The documents for the financial closing of 330MW mine-mouth lignite coal power project at Thar Block-II were signed by Managing Director of Private Power & Infrastructure Board (PPIB) Shah Jahan Mirza and Thar Energy Ltd (TEL) chief executive Saleemullah Memon. Energy Minister Omar Ayub Khan was also present on the occasion.
The project will be jointly sponsored by Hub Power Company Ltd (Hubco), Fauji Fertiliser Ltd (FFL) and China Machinery and Engineering Corporation (CMEC). The total cost of the project is $497m.
The China Development Bank (CDB) is the lead arranger of foreign financing from China while Habib Bank Ltd (HBL) is the lead arrangement for local financing.
The project will utilize Thar coal supplied by Sindh Engro Coal Mining Company (SECMC) from its second phase mine and after implementation of this project overall coal price (SECMC) would be reduced from $64/ton to $44/ton, which will significantly reduce the power tariff by cents 1.6/KWh (ie, around Rs 2/KWh) ie around Rs2 per unit. The project will be connected with the Matiari-Lahore Transmission Line for transmission of electricity.