipped with an electrostatic precipitator to meet the highest requirements for emission controls in Pakistan. Low-nitrogen combustion technology will also be adopted to lower emissions of nitrogen oxides."

According to the Chinese consul general Wang Yu, a total of 11 energy projects in the China-Pakistan Economic Corridor are underway, which will have a generation capacity of more than 7,000 megawatts.