Pakistan Thar Block II Phase II Coal Electricity Integration Project is officially put into operation
- by BTN
The commercial operation unveiling ceremony of Pakistan Thar II Block II Coal Power Integration Project under the framework of China Pakistan Economic Corridor was held in Thar, Sindh Province, southern Pakistan on October 10, 2022.
Pakistan Thar Coal Power Project is a coal-fired power plant developed by China Mechanical Engineering Corporation, Hengfeng Petroleum and FFC in the Thar Phase II mining area of Thar Coal Field, Sindh Province, Pakistan, as part of the China Pakistan Economic Corridor Project. The Phase II Coal Electricity Integration Project of Thar Block II, which is put into commercial operation, is mainly undertaken by China Machinery Engineering Co., Ltd. This project is mainly coordinated by the Ministry of Energy (Power Division) of Pakistan and supervised by the Private Power and Infrastructure Committee (PPIB).
The exploration and development of coal power potential in Thar region originated in 2008. At that time, the government of Sindh invited all parties to put forward proposals to develop Thar coal reserves through public-private partnership. Subsequently, the Sindh Angru Coal Mine Company (SECMC) was established in October 2009 as a joint venture between the Government of Sindh (GoS) and the Angru Company to develop the mining industry in Block II of the Thar Coal Block in the Thar Coal Field. In May 2013, a power company established in the name of Tharco Power Co., Ltd. (THARCO) became a subsidiary of SECMC, whose task is to develop the first power project based on coal mined by SECMC. According to the joint venture agreement, Anglo is responsible for project management and financing, while the Sindh government is responsible for infrastructure development and obtaining the necessary consents and approvals for the project.
In 2009, with the efforts of bilateral partners, the cooperation between China and Pakistan on this project was launched. In 2013, since Premier Li Keqiang proposed the China Pakistan Economic Corridor project during his visit to Pakistan, the cooperation between Thar District and relevant Chinese enterprises in coal power projects has been further deepened. On December 21, 2015, CMEC affiliated to Sinomach signed a series of financing agreements for thar coal power projects with Pakistani initiators such as anglogon group, Chinese consortium led by China Development Bank and Pakistani consortium led by Habib Bank Limited, which means that the first coal power integrated project of China Pakistan Economic Corridor, the flagship project of the Belt and Road, was officially launched.
The Thar Coal Field Block II Coal Mine and Power Station Project is a priority project for China Pakistan economy, with a total investment of more than US $2 billion. It is the first coal power integration project in China Pakistan Economic Corridor and even in Pakistan. Since signing the contract, the project has been running well and has a bright future. On July 10, 2019, the 660MW Thar Block II Anglutar Coal Power Project with a cost of US $990 million was completed, creating more than 3000 local jobs. In October 2022, the construction of Thar Coal Power Project of Thar Block II Port Railway will be completed. Up to now, many projects with a total value of more than 2.5 billion dollars are still under construction.
Pakistani Prime Minister Shabaz Sharif congratulated the successful operation of the project in his speech at the ceremony. He said that the China Pakistan Economic Corridor is a gift from an iron brother, and the implementation of related projects cannot be separated from China’s long-term strong support. The development of Thar coalfield and the construction of power station have saved Pakistan a lot of foreign exchange expenditure, driven the development of local related industries, and greatly benefited Pakistan’s economic and social development. According to the Chief Minister of Sindh, the capacity of the power plant is expected to increase to 2640 MW by 2022. About 1.25 billion MW of Thar coal power has been connected to the national grid, so the power generation cost is reduced to 17 rupees per kilowatt hour, while the power generation cost of LNG is 24 rupees per kilowatt hour, and the power generation cost of imported coal is 37 rupees per kilowatt hour.
In his speech, Pakistani Foreign Minister Bilawal said that the Thar coal power project has provided employment opportunities for local people, improved the quality of life, and changed the old look of the once barren desert. Since the development of Thar coal power project was launched, it has provided more than 3300 jobs for the local people, effectively integrated the local social forces and significantly improved people’s living standards. The Chief Minister of Sindh also said that by the end of 2022, Thar’s coal-fired power generation will bring US $2 billion in revenue to the national finance, which will be used to build schools, hospitals, roads and other infrastructure and projects conducive to people’s livelihood. The project has granted vocational training scholarships worth a total of Rs. 75 million to employees, and 23 schools have been established under the project. According to the minister, the project also built a 120 bed hospital, where hundreds of people receive treatment every day.
The commercial operation unveiling ceremony of Pakistan Thar II Block II Coal Power Integration Project under the framework of China Pakistan Economic Corridor was held in Thar, Sindh Province, southern Pakistan on October 10, 2022. Pakistan Thar Coal Power Project is a coal-fired power plant developed by China Mechanical Engineering…
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