Thar project: Engro plans investment of $21.3 million

Engro Energy, Siddiqsons ltd and Arif Habib Equity Ltd have entered into a joint venture for the project

KARACHI: Engro Energy has planned to invest $21.4 million by way of subscription of ordinary shares in Siddiqsons Energy Limited, a Special Purpose Vehicle (SPV), to set up 330MW Thar coal-fired power generation facility.

According to a notice by Engro Corporation on the Pakistan Stock Exchange, the Board of Directors of Engro Energy Limited has approved the said investment to develop approximately 330 megawatt of Thar coal-fired power generation facility in Block II, district Tharparkar on a build, operate and own basis.

Engro Energy, Siddiqsons limited and Arif Habib Equity Limited have entered into a joint venture for the project.

Engro Energy has also entered into a Project Management Agreement with the SPV, whereby the project undertaken by the SPV, will be managed by Engro Energy.

According to Insight Securities’ research head Zeeshan Afzal, coal-based power generation facility generally use imports but this would be using Thar coal, which will certainly be good for the company.

Published in The Express Tribune, May 8^th, 2018.

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