Thar coal-power project secures financing

Project of 330MW is expected to be completed by March 2021

ISLAMABAD: In a major move, a 330-megawatt Thar coal-based power project achieved financial close on Thursday and its completion would add to Pakistan’s energy production and lead to foreign exchange savings for the country.

Private Power and Infrastructure Board (PPIB) Managing Director Shah Jahan Mirza and Thar Energy Limited Chief Executive Officer Saleemullah Memon signed the financial close documents for the 330MW mine-mouth lignite coal-power project at Thar block-II.

Welcoming the development, Power Minister Omar Ayub Khan emphasised that the addition of 330MW would further energise the national grid and contribute to the sustainability and reliability in the power sector.

“In the quest for harnessing the domestic and renewable energy potential, every single megawatt is crucial for redefining Pakistan’s energy landscape and securing its future, which will eventually end Pakistan’s dependence on imported fuels,” he added.

Earlier, the implementation agreement for the 330MW project was inked on November 10, 2017. It is jointly sponsored by Hub Power Company, Fauji Fertiliser and China Machinery and Engineering Corporation under the China-Pakistan Economic Corridor (CPEC) framework. Total cost of the project is $497 million while China Development Bank and HBL are the lead financiers. The project will utilise Thar coal from Sindh Engro Coal Mining Company (SECMC).

Published in The Express Tribune, January 31^st, 2020.

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