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Chinese firm to build Pakistan's Thar coal project

KARACHI - China's Shinuha Group has pledged to try to start the coal mine work under the US$1 billion Thar coal and power project after getting Chinese government approval, probably in September 2005, but no later than November 2005.

This was stated by Sindh Minister for Mines and Mineral Development Irfanullah Khan Marwat on his return here from China on Saturday. He also said Unit-I of the power plant would be put into commercial operation in 46 months and Unit-II, six months later.

He said the Shinuha Group requested a concession period of 25 years instead of 30 years.

Marwat said the company was to hand over the operation of power plant after 25 years "but we have requested" that they should continue it for 30 years.

Meanwhile, he said, the Pakistani side would provide a whole package of standard agreements documentation to be signed in this project by the end of this year.

The Shinuha Group will do its best to complete the feasibility study report by February 2005 and submitted to Pakistani side as soon as the project will be approved by the Chinese government.

Marwat said that of the total cost of $1 billion, $455 million will be spent on the mining project and rest on the power project.

He said that under the agreement, Wapda would lay the 500kv line from the power station to the national grid, Jamshoro.

He said Pakistan will only pay power rates for 30 years. However, the rates will be decided by the Thar Task Force headed by the prime minister.

(Asia Pulse/PPI)

Oct 19, 2004

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