Pakistan People’s Party Chairman Bilawal Bhutto Zardari has said that the Thar coal project is dream of his mother Shaheed Mohtarma Benazir Bhutto and he was hopeful that this, being piloted by Sindh Engro Coal-Mining Company (SECMC), will be functional by 2018.
“This project needs to bring great economic changes in the lives of people of Thar besides plugging the energy crisis prevalent across the country.” The PPP chairman made these remarks at a brief about the project given by Shamsuddin Ahmed Shaikh, Chief Executive Officer of SECMC at Bilawal House on Monday.
Others who were present at the meeting include Chief Minister Syed Qaim Ali Shah, Ministers Murad Ali Shah, Jam Mehtab Daher, Jam Khan Shoro, Senator Taj Haider and Jameel Soomro.
The SECMC is owned 51 percent by the government of Sindh and 49 percent by Engro Powergen Limited and its partners. The Sindh government has already granted sovereign guarantee, which is waiting for endorsement of federal financial ministry, besides the approval of State Bank of Pakistan and National Bank of Pakistan. The SECMC is expected its financial close by next month.
With investment of US $ 2 billion, the Thar coal and power project is Pakistan’s biggest project in terms of investment being taken by the private sector. This project is listed among the “prioritized projects” under the China-Pakistan Economic Corridor (CPEC) based on readiness expected to be completed by 2018.
Bilawal Bhutto Zardari was informed that the mining project would be set up an initial open cast mine of 3.8Mt/a in 38 months at the cost of US $ 845 million while two units of 330mw each will be installed as sub-critical mine mouth power plants on Thar lignite coal costing US $ 1.1 billion.
Shaikh briefed that required studies, agreements and contracts, regulatory requirements, equity financing updates, debt financing update and detailed engineering had already be completed and financial close of the project was expected in the last quarter of current year. The mining work is in progress at the site Block-II in Thar and so far 3.3 million cubic meters of overburden has been removed digging 10 meters deep mine.
Bilawal stressed that interests of the local people of Thar may be given top priorities as he wanted to see the benefits to lives of Thar people together with the completion of the project. He said that the Thar coal project should provide jobs to the locals and the dislocated communities may be rehabilitated all the civic amenities.
The PPP chairman was further briefed that the Sindh government had already approved resettlement plan and resettlement of first village would be completed by the end of 2017, which would be a model for all Thar and Pakistan with health and education facilities managed by the company. The officials also briefed the chairman about the idea to introduce bio saline agriculture to provide round-the-year fodder to livestock, and solar-chillers for collection of milk from dozens of centers in Thar.
