Chashma-5 Nuclear Power Plant to Cost Rs1.12 Trillion, Completed in 81 Months
The Pakistan Atomic Energy Commission (PAEC) has filed a tariff petition with NEPRA for the construction of the Chashma Nuclear Power Plant-5 (C-5), a 1,200 MW project. The proposed plant will be built over 81 months at an estimated cost of Rs1,124.842 billion. PAEC is requesting a levelized tariff of Rs16.7354 per unit for a 40-year period.
Key Financial Details
- Total Project Cost: Rs1,125 billion
- EPC Cost: Rs965.835 billion
- Non-EPC Costs: Rs69.469 billion
- Interest During Construction (IDC): Rs89.538 billion
- Equity-Debt Ratio: 19% equity, 81% debt
- Debt Source: Financing from China with a 3% interest rate
- Exchange Rates Assumed:
- Rs280/USD
- Rs38.50/RMB
- RMB7.27/USD
The PAEC proposes a tariff of Rs19.8268/unit for the first 12 years and Rs9.6320/unit for years 13 to 40. The tariff structure would include Energy Purchase Price (variable) and Capacity Purchase Price (fixed) on a take-or-pay basis. The Return on Equity (RoE) sought is 14.50% annually, with equity redemption spread over 28 years from year 13.
Technical and Economic Parameters
- Overnight Capital Cost: $3,081/kW
- Debt Repayment Period: 12 years, with an 8-year grace period
- Plant Factor: 90%
Nuclear Power Infrastructure in Pakistan
Pakistan currently operates two major nuclear sites:
- Chashma Nuclear Power Generating Station (CNPGS) near Mianwali, Punjab
- Units C-1, C-2, C-3, and C-4 have a combined capacity of 1,262 MW
- Karachi Nuclear Power Generating Station (KNPGS) in Karachi, Sindh
- KANUPP-2 and KANUPP-3 provide 1,100 MW each
- KANUPP-1 (137 MW) is being decommissioned after 50 years
The addition of C-5 will expand Pakistan’s nuclear capacity and contribute to long-term energy security. The project’s approval depends on NEPRA’s tariff determination, which is critical for ensuring economic feasibility and sustainable energy pricing.
