ISLAMABAD: The government signed implementation agreements on Thursday with two coal-based private power projects of 990 megawatts for commercial operations in 2021.
The agreements were signed between the Private Power & Infrastructure Board (PPIB) on behalf of the government, the 660MW Lucky Electric and the 330MW Siddiq Sons involving a total investment of $1.490 billion. The implementation agreement is the final stage to kick-start physical work and enable investors to achieve the financial closing.
Shah Jahan Mirza, Managing Director PPIB, signed the documents with Mohammad Asad, Project Director of M/S Lucky Electric Coal Project and Muhammad Abdul Vakil, Chief Operating Officer of M/S Siddiqsons Energy Coal Project. The parties had already signed power purchase agreements on Wednesday.
The 660 MW Lucky Electric Coal Project, being developed by Lucky Electric Power Company Ltd at Port Qasim, has an investment of $1.08bn while the 330MW Siddiqsons Energy Coal Project by M/S Siddiqsons Energy Ltd is located at Thar Block-II having an investment of $410 million.
Both projects will utilise Thar Coal supplied by Sindh Engro Coal Mining Company (SECMC), which is executing coal mining operations for coal extraction in the Thar coalfield, Block-II.
Letters of Support have already been issued to both projects by PPIB which are currently at advanced stages of achieving financial closure. It is anticipated that Lucky Electric Coal Project will start generation by March 2021 while Siddiqsons Energy Coal Project by June 2021.
Latest advancements by both projects are very crucial in achieving future milestones such as financial closing and start of construction activities, an official statement said. The addition of 990MW of affordable and reliable electricity will energise the national grid.
After overcoming the crisis of electricity, GoP is prioritising and encouraging power generation through indigenous coal and hydro besides renewable resources for achieving energy security. Exploration of Thar Coal is opening a new chapter in the energy history of Pakistan and PPIB has been quite successful in implementing seven Thar coal-based power projects of 5,000MW which are at different stages of development.
Published in Dawn, March 9th, 2018