PRIVATE POWER & INFRASTRUCTURE BOARD

 

GOVERNMENT OF PAKISTAN

MINISTRY OF WATER & POWER

   
  NEWS/EVENTS

 

SECURITY PACKAGE AGREEMENTS FOR

TWO 1650 MW COAL BASED POWER PROJECTS SIGNED
25-JAN-2017

ISLAMABAD, 25th January 2017: The Implementation Agreements (IAs) of two coal-based power generation projects totalling 1650 MW were signed today at Ministry of Water & Power for materializing the financing of around 2475 Million US$ as the cumulative Projects cost.  The IAs of 330 MW Thar Coal Power Project by M/s Thar Energy Limited (TEL) and 1320 MW Power Project by M/s China Power Hub Generation Company (Pvt) Ltd. (CPHGCL) were signed today. Simultaneously, the Power Purchase Agreements (PPAs) of both the projects were also signed. The Honorable Minister for Water & Power Khawaja Muhammad Asif, Secretary Water & Power, senior officers of Ministry of Water & Power and PPIB besides other high level officals representing the GoP and the Projects witnessed the signings.

 

The 330 MW Power Project is based on Thar Coal being developed at Thar Block-II with an investment of around 495 million US Dollars while 1320 MW Project is based on Imported Coal  which is being developed at Hub, Balochistan and will bring in investment of around 1980 million US Dollars. Both projects being pursued by the PPIB under the framework of China-Pakistan Economic Corrdior (CPEC) have already been issued Letters of Support and are at advanced stages of Financial Closure. The development pace on both projects is satisfactory, hence it is anticipated that the 1320 MW Project is likely to start generation by end 2018 while 330 MW Project by end 2019. Both the projects have started construction activities from their own equity.

 

The Minister for Water & Power while addressing the media stated that the GoP is giving priority to affordable generation through indigenous resources like coal and hydro. However, currently the most focused area is Thar Coal on which the investors are being encouraged to set up power plants. Projects in Thar, he added will bring prosperity to people of the area by opening new economic avenues. He said, while we are aiming to make available sufficient megawatts by 2018 to eliminate load shedding, we are also planning capacity additions beyond that period for long term basis. The Minister also stated that the coal based power projects being established are utilizing latest supercritical technology which is being introduced first time in the country to address environmental constraints. All projects are required to get clearance from respective environmental protection agencies before their kick off.

           

 

 

 
 
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