Thar coal: Sindh govt, SECMC sign agreement
PHOTO: FILE
The Sindh government has signed an implementation agreement with Sindh Engro Coal Mining Company (SECMC). Under the agreement, the government will commit to provide the entire infrastructure required to facilitate the mining project amounting to $600 million (Rs60 billion).
Sindh Government has also inked a water utilisation agreement with Engro Powergen Thar Limited (EPTL), said a statement issued by SECMC.
Under this tripartite agreement, the Thar Power Company, a subsidiary of SECMC, will be responsible to operate and maintain the infrastructure facilities whereas Sindh Government’s Irrigation and Energy Departments will ensure the allocation of 17.5 cusecs of treated water for the functioning of EPTL’s power project in Block II.
The associated power plant being established by EPTL is also near to achieving financial close with the signing of the water utilisation agreement with Sindh government.
The joint venture agreement, under which SECMC was formed, provides Sindh Government with majority shareholding in the company (51%) and responsibility for the provision of key infrastructure.
Published in The Express Tribune, November 20th, 2015.