Thar Coal Block-I foundation stone laid
In a major step towards alleviating the province, and indeed the country's power crisis, Sindh Chief Minister Murad Ali Shah laid down the foundation stone of the Rs182.3 billion infrastructure project to provide water to the Thar coalfield.
Independent power producers (IPPs) have been working under a public-private partnership to generate around 1650 MW of coal-fired power in Thar Block-I.
The chief minister disclosed that this was the first-ever water delivery project launched in the country on a public-private partnership basis by attracting foreign direct investment (FDI).
The stone laying ceremony was organized at Nabirsar near Umerkot and was attended by PPP ministers, local leaders, Consul General of Kuwait Salim Yusif Al Hamdan, CEO of Kuwaiti Company Enter Tech Holding Company Abdulla Al Muttairi, CEO Enertech Water Private Ltd Yasser Malik, Pakistan Kuwait Investment Company Chairman Mohammad Al Fares, Chinese experts working on the project and local notables.
The Sindh government was looking for investment to start laying the groundwork for water infrastructure for IPPs in Thar Block-I, the chief minister said.
He added that a canal was required to be constructed from the Farsh X-regulator to Nabisar for the discharge of 200 cusecs of water.
Shah said that out of 200 cusecs, 45 cusecs would be supplied to IPPs of Thar Coal Block- I and the remaining 155 cusecs be provided to Nabirsar for agricultural purposes.
He added that considering the significant cost of the construction of a canal and the deadline set with the IPPs, the Sindh Cabinet decided to undertake this project through a PPP mode.
The CM said that a Kuwaiti Investment Company, M/s Enertech Water Pvt Ltd, taking interest in the project, submitted a proposal for the development and operation of the water supply facility.
Finally, the concession agreement was signed on June 26, 2021.
According to the project document, the Kuwaiti company is responsible for constructing a 60.7 km pipeline of 45 cusecs capacity from Nabisar to Vajihar, along with the building of two reservoirs with a capacity of 45 and 30 days at Nabisar and Vajihar, respectively.
The reservoir capacity has been enhanced to incorporate evaporation loss. Under the contract, the private partner has to establish a 4.8 MW power generation system for 48 cusecs pumping stations.
There would be two pumping stations with a maximum capacity of 60 cusecs. A water treatment system of 51 cusecs would also be established, comprising flocculation/clarification and filtration to attain the required water quality as has been proposed. It would also have a project control system (PCS).
Murad Ali Shah proudly said that the project's transaction structure has won global awards in two categories- the most Innovative Deal of the Year and Pakistan Deal of the Year'.
It also claimed a runner up in another category - Project & Infrastructure Finance Deal of the Year - from globally the reputed Islamic Finance News (IFN).
The Project is expected to generate revenue of Rs35 billion over its life for the Sindh government and it would constructed in one-year's time.
Media talk
Replying to a question, the chief minister said that his government had lodged a protest with the federal government against the unjust distribution of water.
"This is not a question of our [coalition] partnership in the federal government, but a question of our people's right to get their due share of water".
To a question about giving positions of administrators of KMC and Hyderabad to MQM, the CM said that talks between his government and the other party were in progress.
He added that a meeting for the purpose was held on Friday. "Let us see what decisions are taken and the same will be shared with the media".
Shah said that the agreement inked with MQM was an open document and nothing has been made secret.
Minister of Energy Imtiaz Shaikh, speaking on the occasion, lauded the efforts of the chief minister to materialize the project.
He added that 8 MTs of coal would be excavated from Thar Block-I for generation of 1650 MW of power.
Imtiaz Shaikh recalled that Shaheed Mohterma Benazir Bhutto, foreseeing the future of Thar coal, said that it will change Pakistan.
"Today, her prediction has come true".
Sindh Irrigation Minister Jam Khan Shoro, addressing the ceremony, said that the people of Nabirsar have been demanding a water scheme.
"Today, the PPP government is meeting the demand by constructing a canal from Makhi regulator to Baisar so that local people can use the water for drinking and agricultural purposes," he said.
The minister continued that added simultaneously, water through a pipeline would be supplied to Thar Block-I for power generation.
Forest Minister Taimur Khan Talpur said that under the guidance of the PPP leadership, the Sindh government has not only served the people of Sindh, but contributed in national flagship projects.
He appreciated the vision of the party leadership and hard work of the Sindh chief minister.
Enter Tech Holding Company CEO Abdulla Al Mutairi, speaking on the occasion, said that he was keen to further strengthen his partnership with the Sindh government by bringing in more investment.
Appreciating Sindh chief minister Syed Murad Ali Shah, Muttairi said Shah is a man of his word.
"Whatever commitment he made with us has been fulfilled in time."
Earlier, the chief minister, along with Abdulla Al Mutairi, performed a groundbreaking ceremony and then unveiled the plaque of the foundation stone.