Shanghai Electric’s coal project closed

Islamabad: The Private Power and Infrastructure Board (PPIB) on Wednesday afternoon declared the Financial Closing of Pakistan’s largest Thar coal-fired Power Project, executed by M/s Shanghai Electric Corporation, China.

The signing ceremony, held at PPIB, featured Mr. Shah Jahan Mirza, Managing Director of PPIB, Mr. Meng Donghai, Chief Executive of the Project Company (Thar Coal Block-1 Power GenerationCDRhoda Company), and Mr. Zhou Bo, Chief Executive Officer of Industrial and Commercial Bank of China (ICBC), Karachi Branch, among other high-level officials.

With an impressive generation capacity of 1320 MW, the Shanghai project was implemented under the China-Pakistan Economic Corridor (CPEC). Notably, despite the challenges posed by the COVID-19 pandemic, the Project Company demonstrated commendable resilience by initiating construction and completing the project on February 5, 2023, in adherence to agreed timelines between the governments of Pakistan and China.

Shanghai Electric Group Corporation serves as the project’s sponsor, while Sino Sindh Resources Limited (SSRL) acts as the coal supplier from Thar Block-1. The project’s lenders include Industrial and Commercial Bank of China (ICBC), China Development Bank, Bank of Communications Co. Ltd., China Minsheng Bank Corporation, Postal Savings Bank of China Co. Ltd., and Agriculture Bank of China, with Sinosure serving as the project’s insurer.

Incorporating state-of-the-art Super Critical Technology, the plant aligns with environmental standards set by the World Bank/IFC and Pakistan EPA. It boasts a remarkable fuel cost perspective (Rs. 4.98/kWh), contributing to an annual foreign exchange saving of approximately $500 million for the Government of Pakistan. Additionally, it plays a pivotal role in reducing the overall electricity basket price by around Rs. 200 billion annually, with an expected annual electricity generation of 9 billion units.

This marks the induction of Shanghai into the consortium of five commissioned Thar coal-based power projects, bringing the total installed capacity to 3300 MW, a testament to PPIB’s commitment to indigenous fuel-based power generation. Mr. Shah Jahan Mirza acknowledged the crucial role of CPEC in Pakistan’s power sector development, expressing determination for the timely completion of other hydro, wind, and solar projects under the CPEC arrangement.