Karachi January 8 2022: Thar Energy Limited successfully achieves Back Energization of its 330 MW plant at Thar.
“As we enter in to the last mile works on the 330 MW lignite power plant, “Back Energization” was one of the fundamental milestones to ensure on time achievement of commercial operations.” Says Hub Power Chairman Habibullah Khan
A L S O || R E A D
NPL receives first installment of PKR 5,701 million
Thar Energy Limited (the “Company”) is setting up a 330-megawatt (MW) Thar Lignite Coal-based mine mouth Power Plant (the “Project”) in the energy park located in Block II of the Thar coalfields in Sindh. The Company is a part of China-Pakistan Economic Corridor (the “CPEC”) and is part of an effort of Government of Pakistan to achieve energy security and to reduce average cost of generation by moving from oil to Thar coal. The Project is estimated to cost $520 million which will be financed through a combination of debt and equity in the ratio of 75:25.
The Company has signed its Onshore and Offshore EPC Contracts and has initiated preliminary activities on the Site to expedite the Project construction and to achieve the RCOD as per the PPA. The Company has also executed its Power Purchase Agreement (PPA), Coal Supply Agreement (CSA), Water Use Agreement (WUA), Implementation Agreement (IA) and Supplemental IA (SIA) for the Project. Project will be fuelled by Thar Coal which will be supplied by the Sindh Engro Coal Mining Company (“SECMC”).
The sponsors of the Project are the Hub Power Company Limited (“HUBCO”), Fauji Fertilizer Company (“FFC”) and China Machinery Engineering Corporation (“CMEC”) (“Sponsors”) through CMEC TEL Power Investments Limited (“Share holder”).
The Company will arrange debt financing through a local and foreign consortium of lenders whereby the lead bank for the local consortium of lenders is Habib Bank Limited (HBL) and the lead bank for foreign consortium of lenders is China Development Bank (CDB). Financing Agreements are expected to be executed in November 2018.
The Company has also pledged to take active part in development works in Thar for the betterment of local Thar community. This will include working towards improvement in education, health, infrastructure and livelihood in the Thar region.
