Islamabad, The Private Power and Infrastructure Board (PPIB) today announced the financial closing of Pakistan’s largest Thar coal-fired Power Project, developed by M/s Shanghai Electric Corporation, China. The event marks a significant milestone in the country’s energy sector development.
According to Private Power and Infrastructure Board, the financial closure ceremony was held at PPIB’s office, attended by key figures such as Mr. Shah Jahan Mirza, Managing Director of PPIB, Mr. Meng Donghai, Chief Executive of the Thar Coal Block-1 Power Generation Company, and Mr. Zhou Bo, Chief Executive Officer of the Industrial and Commercial Bank of China (ICBC), Karachi Branch, along with other high-level officials.
The project, boasting a generation capacity of 1320 MW, is part of the China-Pakistan Economic Corridor (CPEC) initiative. Despite challenges posed by the COVID-19 pandemic, the Project Company managed to commence construction on time by utilizing equity
and bridge financing, successfully completing the project by February 5, 2023.
Shanghai Electric Group Corporation serves as the primary sponsor of this landmark project. Sino Sindh Resources Limited (SSRL) has been designated as the coal supplier from Thar Block-1. The project’s financing is supported by a consortium of banks including 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. Additionally, Sinosure is the insurer of the project.
The Thar coal power plant employs state-of-the-art Super Critical Technology and meets stringent environmental standards, being fully compliant with both World Bank/IFC and Pakistan EPA guidelines. Notably, this project ranks as the second most cost-effective in terms of fuel costs, at approximately Rs. 4.98/kWh. The operation of this plant is expected to save Pakistan around US 500 million dollars in foreign exchange annually, while also significantly reducing the overall electricity basket price, potentially translating to around Rs. 200 billion saved each year. The project is anticipated to generate 9 billion units of electricity annually.
The successful completion of this project increases the total installed capacity of Thar coal-based power projects to 3300 MW, demonstrating PPIB’s dedication to promoting indigenous fuel-based power generation. Mr. Shah Jahan Mirza, in his remarks, praised the role of CPEC in the development of Pakistan’s power sector and reaffirmed his commitment to the timely completion of other ongoing hydro, wind, and solar projects under the CPEC framework.