PID

PR No.235 SECURITY PACKAGE AGREEMENTS FOR TWO 1650 MW COAL BASE POWER PROJECTS SIGNED Islamabad: January 25, 2017

The implementation agreements (IAs) of two coal based power generation projects totaling 1650 MW were singed 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 Thur Coal Power Project by M/S Thus 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 Agreement (PPAs) of both the projects were also signed. The Honourable Minister for Water & Power Khawaja Muhammad Asif, Secretary Water & Power, Senior Officers of Ministry of Water & Power and PPIB besides other high level officials representing the GOP and the projects witnessed the signings.

The 330 MW Power Project is based on Thur Coal being developed at Thur Block-II with an investment of around 495 million US dollors 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 dollors. Both Projects being pursued by the PPIB under the framework of China – Pakistan Economic Corridor (CPEC) have already been issued letters of sport and are at advanced stages of financial closer. The development pace, on both projects is satisfactory, hence it is anticipated that the 1320 MW Project is likely to start Generation by and 2018 while 330 MW Project by and 2019. Both the Projects have started construction activities from there on 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 Thur Coal on which the investors are being encouraged to setup Power Plants. Projects in Thur, 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 editions beyond that period for long term basis. The Minister also stated that the Coal Base Power Projects being established are utilizing latest supercritical technology which is being introduced first time in the country to address environmental constraints. All Projects required to get clearance from respective environmental protection agencies before their kick of.

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