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ISLAMABAD: The state council of the People's Republic of China granted approval for an investment of $1.2 billion in the surface mining of Thar coal and the establishment of 660 MW power projects, as part of the China-Pakistan Economic Corridor project (CPEC).
The final lending documents in this regard will be signed on December 21 in Beijing.
According to details shared on Wednesday, China's state council for financing gave final nod for establishment of 660 MW Power Plant on indigenous coal in Thar Block-II and the surface mining of 3.8 MTPA (million tonnes per annum of Thar coal.
Earlier, in October, the Chinese government had agreed to increase the financing of Thar Coal project to double the generation capacity of Thar Block-II from 660 to 1,320MW, and to add project capacity and increase the mine size from 3.8 to 6.5 million tonnes per annum as part of the priority list of CPEC projects.
In a letter addressing Secretary Ministry of Water and Power Muhammad Younus Dagha, the Chinese side confirmed the approval of financing of mega project by China's state council.
Sinosure in collaboration with Sindh Engro Mining Company are jointly undertaking Surface Mining of 3.8 MTPA and establishment of 660 MW Power Plan projects in Thar Block-II which is part of China Pakistan Economic Corridor (CPEC) projects.
According to the ministry, reaching this stage of collaboration is considered as a major achievement in shortest time.
Arrangement of finances and completion of lending documents is the most critical part in any project which signifies starting of actual work on the projects.
This project was on the government's priority list which helped it reach the advanced stage among other CPEC mega projects, after signing of CPEC energy projects agreement in November, 2014.
It is worthy to mention that due to tireless efforts of Ministry of Water and Power and NEA China, all the regulatory requirements have been completed in one year's time.
Thar Coal has remained on agenda of every government, however, practical steps have been taken by the Ministry for first time since present government focused on tapping potential to its fullest.
Comments (22) Closed
Well done Nawaz Sharif
All good except coal is not the cleanest of energy. However desperate times require desperate measures. The country is short of electricity and it is expensive burning oil.
count down to being called a developed nation.
God bless Pakistan!
Great News
What is the lending interest rates? Hopefully we will know on 21st.
@bk .... The fastest road to becoming a developed nation is universal secondary education. There are no shortcuts.
Very good news for short term. Hopefully our people will learn to work together and more tolerant to each others. Inshallah then we will become a nation that gives loans.
The credit goes to PMLn. Had PMLn won in 2008 we would not have had any electricity shortfall today.
why is this being done? why was india not taken into confidence? what are the interest terms? was their independent bidding done? why is Pakistan befriending china? it does not have any cultural affinity to them? India has better coal plants at cheaper rates..............
Watch on the internet that MOLTEN SALT THORIUM REACTOR can produce safe nuclear energy and can save the planet as THORIUM is ABUNDANT in sands and also in the rare earth mining for Neodymium and Samarium for MAGNETS.
@Ash20 good question but I think they have sold the mine with thd hope to provide jobs
Please people don't call it a achievement or developed nation. Where in other parts people are getting there grocery through drone and electricity is a basic thing such as water. It is nothing about developed nation but a shame that in 2015 we are making efforts to light pakistan.
What are the interest rates?
Dont know it is good news or Bad news after seeing the pollution of Beijing . The city which is importing fresh bottle air from Canada now.
One wonders what is the true 'cost' of this capital.
Whole world is doing coal mining for two centuries. We still need help from China that task. When we would learn to do things on our own?
Nice to see all these projects coming to fruition. Have to say that we are certainly seeing a big upswing in development in the country and its palpable just by driving around the national highways. Great job!!
Why could not Pak do this?
This is great, another feather in present Government's hat. Pakistan definitely back on track !
Great job PMLN.
I hope we are very careful. I use to work in USA super critical power plant. I think chinese are trying to use Pakistan as a testing ground to improve this technology. This type of plant needs extreme care and maintenance.