The Private Power and Infrastructure Board (PPIB) announced the financial closing of Pakistan’s largest Thar coal-fired power project by Shanghai Electric Corporation, China. The project, generating 1,320 MW, was a part of the China- Pakistan Economic Corridor (CPEC).
It began construction during the COVID-19 pandemic and was completed in February 2023. The project, sponsored by Shanghai Electric Group Corporation, sources coal from Sino Sindh Resources Limited. 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.
Several Chinese banks are involved as lenders, and the plant meets stringent environmental standards. It’s the second cheapest power project (Rs. 4.98/kWh), saving Pakistan around $500 million in foreign exchange annually and contributing significantly to reducing the overall electricity price by an estimated Rs. 200 billion per year, expected to generate 9 billion units of electricity annually.
