China's Silk Road powers bids for $1.5 billion Pakistan utility stakeStaff Writer | August 24, 2016
Chinese state-backed firms are frontrunners to buy a $1.5 billion controlling stake in Pakistani utility K-Electric, Reuters reports.
Acquisition Shanghai Electric Power and China Southern Power Grid
Shanghai-headquartered Golden Concord Holdings is also among the bidders, as are some local Pakistani and other companies, according to people who know about the process.
Chinese companies' interest comes after China last year announced energy and infrastructure projects worth $46 billion in the South Asian nation, with a view to opening a trade corridor linking western China with the Arabian Sea.
That demand underpins President Xi Jinping's ambitious "One Belt, One Road" initiative, under which Beijing is seeking to open new trade routes and markets as the domestic economy slows.
Under the program, Chinese companies invested nearly $15 billion in participating countries last year, up one fifth from 2014. ■