ISLAMABAD: The Private Power and Infrastructure Board (PPIB) on Wednesday announced financial closing of the country’s largest Thar coal-fired power project by M/s Shanghai Electric Corporation, China.
The FC document was signed by Shah Jahan Mirza, Managing Director, PPIB, MengDonghai, Chief Executive of the Project Company, ie, Thar Coal Block-1 Power Generation Company and Mr. Zhou Bo, Chief Executive Officer of Industrial and Commercial Bank of China (ICBC), Karachi Branch. Other high-level officials of PPIB and Project Company/Sponsors were also present.
Having the generation capacity of 1,320 MW, Shanghai project has been implemented under the China-Pakistan Economic Corridor (CPEC). It is commendable that in order to meet stringent timelines agreed by the Government of Pakistan and Government of China, the Project Company commenced construction work in a crunch situation of COVID-19 by leveraging its equity and bridge financing and completed the project on 5th February 2023.
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Shanghai Electric Group Corporation is sponsoring the project, while Sino Sindh Resources Limited (SSRL) is the coal supplier from Thar Block-1 whereas Industrial and Commercial Bank of China (ICBC), China Development Bank, Bank of Communications Co Ltd, China Minsheng Bank Corporation, Postal Savings Bank of China Co, Ltd., and Agriculture Bank of China are the lenders of Project while Sinosure is the insurer of the project.
The plant is based on state of the art Super Critical Technology and is equipped with latest equipment to fulfill environmental obligations and fully compliant with the World Bank/IFC and Pakistan EPA standards. This project is the second cheapest power project from the fuel cost point of view (i.e. Rs. 4.98/kWh). By its operation, the GoP saves precious foreign exchange of around US 500 million Dollars annually.
Further, this project significantly contributed in reducing the overall basket price of electricity which may be translated to around Rs. 200 billion annually while expected to generate 9 billion units of electricity per year.
Copyright Business Recorder, 2023