After entrance of Chinese Companies in Thar Coal project with investment of over $9 billion through the recently signed Memorandum of Understandings (MoUs) with government of Sindh, Japanese and Korean firms have also shown interest in this important project. This, while talking to Profit, was said by Mohammad Younus Dagha, Secretary Sindh Coal and Energy department.
In recent negotiations with Japanese Ambassador, he claimed, government of Japan has also committed to invest in the project through Japan International Cooperation Agency (JICA), under its economic assistance programme. This was another success for inviting foreign investment in the project after two largest companies of China had entered the project this month. A Korean company was also negotiating with Sindh Board of Investment to enter into the coal mining project. The foreign firm was expected to take part in scheduled bidding of four blocks of Thar Coal project next month. In the scheduled bidding, three companies from China, two from Korea, and a consortium of Germany and Czech were also expected to take part, he claimed. Under fresh bidding, the secretary said, foreign investment was likely to be made for almost 2000-megawatts power and mining projects in Thar.
More international giants in coal and coal mining sectors were expected to come to Pakistan. Younus Dagha, who is also Managing Director of Thar Coal and Enery Board, said international giants had started taking interest after a successful investment conference held last month in which foreign companies were briefed about the project.
Earlier, according to the secretary, Coal and Energy department of government of Sindh had successfully attracted attention of two of the largest Chinese energy companies M/s China Three Gorges and M/s Orient Group which had signed separate MOUs with provincial government in Beijing this month.
Mr Wang Shaofeng Vice Chairman of CTG (China Three Gorges Corporation) and Mr Mohammad Younus Dagha, Secretary Coal and Energy had signed MOU on 15th November, whereby CTG has shown its willingness to participate in International Competitive Bidding for Thar Coalfield’s blocks VIII, IX and X as well as for Sonda Coalfield. The proposed project will be for coal mining and power generation of 4000 MW with an investment of around $8 billion.
M/s China Three Gorges is one of the largest Chinese companies and has, to its account, several energy projects in China and abroad including the world’s largest Three Gorges Dam. Apart from participating in future projects in Thar Coalfield, CTG has already purchased the ready project in Sindh’s Sonda Coalfield in Thatta, earlier developed by M/s CMC of China for a 400 MW coal mining and power generation project.
M/s CTG also signed two other MOUs with the provincial government for wind power generation project of 1000 MW and Wind Turbine manufacturing facility near Nooriabad. Another MOU was signed between Mr Hongwei Zhang, Chairman of Orient Group and United Energy Group (UEG) and Secretary Coal and Energy who also hold charge of Secretary Investment. MOU covers both coal power project and wind energy project, in Sindh. The group, again one of the largest in China, has shown interest in developing coal based power plants in Thar and Badin Coalfields. It has also acquired letter of intent for a 150 MW project in wind in first two years which the company intends to scale up to 500 MW in four years. M/s UEG has already invested in Oil fields of Badin by acquiring British Petroleum’s concessions in the district with investment of several hundred dollars. New endeavours of UEG will bring another investment of around $1.2-2.5 billion. In the five blocks of Thar Coal project, two UK based companies including Cougar Energy and Oracle Coalfield-PLC, Global Mining Company of Japan and local firms like Sindh Engro Coal Mining Company were working on various stages.
Presently, Younus Dagha said, work on infrastructure development in on the horizon. This includes improvement of road networks, effluent treatment system, water supply project from Makhi Farash, Alternate supply-waste water from LBOD, Transmission Line from Matiari to Thar CF and Thar airport, with the investment of Rs9.6 billion, Rs4.0 billion, Rs27 billion, Rs9.0 billion, Rs21 billion and Rs800 million respectively. Besides project including Thar Lodges in Islamkot-30 bedded, Reverse Osmosis Plants for potable water and rescue station have already been completed.
