Identifier
Created
Classification
Origin
09KARACHI49
2009-02-11 11:53:00
CONFIDENTIAL
Consulate Karachi
Cable title:
SINDH - IRAN OFFERS PAKISTAN ELECTRICITY,
how-toVZCZCXRO8451 OO RUEHLH RUEHPW DE RUEHKP #0049/01 0421153 ZNY CCCCC ZZH O 111153Z FEB 09 FM AMCONSUL KARACHI TO RUEHC/SECSTATE WASHDC IMMEDIATE 0918 INFO RUEHIL/AMEMBASSY ISLAMABAD PRIORITY 0380 RUEHBUL/AMEMBASSY KABUL PRIORITY 0214 RUEHLO/AMEMBASSY LONDON PRIORITY 0257 RUEHNE/AMEMBASSY NEW DELHI PRIORITY 1800 RUEHLH/AMCONSUL LAHORE PRIORITY 2651 RUEHPW/AMCONSUL PESHAWAR PRIORITY 4534 RUEAIIA/CIA WASHDC PRIORITY RUEKJCS/SECDEF WASHDC PRIORITY RUEKDIA/DIA WASHINGTON DC PRIORITY RHMFISS/JOINT STAFF WASHINGTON DC PRIORITY RHEHAAA/NSC WASHINGTON DC PRIORITY RUMICEA/USCENTCOM INTEL CEN MACDILL AFB FL PRIORITY
C O N F I D E N T I A L SECTION 01 OF 02 KARACHI 000049
SIPDIS
E.O. 12958: DECL: 02/11/2019
TAGS: ENRG ECON PREL PGOV IR PK
SUBJECT: SINDH - IRAN OFFERS PAKISTAN ELECTRICITY,
TRANSMISSION LINE UPGRADES
REF: A. 08 ISLAMABAD 3737
B. KARACHI 27
C. KARACHI 45
Classified By: Classified by Consul General Stephen Fakan for reasons 1
.4 b and d.
C O N F I D E N T I A L SECTION 01 OF 02 KARACHI 000049
SIPDIS
E.O. 12958: DECL: 02/11/2019
TAGS: ENRG ECON PREL PGOV IR PK
SUBJECT: SINDH - IRAN OFFERS PAKISTAN ELECTRICITY,
TRANSMISSION LINE UPGRADES
REF: A. 08 ISLAMABAD 3737
B. KARACHI 27
C. KARACHI 45
Classified By: Classified by Consul General Stephen Fakan for reasons 1
.4 b and d.
1. (C) Summary: During a January 31 meeting co-sponsored by
the Pak Iran Friendship society in Karachi, the Iranian
Ambassador to Pakistan claimed that his country has offered
1,135MW of energy to Pakistan, an offer he said that could
double. He said that poor transmission infrastructure in
Balochistan was the main impediment to this deal, but offered
Iranian help to improve it. The Iranian envoy claimed the
GOP and GOI had made a breakthrough in a proposed natural gas
pipeline from Iran to Pakistan, without elaborating.
Iranian Offer of Electricity to Pakistan
--------------
2. (SBU) On January 31, Iranian Ambassador to Pakistan
Mashallah Shakari told a crowd of around 60 at the Pakistan
Institute of International Affairs in Karachi that his
country has offered to supply 1,135 MW of electricity to
Pakistan. He said Iranian representatives made the offer at
a December meeting in Islamabad with Pakistan Minister of
Water and Power Raja Pervez Ashraf. Shakari added that his
government was ready to double the offer, but said the GOP
lacked sufficient transmission infrastructure from the
Balochistan border with Iran to Quetta. He then explained
that Iran was willing to help upgrade the electricity
transmission system if the GOP requested assistance. (Note:
He explained that the original offer included provision of
35MW to the Balochistan border area, 100MW to Gwadar, and
1000MW to "the rest of Pakistan." End note.)
Gas Pipeline Project
--------------
3. (C) Shakari claimed that, during a January meeting in
Islamabad, the Iranian and Pakistani Petroleum Ministers had
"made progress" on an agreement for construction of a gas
pipeline (the IPI Gas Pipeline Project) that would supply
Pakistan with Iranian natural gas. He defended the price
Iran would charge for the gas as a necessary reaction to
world prices. (Note: The project has long been stalled over
high and often changing Iranian price demands, as well as
distrust between India and Pakistan on security of supply.
End note.)
Pak Iran Joint Investment Company Focusing on Energy Projects
-------------- --------------
4. (C) Mian Sajjad Ahmed, an official with the Pak Iran
Joint Investment Company, told Post that his organization is
exploring joint Pakistan-Iran energy projects involving wind
and solar energy along with oil and gas projects. Ahmed, who
said he is former Citibank employee, explained that Iranian
companies are easier to work with than Pakistani companies
because they are more straightforward and less corrupt. He
added that his company has a number of former Citibank and
Bank of America officials. (Note: According its website,
www.pijicl.com, the Pak Iran Joint Investment Company was
created by an agreement between the GOP and the GOI. End
note.)
