Engro Thar Coal-Fired Power Plant Phase 1

Active

Prospective

The project entails the development of a 660 MW mine-mouth coal-fired power plant in Tharparkar, Sindh, Pakistan. This is the first phase of Thar project and in phase two will be added another 660 MW power to the plant facility. The power plants are being constructed in addition to a 3.8 million tonnes per year coal mining project, the coal from which will feed the power plant. The project is executed on a BLT (Build - Lease and Transfer) basis for a 20 years concession period. The sponsors include the Engro Powergen Limited (50.1%), Habib Bank Limited (9.5%), Liberty Mills Limited (5.4%), China Machinery Engineering Corporation (35%). The sponsors contributions amount to $277 million. The project is part of the China-Pakistan Economic Corridor (CPEC). It will be the first project in the country in which Thar coal will be utilized for power generation. Its development will reduce the country’s dependence on the costly oil-based power generation, thus saving millions in foreign exchange. Power Purchase Agreement (PPA) has been signed between the Private Power and Infrastructure Project (PPIB), National Transmission & Dispatch Company (NTDC) Limited and M/s Engro Powergen Limited (EPGL). The total project cost for phase I is $1,108 million. Financing comprises a mixture of conventional and Islamic financing of $831 million from a consortium of local banks and from a consortium of Chinese lenders guaranteed by Sinosure and sponsor equity of $277 million. The Pakistani banks are providing $210 million, while the Chinese lenders are providing $621 million. Habib Bank, United Bank, Bank Alfalah, Askari Bank, Meezan Bank, The bank of Punjab, Nib Bank, Soneri Bank, Sinduh Bank, National Bank of Pakistan and Faysal Bank are the local lenders, while the foreign syndicate comprises Industrial and Commercial Bank of China, China Construction Bank and China Development Bank. Financial close occurred on 8th April, 2016. http://www.nepra.org.pk/Tariff/IPPs/003%20Coal/Engro%20Powergen%20Thar/TRF-301%20ENGRO%20POWERGEN%20THAR%2013-03-2015%203272-74.PDF http://www.dawn.com/news/1180010 http://www.dawn.com/news/1227907 https://ijglobal.com/data/transaction/32419/thar-coal-fired-power-plant-660mw-phase-1

Energy

Pakistan

High

World Bank Group

Project

Commercial, Oil and Gas, Manufacturing (Industrial), Power Transmission, Power Generation (CCGT), Chemical (Industrial), Government