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Implementation agreement of 1,320 mw Thar coal-based power generation project signed

Dec 16, 2019: The Implementation Agreement (IA) of 1,320 mw Thar coal-based power generation project has been signed at Private Power and Infrastructure Board (PPIB) for materializing the financing the project having cumulative cost of $ 1,912.2 million.

Minister for Energy Omar Ayub Khan, who is also the Chairman of PPIB has appreciated PPIB’s efforts to expedite processing of indigenous fuel.

Shah Jahan Mirza, Managing Director PPIB and Meng Donghai, Chief Executive Officer of M/s Thar Coal Block-I Power Generation Company Limited (TCB-I) signed the documents, said a press release.

The 1,320 mw Shanghai Electric Thar Block-1 Coal Project was being developed under the umbrella of China-Pakistan Economic Corridor (CPEC) through Project Company TCB-I while M/s Shanghai Electric Group Company was the main sponsor of this project.

The project would utilize Thar Coal supplied by Sino Sindh Resources Limited which was executing coal mining operations for coal extraction in the Thar coalfield Block-I. Letter of Support has already been issued to the project by PPIB while Financial Closing was expected to be achieved very soon. It is anticipated that Shanghai Electric Thar Block-1 Coal Project will start generating electricity in March 2021.

Latest advancements by this project would pave the way for timely commissioning of the Project. The project would be connected with the 660 +kV Matiari-Lahore HVDC Transmission Line Project for power transmission. This transmission line project was also being implemented by PPIB under CPEC which was currently under construction and targeted to be operational by March 2021.

The addition of 1,320 MW indigenous, affordable and reliable electricity would energise the national grid and help savings foreign exchange of around Rs 75 billion annually on account of Fuel Cost, besides generating economic activities and employment opportunities for the people of Thar. This will boost the confidence of the investors, who were interested in Thar coal mining and power generation.

Speaking at the occasion, the Managing Director PPIB Shah Jahan Mirza said that PPIB was acting as the lead organization in developing indigenous resources like Thar coal and hydro for power generation and achieved considerable success which include commissioning of Pakistan’s first Thar coal based 660 MW Engro Powergen and two hydro IPPs namely 84 MW New Bong and 147 MW Patrind. Exploration of Thar Coal was opening a new chapter in the energy history of Pakistan and PPIB has been quite successful in implementing another six Thar coal based power projects of 4,290 MW which were at different stages of development, he added.

APP

Posted on: 2019-12-16T16:11:00+05:00

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