April 30, 2008	Wednesday	Rabi-us-Sani 23, 1429

KARACHI, April 29: The Sindh cabinet has decided to investigate alleged wrongdoings in the signing of memorandums of understanding for the Thar coal power project and take action against those responsible.

The cabinet decided in a meeting presided over by Chief Minister Qaim Ali Shah here on Tuesday to expedite implementation of the project with the help of the federal government to overcome the energy shortage.

Provincial Information Minister Shazia Marri said at a press conference that a presentation was given to the cabinet on the project which had been initiated in 1995-6. She said no serious steps had been taken to implement it.

She said that when late prime minister Benazir Bhutto had taken the initiative the cost of the project was estimated at $8 million. If completed it would have been generating 5,000 megawatts of electricity.

Ms Marri said several MoUs signed between 2002 and 2006 had failed and the funds spent on visits and signings had gone waste.

The minister alleged that one of the MoUs had been signed with a company that did not exist -- Sonehri Private Ltd.

She said the provincial assembly had not been informed about the accords.

Stressing the need for exploiting coal reserves, particularly in Sindh, to meet the urgent energy requirement, the minister said Indonesia generated 93 per cent of its electricity from coal, China 78 per cent, Morocco 69 per cent and India 69 per cent.

She said Pakistan generated only one per cent of its electricity from coal although its reserves could last about 100 years.

She said the coal power project would be of benefit to the people of Sindh also because it would create jobs.

She said the federal government’s help would be sought for financing the project.

In reply to a question, the minister said an MoU had been signed with the Shenhua Group of China for two 300MW coal-fired plants and a comprehensive report on the project had been prepared in August 2004.

However, the company withdrew its offer because it had demanded a tariff of 5.75cents/kWH but the National Electric Power Regulatory Authority was not ready to allow more than 5.34cents.