ISLAMABAD: The Private Power and Infrastructure Board (PPIB) declared the financial closure of Pakistan’s largest Thar coal-fired power project, executed by M/s Shanghai Electric Corporation of China.
The financial closing document was signed by Shah Jahan Mirza, Managing Director of PPIB, Meng Donghai, Chief Executive of the Project Company (Thar Coal Block-1 Power Generation Company), and Zhou Bo, Chief Executive Officer of Industrial and Commercial Bank of China (ICBC), Karachi Branch. Other key officials from PPIB and the Project Company/Sponsors were also present at the event.
This significant Shanghai Electric project, with a capacity of 1,320 MW, was developed as part of the China-Pakistan Economic Corridor (CPEC). Notably, the project’s construction began in the challenging circumstances of the COVID-19 pandemic, and it was successfully completed on February 5, 2023, adhering to the timelines set by the governments of Pakistan and China.
Shanghai Electric Group Corporation is the project’s sponsor, and Sino Sindh Resources Limited (SSRL) is the coal supplier from Thar Block-1. The lenders for the project include the Industrial and Commercial Bank of China (ICBC), China Development Bank, Bank of Communications Co. Ltd., China Minsheng Bank Corporation, Postal Savings Bank of China Co, Ltd., and Agriculture Bank of China, with Sinosure serving as the project’s insurer.
Utilizing state-of-the-art Super Critical Technology, the plant meets stringent environmental standards set by the World Bank/IFC and Pakistan EPA. With a fuel cost of Rs. 4.98/kWh, it is the second cheapest power project, saving the Government of Pakistan approximately US $500 million in foreign exchange annually.
Moreover, the project has significantly contributed to reducing the overall electricity basket price, translating to an estimated annual savings of around Rs. 200 billion while anticipating the generation of 9 billion units of electricity per year.
