In January 2008, Pakistan Electric Power Company (PEPCO) signed a Rs. 23 billion ($329 million) contract with Dong Fang Electric Corporation of China to construct the Nandipur Power Project and paid it a 10 per cent down payment. By mid-2010, much of the work at this power project was complete and it was expected be finished on schedule in April 2011. However, the project suffered delays as the summary, sent by the Ministry of Water and Power for legal opinion of the Ministry of Law & Justice, remained pending with the latter for two years from March 2010 to March 2012. As a result, machinery worth $85 million remained stuck at the Karachi Port for over two years. In September 2012, the president of Dongfang Electric Corporation Zhang Guorong terminated the contract for the construction of the Nandipur power project, saying his company had suffered colossal losses because machinery worth $85 million had been awaiting clearance at the Karachi Port. The company also demanded $40 million as compensation for losses suffered because of depreciation and damages on machinery stranded at the Karachi Port for the two years.
In June 2013, Pakistan’s Ministry of Water and Power started renegotiating the contract with Dongfang Electric Corporation to resume work on the Nandipur Power Project. After days of negotiations, the firm agreed to resume work on the power station. On July 8, 2013 engineers of Dongfang Electric Corporation arrived in Karachi to inspect the machinery lying at the Karachi Port and secure its release. Later, work on the Project was restarted.
The cost of project was reported to have risen from Rs. 23 billion ($329 million) to Rs. 57.38 billion ($574 million