KARACHI, Nov 21: The Sindh government and Turkey’s Sanko Holding AS and Teyo AS signed a memorandum of understanding (MoU) on Thursday for the development of Thar coal and production of 200MW to 10,000MW electricity in phases.

The MoU on behalf of the Sindh government was signed by Director General Sindh Board of Investment Muhammad Riazuddin. The two Turkish companies were represented by Sanko Holding President Abdullkadir Konukoglu and Vice President Zekeriye Konukoglu and Teyo AS President Ferudun Korkmaz.

Under the MoU, the Turkish companies will participate in Thar Coal Award process, arrange 100 per cent project financing and provide such information as to assist the Sindh government to receive land, letter of credit, and implementation agreement. The two companies will ensure to obtain financial close on or before December 31, 2014. They will implement the project in four years from the date of achieving financial close of the project while engineering and construction work for mining shall start on or before Dec 31, 2014 whereas the government to facilitate all permits and consents including land acquisition, mining license for Thar coal blocks, implementation agreement of concession from the government, semi government and non-government organizations.

Talking to the media after the ceremony, Sindh Chief Minister Syed Qaim Ali Shah said the province needs to develop its energy sector, coal mining and textiles industries for domestic consumption, export and economic wellbeing.