Another Thar Coal based power generation project has
achieved financial close in a ceremony at Private Power and Infrastructure
Board (PPIB). Financial Closing documents for the 330 MW mine mouth lignite
coal power project at Thar Block-II were signed by Mr. Shah Jahan Mirza,
Managing Director PPIB and Mr. Saleemullah Memon, Chief Executive Officer of
M/s Thal Limited while senior officials of PPIB and the company witnessed
the signing. The Project is being sponsored by M/s Thal
Limited, M/s Novatex Limited and M/s Descon Engineering Limited under the
banner of China-Pakistan Economic Corridor (CPEC) program. Total cost of the
project is US$ 497 million while China Development Bank (CDB)is the
lead arranger for the foreign financing from China and Habib Bank Limited is
the lead arranger for the local financing.
The plant will be fuelled by coal extracted from Thar
Block II by the Sindh Engro Coal Mining Company and it
will utilize 1.9 million tons of coal to generate 2236 GWh per annum. The
Sponsors have already started construction
activities ahead of Financial Closing and are very keen to complete this
project by March 2021. After start of Commercial
Operation of this project, billions of rupees would be saved per year on
account of Foreign Exchange and this saving will further escalate when all
Thar coal based projects of 5,000 MW would be operational thus drastically
reducing the tariff due to use of indigenous coal.
The plant will be connected with the
Matiari-Lahore Transmission Line for transmission of electricity.
Being developed on state of the art coal technology, the project complies
with all international as well as federal and provincial environmental
standards. The development of this project will
also contribute in socio-economic uplift of backward Tharparkar area which
is now emerging as the energy capital of Pakistan.
For giving boost to the utilization
of indigenous resources for power generation in line with the vision of the
present government, PPIB in addition to Thar coal based power generation is
also handling 14 hydropower projects (HPPs) of 6,175 MW in the private
sector. These HPPs are at different stages of implementation. By 2022, PPIB
is targeting to fetch another 5,500 MW through completion of ten projects
majority of which are based on Thar coal and hydro. PPIB is also
implementing Pakistanís first private sector +660 kV Matiari-Lahore
Transmission Line Project which is also the first HVDC project aiming to
transmit electricity from coal projects in the southern zone to the load
centers. This project is also under construction and targeted to be
completed by March 2021.