17 October 2004	Sunday	02 Ramazan 1425

KARACHI, Oct 16: Sindh Minister for Mines and Mineral Development Irfanullah Khan Marwat has said that the tariff of electricity to be generated by the Thar Coal Power Project would be decided at a meeting to be held next week under the chairmanship of Prime Minister Shaukat Aziz.

Speaking at a press conference at the New Sindh Secretariat here on Saturday, Mr Marwat, who was flanked by Secretary Mines Hameed Akhund, said that coalmine construction work for the project would be started by November next year and the first unit of the power plant would start commercial operation in about four years. The second unit would follow suit six months later, he added.

Mr Marwat led an eight-member delegation which has just returned from China.

In reply to a question, the minister said that Pakistan had assured China of all possible security to be provided to the Chinese citizens working in Pakistan. Extraordinary measures were being taken in this regard, he added.

The minister said that with the launching of the project, as many as 10,000 people would get jobs in the initial phase.

"There are 176 billion tonnes of coal reserves in Thar. The deposits have been divided into four blocks. While a Chinese firm is preparing feasibility of the first block, that of the second block is with a German firm,"he informed newsmen.

In reply to another question, Mr Marwat said that the Chinese firm, Shenhua Group, was supposed to complete its feasibility report by February next year and Pakistan had assured it of all necessary documentation within four months after receipt of the report.

He said that the Shenhua Group intended to start work on coalmines construction within nine months after getting an approval from the Chinese government.

He said that the group had sought exemption in levies on the machinery, equipment and material to be used in the construction of the project in order to ensure a reduced capital investment and tariff.

The Thar Coal Power Project, in which coal-fired power plants are to be installed, would produce up to 600 MW electricity and cost US$500 million.

The main objective is to develop indigenous resources to produce cheaper energy and attain economic and social uplift of the poor people of Thar.

On an initiative by President Musharraf, an agreement between Pakistan government and the Chinese firm was signed for the development of Thar coal. A memorandum of understanding (MoU) was also inked for setting up two 300 MW coal-fired power plants.

Under the agreement, the lease period of the project would be 25 to 30 years and after which all the assets would be transferred to the Sindh government.

The project, a commercial venture, would initially generate 300 MW power and later the output would be raised to 600 MW by adding another plant of the same capacity. The government plans to further enhance its capacity up to 3,000 MW.

The project would also generate Rs60-70 million revenues a year as royalty for the provincial exchequer.

The minister said the infrastructure was being developed for which an amount of Rs1 billion had already been granted by the federal government. A matching grant would be made available by the Sindh government prior to the earth-breaking of the project, he added.

He said that the road between Jamshoro and Thatta would be upgraded and extended to lead to the coalmines head to meet the requirement with regard to the transportation of equipment weighing up to 400 tonnes.