Islamabad, November 19, 2015 (PPI-OT):Another important milestone is achieved for the both mining and associated power plant activities in Thar Coal Block II as the Government of Sindh signs Implementation Agreement with Sindh Engro Coal Mining Company and Water Utilization Agreement with Engro Powergen Thar Limited. Under the Implementation Agreement with Sindh Engro Coal Mining Company, the Government will commit to provide all required infrastructure to facilitate the mining Project amounting to US$ 600 million (PKR 60 billion).
The Joint Venture Agreement under which SECMC was formed provides the Government of Sindh with majority shareholding in the company (51%) and responsibility for the provision of key infrastructure such as road networks, airport facilities, water supply scheme, effluent disposal scheme as well as all required security for expatriate employees who are expected to arrive in the area early next year.
The signing of this agreement represents the Provincial Governments’ continuous support in expediting the timely execution of the Thar Coal Project and furthers its resolve to encourage economic prosperity in the country by facilitating the requirements of investors for the financial close of SECMC’s mining Project.
The associated power plant being established by Engro Powergen Thar Limited (EPTL) is also nearer to achieving financial close with the signing of the Water Utilization Agreement with the Government of Sindh. Under this tripartite agreement, the Thar Power Company, a subsidiary of SECMC, will be responsible to operate and maintain the infrastructure facilitation while the Government of Sindh (Irrigation Department and Energy Department) will ensure the allocation of 17.5 cusecs of treated water for the functioning of EPTL’s power project in Block 2.
Under the agreement, concerned GoS departments will be responsible to construct water supply infrastructure from the LBOD to Nabisar whereas EPTL will be responsible to establish the same after Vajihar. The agreement is a pivotal step for achieving financial closure for EPTL’s power project as it secures the water source for the functioning of the power plant.
Both agreements signed today mark the start of an era which will usher in energy security and economic prosperity for Pakistan as both mining and power projects move closer to financial close which is expected by the end of the year. These agreements will allay the concerns of Chinese investors, with whom both companies have been in negotiations for securing financing for the mining and power projects. The Project will prove to be a game changer, providing a sustainable energy landscape for Pakistan by utilizing its indigenous energy resources whilst also bringing prosperity to the local people of Thar.
For more information, contact:
Sindh Engro Coal Mining Company (SECMC)
8th Floor, Harbor Front Building,
Marine Drive, Block 4, Clifton,