March 1, 2003	Saturday	Zul Hijjah 27, 1423

BEIJING, Feb 28: China and Pakistan signed an agreement here to establish two coal-based 600-megawatt power plants in Sindh. Sindh Chief Secretary K.B Rind signed the agreement, which lays down necessary framework and modalities for undertaking the project.

President of Chinese Company (Shenhua Group) Chen Biting represented his country. Pakistan Ambassador to China Riaz Muhammad Khan was also present at the signing ceremony held Friday at Pakistan House.

The project will be carried out on “Build-Operate-Own” (BOO) basis. A formal contract to this effect will be signed soon. The company is likely to invest $300 to $400 million to develop Thar coalfields and produce electricity. It will provide the country a cheap alternate source of energy.

Initially, a pilot project to establish two power plants, each 300-megawatt will be started. Later, it would be extended to produce 3000 megawatt electricity daily.

The company officials told APP they have already concluded geological study at the site, spreads over 50 square km. The study proved that Thar field envisages enormous coal deposits, which could be easily developed to produce electricity.

However, the company after receiving necessary technical data from Pakistani side will undertake another feasibility study to decide some other related issues and to evaluate the total cost of the project. This study would be completed within a period of six to eight months.

The officials said the company is determined to undertake the power-generating project as soon as possible, since it involves a strong commitment between the two governments.

Speaking on the occasion, Ambassador Riaz Muhammad Khan said the Sino-Pakistan cooperation in development of Thar coalfield would be another symbol of their deep-rooted friendship.

He said the Pakistan government and President Pervez Musharraf himself attach great importance to this project.

He assured that the company would by extended all possible support by the concerned departments and the embassy for smooth operation of the project.—APP