Govt issues guarantee in favour of Engro Powergen

KARACHI: The Pakistan government has issued its guarantee in favour of the Engro Powergen Thar Limited (EPTL), to recognise the achievement of financial close of the mining and power projects being undertaken by the Sindh Engro Coal Mining Company (SECMC) and EPTL in Thar Block II.

In addition, commemorating this important milestone, a 500kV D/Circuit Transmission Line from Thar to Matiari by the National Transmission and Despatch Company (NTDC) will also be established, a statement said on Monday.

With all the necessary formalities for Phase 1 for both the projects completed, initiation for Phase 2 for mine and power plant expansion by Hub Power Company and Thal – Nova Power Limited is also underway.

SECMC, a joint venture company with the government of Sindh, Engro Powergen and affiliates namely, Thal Ltd (House of Habib), Hub Power Company, Habib Bank Limited, China Machinery Engineering Corporation (CMEC) and State Power International Mendong (SPIM), will be responsible for extracting 1.57 billion tons of lignite coal available in its allocated area of Block II in Tharparkar.

During the first phase of the project, a mine of 3.8 million tonnes per annum capacity will be developed by SECMC.

This coal will be utilised by a mine-mouth power plant of 2x330MW, a project, which is being established by Engro Powergen Limited, a Joint Venture Company of Engro PowergenChina Machinery and Engineering Company, Habib Bank Limited and Liberty Mills Limited. COD for Phase 1 of both Projects is expected to take place by mid 2019.  The federal government’s role has been instrumental to the success of the project to date.