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Chinese Company Issues Force Majeure Citing Grave Security Situation in Pakistan

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In a devastating blow to Pakistan’s energy infrastructure, a terrorist attack targeting Chinese engineers has led to a suspension of work on the 765 kV transmission line project associated with the Dasu Hydropower Project. The assault, which occurred near Besham, KP province of Pakistan on March 26, claimed the lives of five Chinese engineers along with one Pakistani citizen.

The Chinese company overseeing the project, Harbin Electric International Company Limited (HEI), has issued a force majeure notification, citing grave concerns about the security situation in Pakistan. The incident has not only halted the project’s progress but has also raised fears among foreign enterprises regarding the safety of their personnel in the region.

Yu Hong, the Project Manager for the 765 kV Transmission Line Project Lot-2, highlighted the negative impact of the attack on site progress, potentially leading to further delays or even a complete suspension of work. Concerns have been raised about the financial implications of the delay, as the project is already behind schedule according to agreements with the World Bank.

In response to HEI’s notification, Pakistani authorities are grappling with the aftermath. Foreign Minister Senator Ishaq Dar is expected to visit China to express solidarity and discuss the situation with his Chinese counterpart. Additionally, the Economic Affairs Division (EAD) has forwarded HEI’s letter to relevant ministries for necessary action and record-keeping.

The Chief Engineer/Project Director of Dasu has sought legal advice on how to proceed in light of HEI’s concerns, emphasizing the need to ensure smooth project execution and avoid further delays.

This setback underscores the challenges Pakistan faces in maintaining security for vital infrastructure projects and highlights the significant loss and failure in ensuring the safety of foreign workers and investment in the country.

SourceTBP

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