The Private Power and Infrastructure Board (PPIB) announced the $2 billion financial close of the Thar coal-fired power project, which is currently under Chinese management.
The financial close agreement was signed by PPIB Managing Director Shah Jahan Mirza, CEO of Shanghai Electric Corporation Meng Donghai, and CEO of Industrial and Commercial Bank of China (Karachi Branch).
The PPIB MD praised the project for starting construction work during COVID-19 and completing the project by February 5, 2023. Pakistan and China.
The project’s main sponsor is Shanghai Electric Group Corporation, while the coal supplier from Thar Block-1 is Sino-Sindh Resources Limited (SSRL). The ICBC, China Development Bank, Bank of Communications Co. Limited, China Minsheng Bank Corporation, Postal Savings Bank of China Co Limited, and Agriculture Bank of China are the main sponsors while Sinosure, China’s premier provider of export credit insurance, was the insurer.
The Thar coal plant is based on cutting-edge technology and is outfitted with the most up-to-date equipment to meet environmental obligations. It is also fully compliant with the environmental standards of the World Bank and International Finance Corporation (IFC) as well as the Pakistan Environmental Protection Agency.
Every year, the country saves approximately $500 million in foreign exchange through operations at the plant. It also contributes to lowering the overall basket price of electricity.
The project, which has a power capacity of 1,320MW, is part of the China-Pakistan Economic Corridor (CPEC). This plant brings the total installed capacity of five commissioned Thar coal-based power plants to 3,300MW.
