| Karachi: The Private Power and Infrastructure Board (PPIB), acting as the federal government’s one-window facility, has announced the successful financial closing of Pakistan’s largest Thar coal-fired power project, securing an impressive USD 2 billion, according to news published on December 14.
Read: PM to inaugurate two Thar-coal power projects soon
Developed by China’s Shanghai Electric Corporation, the project is located in Thar and boasts a substantial generation capacity of 1,320MW. This significant milestone is part of the broader framework of the China-Pakistan Economic Corridor (CPEC).
As per the details, the formal financial close agreement was signed by PPIB Managing Director Shah Jahan Mirza Chief Executive of the project company Meng Donghai, and Industrial and Commercial Bank of China (ICBC) Karachi Chief Executive Officer (CEO) Zhou Bo.
Despite the challenges presented by the Covid-19 pandemic, the project, sponsored primarily by Shanghai Electric Group Corporation, successfully initiated construction, and concluded the project on February 5 2023, adhering to strict timelines set by the governments of Pakistan and China.
Employing state-of-the-art supercritical technology, the Thar power plant complies with environmental standards set by the World Bank, International Finance Corporation (IFC), and Pakistan Environmental Protection Agency. Notably, the project claims the position of the second-cheapest power project in terms of fuel cost, standing at PKR 4.98/kWh.
Read: Directives issued to amend tax laws for supplying Thar Coal to industry
Beyond contributing significantly to reducing the overall basket price of electricity, estimated at around PKR 200 billion annually, the Thar power plant is expected to save approximately USD 500 million in foreign exchange each year. Anticipated to generate nine billion units of electricity annually, this successful financial close marks a substantial increase in indigenous fuel-based power generation, bringing the total installed capacity of five commissioned Thar coal-based power projects to 3,300MW. |
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