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Jul
22

Thar Coal Power Project

Prime Minister Nawaz Sharif and former President Asif Ali Zardari on 31stJanuary 2014 jointly inaugurated the Thar Coal Mining & Power Project in Tharparkar, Sindh. The thar coal project is part of the China-Pakistan Economic Corridor (CPEC).

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The first phase of 3.8 million tons per year coal mining and the generation of 660 MW of electricity is expected to be completed by 2018. In the second phase, the capacity of coal mining will be enhanced to 7.6 million tons per year, and another 660 MW of electricity will be generated.

The expected cost of the first phase is $1.6 billion. China and Pakistan signed agreement to finance the project on 21 December 2015. A syndicate of local banks will provide Rs.520 billion loan, and a syndicate of Chinese banks will provide $820 million loan.

Government of Pakistan has provided a sovereign guarantee of $700 million to underwrite the loan. The Thar coal mining and power project is a joint venture by Sindh Engro Coal Mining Company (SECMC) and Engro Powergen Thar Limited (EPTL).

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