Pakistan’s K-Electric has signed a binding joint development agreement (JDA) with China Datang Overseas Investment Corporation (CDTO) and China Machinery Engineering Corporation (CMEC) to develop a 700 MW coal-fired power plant at Port Qasim, Pakistan.

The agreement for the $1 billion power plant follows a non-binding JDA signed by the three parties in January 2015 and is a "substantial step" forwards in the execution of the project, K-Power said.

The 2 x 350 MW power plant will help Pakistan to reduce the costs of fuel imports and will also help the country meet growing energy demand. "It gives us immense pleasure to join hands with companies like CDTO and CMEC for the development of this project of critical importance," said K-Electric CEO Tayyab Tareen. "This particular project will go a long way in addressing the power needs of the country, specifically the people of Karachi."