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Ideally, energy/mining projects should be developed by Private Sectors but due to lack of infrastructure whose sole responsibility lies with Governments, are developed in PPP setting By requiring the private sector to put its own capital at risk, Government is obliged to provide conducive investment environment and appropriate incentive package
Should government build infrastructure first or should project demonstrate its commercial viability?
The solution is concurrent development of infrastructure and the project because commercially viable projects can only attract investments if all other prerequisites are in place
Al-Tuwairqi Group of Saudi Arabia Jahangir Siddiqui Group Engro PowerGen Lucky Cement (YB Group) Giga Group Metal Investment Holding Company (British virgin Island)
Engro PowerGen was recommended by the Evaluation Committee of TC&EB. Thereafter, TC&EB gave its approval in principle
Detailed presentations have been made to the President and Prime Minister of Pakistan, who also supported GoS JV with Engro PowerGen A joint venture agreement between GoS and Engro PowerGen Limited was signed in September, 2009
- GoS Advertisement for ICB proposals for Block II - Sinocoal, China completed screening study for Block II - EPL submitted proposal to GoS for Mining & Power - EPL selected as perferred JV Partner of GoS for Mining - EPL Board of Directors approved JV Agreement - Engro Chemical Board of Directors approved JVA - Sindh Cabinet approval for JV Agreement with Engro
19th 27th 14th 9th 20th 28th 11th 11th 15th 10-11th
GoS would assist in timely availability of all relevant data (previous and currently ongoing studies), requisite approvals from Federal and Provincial Governments and timely delivery of infrastructure requirement for the Project including water, roads, transmission line and effluent disposal
Engro PowerGen will lead development, financing, management and execution of the Project in a professional and fast track manner
This JV reflects new strategic focus of Government & Engro to develop Thar Coal reserves, raising the bar on how mega project investment is planned, prioritized, financed and delivered
Subsequently, the coal mine will be scaled up to 22.5 Mt/a capacity and power plant capacity will be increased to 4000 MW expeditiously
Coal Mining and Power Generation Project will start operation by December 2016
Challenges :
Emissions Compliance to World Bank standards for mining and power generation
Aquifer Management
Overburden dumping
Solid and liquid waste disposal Washing & drying of coal
Groundwater Modeling to assess impact of mining on underground water is under development Environmental & Social Impact Assessment (ESIA)
HBP/SRK have completed environmental & social baseline study Preliminary resettlement assessment survey completed
Infrastructure Development :
All infrastructure related activities (raw water, effluent disposal, transmission line, roads etc.) are being closely monitored by a GoS & SECMC steering committee to ensure timely availability
2010
Q 2 Q 3 Q 4 Q 1
2011
Q 2 Q 3 Q 4 Q 1
2012
Q 2 Q 3 Q 4
2013-Q1 2016
Y 2 Y 3 Y 4
JV Company Formation & Owners Consultant selection Mining Feasibility Study & Limited ESIA ITB Preparation EPC Bid Submission Selection of EPC Contractor & Project Cost Estimation Power Generation Feasibility Study
ITB Preparation
PPIB & NEPRA Approval EPC Bid Submission Selection of EPC Contractor & Project Cost Estimation Financial Close Notice to Proceed to Contractors Mining & Power Generation Project Construction
Import substitution of expensive RFO Due to import substitution benefits, Thar mining will act as a direct foreign exchange earning sector and help lower the adverse impact of imported fuel on Pakistans Trade Balance Lower power tariff for Coal fired Power Plants as compared to RFO based power tariff Pakistans global competiveness slumped from 107 (2007) to 120 (2008) out of 134 countries for Quality of Electricity Supply. However, Thar development will improve Pakistans competitiveness (Source : Global Competitiveness Report 2009)
Socio-Economic Development of Thar region Presently Thar District ranks lowest on all socio-economic development indicators in Sindh Development of indigenous coal mining industry will lead to skilled job creation and transfer of technology Potential for future downstream industries in Petro-chemical and Fertilizer products
Thank You