Comment
--------------
5. (C) The conference, co-sponsored by the Pak-Iran
Friendship Association to commemorate the 30th anniversary of
the "Islamic Revolution," appears to be the latest in a
series of Iranian efforts to generate support in Pakistan
with the aid of local groups (ref B),particularly in
business and energy related areas. However, the Iranians
appear to lack much official support in Sindh province. The
seats near the podium reserved for Sindh Chief Minister Qaim
Ali Shah and Retired Pakistan Supreme Court Justice Sajjad
Ali Shah remained empty throughout the event.
KARACHI 00000049 002 OF 002
6. (C) In his speech and discussion with the crowd
afterwards, Ambassador Shakari appeared to be making a case
for increasing Iranian ties to Pakistan's energy sector,
rather than announcing any sort of breakthrough. He did not
give any specifics regarding the progress he claimed the GOP
and GOI had made regarding the natural gas pipeline deal.
FAKAN
SIPDIS
E.O. 12958: DECL: 02/11/2019
TAGS: ENRG ECON PREL PGOV IR PK
SUBJECT: SINDH - IRAN OFFERS PAKISTAN ELECTRICITY,
TRANSMISSION LINE UPGRADES
REF: A. 08 ISLAMABAD 3737
B. KARACHI 27
C. KARACHI 45
Classified By: Classified by Consul General Stephen Fakan for reasons 1
.4 b and d.
1. (C) Summary: During a January 31 meeting co-sponsored by
the Pak Iran Friendship society in Karachi, the Iranian
Ambassador to Pakistan claimed that his country has offered
1,135MW of energy to Pakistan, an offer he said that could
double. He said that poor transmission infrastructure in
Balochistan was the main impediment to this deal, but offered
Iranian help to improve it. The Iranian envoy claimed the
GOP and GOI had made a breakthrough in a proposed natural gas
pipeline from Iran to Pakistan, without elaborating.
Iranian Offer of Electricity to Pakistan
--------------
2. (SBU) On January 31, Iranian Ambassador to Pakistan
Mashallah Shakari told a crowd of around 60 at the Pakistan
Institute of International Affairs in Karachi that his
country has offered to supply 1,135 MW of electricity to
Pakistan. He said Iranian representatives made the offer at
a December meeting in Islamabad with Pakistan Minister of
Water and Power Raja Pervez Ashraf. Shakari added that his
government was ready to double the offer, but said the GOP
lacked sufficient transmission infrastructure from the
Balochistan border with Iran to Quetta. He then explained
that Iran was willing to help upgrade the electricity
transmission system if the GOP requested assistance. (Note:
He explained that the original offer included provision of
35MW to the Balochistan border area, 100MW to Gwadar, and
1000MW to "the rest of Pakistan." End note.)
Gas Pipeline Project
--------------
3. (C) Shakari claimed that, during a January meeting in
Islamabad, the Iranian and Pakistani Petroleum Ministers had
"made progress" on an agreement for construction of a gas
pipeline (the IPI Gas Pipeline Project) that would supply
Pakistan with Iranian natural gas. He defended the price
Iran would charge for the gas as a necessary reaction to
world prices. (Note: The project has long been stalled over
high and often changing Iranian price demands, as well as
distrust between India and Pakistan on security of supply.
End note.)
Pak Iran Joint Investment Company Focusing on Energy Projects
-------------- --------------
4. (C) Mian Sajjad Ahmed, an official with the Pak Iran
Joint Investment Company, told Post that his organization is
exploring joint Pakistan-Iran energy projects involving wind
and solar energy along with oil and gas projects. Ahmed, who
said he is former Citibank employee, explained that Iranian
companies are easier to work with than Pakistani companies
because they are more straightforward and less corrupt. He
added that his company has a number of former Citibank and
Bank of America officials. (Note: According its website,
www.pijicl.com, the Pak Iran Joint Investment Company was
created by an agreement between the GOP and the GOI. End
note.)
Comment
--------------
5. (C) The conference, co-sponsored by the Pak-Iran
Friendship Association to commemorate the 30th anniversary of
the "Islamic Revolution," appears to be the latest in a
series of Iranian efforts to generate support in Pakistan
with the aid of local groups (ref B),particularly in
business and energy related areas. However, the Iranians
appear to lack much official support in Sindh province. The
seats near the podium reserved for Sindh Chief Minister Qaim
Ali Shah and Retired Pakistan Supreme Court Justice Sajjad
Ali Shah remained empty throughout the event.
KARACHI 00000049 002 OF 002
6. (C) In his speech and discussion with the crowd
afterwards, Ambassador Shakari appeared to be making a case
for increasing Iranian ties to Pakistan's energy sector,
rather than announcing any sort of breakthrough. He did not
give any specifics regarding the progress he claimed the GOP
and GOI had made regarding the natural gas pipeline deal.
FAKAN