PPIB announced the financial closing of Pakistan’s largest Thar coal-fired power project, a monumental endeavor undertaken by M/s Shanghai Electric Corporation, China.
The Private Power and Infrastructure Board (PPIB) announced the financial closing of Pakistan’s largest Thar coal-fired power project, a monumental endeavor undertaken by M/s Shanghai Electric Corporation, China.
The official signing of the Financial Closing (FC) document took place in a ceremony attended by key figures, including Shah Jahan Mirza, Managing Director of PPIB, MengDonghai, Chief Executive of Thar Coal Block-1 Power Generation Company, and Mr. Zhou Bo, Chief Executive Officer of Industrial and Commercial Bank of China (ICBC), Karachi Branch. The presence of high-level officials from PPIB, Project Company, and sponsors added significance to the occasion.
Boasting an impressive generation capacity of 1,320 megawatts, the Shanghai project is a vital component of the China-Pakistan Economic Corridor (CPEC). Notably, the Project Company, undeterred by the challenges posed by the COVID-19 pandemic, commenced construction work and achieved completion on 5th February 2023, aligning with the stringent timelines set by the governments of Pakistan and China.
Shanghai Electric Group Corporation spearheads the project, with Sino Sindh Resources Limited (SSRL) serving as the coal supplier from Thar Block-1. The project’s financial backing comes from esteemed institutions, including 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, with Sinosure providing insurance coverage.
Employing state-of-the-art Super Critical Technology, the plant is equipped with the latest environmental compliance measures, meeting the standards set by the World Bank/IFC and Pakistan Environmental Protection Agency (EPA). Remarkably, this project emerges as the second most cost-effective power initiative, with a fuel cost of only Rs. 4.98 per kilowatt-hour (kWh). The operational phase of this project translates into substantial savings for the Government of Pakistan, reducing foreign exchange expenditure by approximately US $500 million annually.
Beyond financial savings, the Thar coal-fired power project significantly contributes to the reduction of the overall electricity basket price by an estimated Rs. 200 billion annually. The anticipated annual generation of 9 billion units of electricity promises to alleviate the energy deficit in the region, paving the way for sustainable economic growth.
This milestone achievement underscores the success of international collaborations, exemplifying the strength and resilience of partnerships in the face of global challenges. The completion of the Thar coal-fired power project not only bolsters Pakistan’s energy infrastructure but also sets a precedent for future initiatives under the ambit of CPEC.
The successful implementation of this mega-project serves as a testament to the commitment of all stakeholders involved and reaffirms the potential of clean and efficient energy solutions in powering the nation. As Pakistan continues to navigate its energy landscape, achievements like these propel the country towards a more sustainable and self-reliant energy future.