NTDC submits PC-1 for Thar coal transmission line

KARACHI: The 14th meeting of Thar Coal and Energy Board was informed on Saturday that National Transmission and Distribution Company (NTDC) has completed PC-1 for laying of transmission line from Thar to Matiari, at the cost of Rs20 billion with detailed technical designs and submitted to the Planning Commission.

The meeting chaired by Sindh Chief Minster Syed Qaim Ali Shah, was also told that Sindh Governemnt was financing and executing development of infrastructure projects like roads, water supply, waste water disposal, airport and reverse osmosis plants for potable water for local people and project developers on fast track basis.

Federal Minister for Water and Power Syed Naveed Qamar, provincial minister Syed Murad Ali Shah and MNA Mrs Rubina Saadat Qaimkhani and senior government officials were also present on the occasion.

Chief Minister Sindh while welcoming the participants of the meeting said the government was fully committed for development of Thar Coal which has the potential of turning the country's economy around.

Thar coal resources can be used for power generation, chemical production and other uses and has the potential of providing energy security to the country, he added.

Secretary Coal and Energy Development Department and managing director Thar Coal and Energy Board Mohammad Younus Dagha briefed the forum about infrastructure development at the field.

He also informed that NTDC has completed the PC-I at the cost of Rs20 billion with detailed technical designs and submitted to the Planning Commission.

He pointed out that the federal government has been requested to arrange funding for this critical project either from PSDP or from international lenders like Asian Development Bank, China Development Bank or Japan International Cooperation Agency.

Speaking on the occasion, Federal Minister for Water and Power assured the forum that the project of transmission line will be expedited.

Imtiaz Qazi, Secretary Water and Power gave update on the project financing through Pak-China Joint Energy Working Group and informed that the next meeting will be held in March 2012. The group will likely finalize financial assistance for Thar Block II Coal Mining and Power Project of Sindh Engro Coal Mining Company during its upcoming meeting, he added.

Chairman Sindh Board of Investment Zubair Motiwala while briefing the board about the process of the third international competitive bidding said that four companies China Three Gorges Corporation, Thar Coal and Power Consortia, Tae Ryun Co. Ltd., and Australasian Continental Energy (Pvt.) Ltd., had submitted proposals for coal mining and power generation projects in Thar.

Besides these companies, a US-based consortium Thar Pak also submitted a proposal to develop coal-based projects in Thar. He further briefed the forum about proposed projects of all companies and their technical/financial strength.

On the recommendations of the Evaluation Committee, the Thar Coal and Energy Board has approved the allocation of Block IV of Thar coalfield to China Three Gorges Corporation, which will develop open pit mine of 20 million ton per year and mine-mouth power plant of 3,000 megawatts in two phases. In the first phase by 2016, they will develop 10 million ton per year mine and power plant of 1,500 MW.

Shahrukh Khan, Chief Executive Officer of Oracle Coalfields, UK presented its detailed feasibility study for coal mining and power generation project at Block VI of Thar Coalfield.

Oracle Coalfields, UK is investing $610 million for a coal mine of 5 millon ton per year capacity. Oracle has also signed an MOU with KESC to develop initially a 300MW mine-mouth power plant with plans to develop up to 1100MW at the Block VI site.

Initial coal production is expected in 2014 with mine development to be started by end of 2012. The board appreciated the work of Oracle Coalfields and assured them the government's support.

Dr. Samar Mubarakmand, Chairman Underground Coal Gasification Project briefed the TCEB about the progress of its R & D Project of Underground Coal Gasification at Block V of Thar Coalfield and informed that Syn Gas of 130 Btu is being produced from Thar, which may be used for power generation and can also be used as town gas.

The board decided that an international Expression of Interest (EoI) should be called by the Private Power Infrastructure Board and Thar Coal and Energy Board to attract the private sector for installing UCG-based power plant and for other possible uses of Syn Gas.