PR No.189 Visit Of Ministry Of Water And Power, Government Of Pakistan Delegation To Indonesia Islamabad

A delegation of Ministry of Water and Power, Government of Pakistan, led by Secretary, Mr. Muhammad Younus Dagha has arrived in Jakarta on 23rd February 2016 to look into possibility of procuring coal from Indonesia for coal-fired power generation projects in Pakistan. A pre bid Conference was held at a hotel in Jakarta on 24th February 2016, which was attended by Indonesian Coal Suppliers and Indonesian Coal Mining Association. Mr. Muhammad Younus Dagha welcomed the Indonesian companies to the Conference and informed that Pakistan is constructing four coal fired power plants of over 1000 MW each, which will be completed by end of 2017 and expressed interest in import Indonesian mid CV coal of 4600 to 6000 Kcal/Kg to generate power. The participants were informed that one power plant is government owned and three are owned by private sector. He further said that Pakistan would require 15-20 million tons of coal from Indonesia annually once plants become operational. Mr. Dagha was of the view that since Indonesia is the largest exporter of mid CV coal in the world and is a brotherly country, Pakistan expects Indonesian companies to not only supply coal but also help Pakistan in developing Thar coal reserves and invest in Thar Coal, says a press release received here today from Jakarta.

The pre bid conference has been arranged to procure coal for1320 MW, government owned Jamshoro Power Plant, funded by the World Bank and Islamic Development Bank. The CEO of Jamshoro Power Company Limited, Engr. Iftikhar Aziz, provided details of the project. He informed Indonesian suppliers that 3.5 million tons of 4750 to 6000 kcal/ kg coal is needed from Indonesia annually for this plant alone for which ten suppliers will be shortlisted and Coal Supply Agreement will be signed with them. The last date of submission of bid to the Ministry of Water and Power, Government of Pakistan, Islamabad is 29th March 2016.

The delegation had meeting with Indonesian Coal Mining Association Executive Director Mr. Supriatna Suhala and Vice Chairman. Mr. Suhala said the total coal production in Indonesia is estimated at around 425 million tons per year but reduced demand from China had a major impact on the coal price which has plunged to US $ 50/ton. In 2015 , coal imports from China fell by 30 percent from last year. As a result of the low price, Indonesian coal miners have cut production volumes by about 20 percent. The new Pakistani market is a welcome news for Indonesia exporters and we will provide competitive rates to Pakistan. After the conference, Mr. Muhammad Younus Dagha, Secretary, Ministry of Water and Power visited Pakistan Embassy and exchanged views with Pakistan Ambassador, Mr. M. Aqil Nadeem regarding various aspects of coal import from Indonesia.