KARACHI: The Sindh government has signed an implementation agreement with the Sindh Engro Coal Mining Company and a water utilisation agreement with the Engro Powergen Thar Ltd (EPTL).

“Under the implementation agreement the government would commit to provide all required infrastructure to facilitate the mining project amounting to $600 million,” a statement said.

“Both agreements 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,” it added.

“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 utilising its indigenous energy resources while also bringing prosperity to the local people of Thar.

“The joint venture agreement under which SECMC was formed provides the Sindh government with majority shareholding in the company (51 per cent) 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 government’s 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 Thar Power Company, a subsidiary of the SECMC, will be responsible for operating and maintaining the infrastructure facilitation while the government of Sindh (irrigation and energy departments) will ensure the allocation of 17.5 cusecs of treated water for the functioning of EPTL power project in Block-II.

“Under the agreement, government of Sindh departments concerned will be responsible to construct water supply infrastructure from the LBOD to Nabisar whereas the EPTL will be responsible to establish the same after Vajihar.

“The agreement is a pivotal step for achieving financial closure for the EPTL power project as it secures the water sources for the functioning of the power plant,” the statement added.

Published in Dawn, November 20th, 2015