ISLAMABAD - The financial closing for 660MW Lucky Electric Coal Power Project based on Thar coal was achieved on Monday.

The financial closing documents for the 660MW power project, another Thar coal based IPP, were formally signed by Shah Jahan Mirza, managing director PPIB, and I H Haqqi, chief executive officer of M/s Lucky Electric Coal Power Project. The signing ceremony was witnessed by caretaker Minister for Power, Ministry of Energy, Barrister Syed Ali Zafar.

The project will be located at Port Qasim, near Karachi, and based on local coal from Thar. An investment of $1080.9 million will be made for implementation of the project. This project will be equipped with the super critical technology and sea water will be utilised for cooling of the plant. Lucky Power Project is being financed through Debt Equity ratio of 75:25%, with the sponsors being M/s Lucky Cement Limited while the lenders’ consortium of the project consists of Habib Bank Limited, United Bank Limited, National Bank of Pakistan, Bank Alfalah Limited, Askari Bank Limited Soneri Bank Limited, The Bank of Punjab, Meezan Bank Limited, Faysal Bank Limited and Dubai Islamic Bank Limited.

Upon financial closing, PPIB will also issue sovereign guarantee on behalf of the government of Pakistan in favor of project company to secure the payment obligations of power purchaser. The achievement of financial closing will facilitate the project sponsors in initiating construction activities at site which will be concluded by March 2021 and project will start generating electricity thereafter. The Sindh Engro Coal Mining Company (SECMC), which is the lease holder for execution of mining operations for coal extraction in the Thar coalfield, Block II, will supply coal to the project while the electric power generated from the project will be sold to CPPAGL under a 30 years power purchase agreement.

The minister said, “In order to improve power supply in the country to make it more robust and reliable, and reduce dependence on imported fuels, projects based on indigenous Thar coal assume further importance from energy security as well as economic perspective”, advising PPIB to further exploit the Thar coal potential for power generation. He also appreciated PPIB’s efforts of successful inducting 37 power projects totaling 15,500MW capacity, and with an investment portfolio of around $17 billion, which are providing reliable electricity to the national grid. PPIB with its proven track record has achieved yet another major milestone with the financial closing of another Thar coal based IPP after 660MW Engro Powergen.