ISLAMABAD, June 7: Pakistan plans to re-negotiate its agreement with Consolidated Electric Power Asia (CEPA) to set up a power plant and develop a sea port, a government official said.

The official said that Pakistan had decided to re-negotiate the deal with CEPA, which was struck in June 1995 when Islamabad issued a letter Of support, enabling the power company to complete other formalities.

Hopewell Holdings Ltd holds a 20-per cent stake in Consolidated Electric Power Asia Ltd. US power giant Southern Co owns 80 per cent.

Under the agreement CEPA was to build eight 660-megawatt coal-based thermal power plants for a total cost of $5.5 billion in the southern province of Sindh.

The official said the Economic Coordination Committee of the cabinet decided to set up a committee headed by the secretary to the ministry of water and power to re-negotiate the letter of support with CEPA.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.