ISLAMABAD - Two Implementation Agreements (IAs) for Thar coal-based power projects with a combined generation capacity of 990 MW, costing $1490 million, were signed here Thursday.

The documents in this regard were signed by Private Power and Infrastructure Board (PPIB) Managing Director Shah Jahan Mirza, with Lucky Electric Coal Project Director Muhammad Asad and Siddiqsons Energy Coal Project CEO Muhammad Abdul Vakil. The pact-signing ceremonies were attended by senior officers of PPIB and other high level officials representing both projects.

It merits a mention that Power Purchase Agreements (PPAs) of both the projects were executed 7th March.

The Implementation Agreements (IAs) for Thar coal-based power projects was signed for materializing the financing of $1490million for both the projects.

The 660 MW Lucky Electric Coal Project being developed by Lucky Electric Power Company Limited at Port Qasim has an investment of $1,080million whereas 330 MW Siddiqsons Energy Coal Project by Siddiqsons Energy Limited is located at Thar Block-II having investment of $410million.

Both projects will utilize Thar Coal supplied by Sindh Engro Coal Mining Company (SECMC) which is executing coal mining operations for coal extraction in the Thar coalfield, Block-II. Letters of Support have already been issued to both projects by PPIB which are currently at advanced stages of achieving Financial Closure.

It is anticipated that Lucky Electric Coal Project will start generation by March 2021 while Siddiqsons Energy Coal Project by June 2021.

Latest advancements by both projects are very crucial in achieving future milestones which include financial closing and start of construction activities.

The PPIB spokesman said that the addition of 990 MW of affordable and reliable electricity will energise the national grid in true sense while it will also be instrumental in saving of millions of dollars of precious foreign exchange annually, generating economic activities as well as employment opportunities for the people of Thar in particular and will also entail improvement of the basic infrastructure in the vicinity of these projects.

He said that after overcoming the crisis of electricity, the government of Pakistan is prioritizing and encouraging power generation through indigenous coal and hydro beside renewable resources for achieving energy security.

Exploration of Thar Coal is opening a new chapter in the energy history of Pakistan and PPIB has been quite successful in implementing seven thar coal based power projects of 5,000 MW which are at different stages of development, he added.