$2bn Thar power plant achieves financial close

The Private Power and Infrastructure Board (PPIB) — a one-window facility of the federal government — on Wednesday announced the $2 billion financial closing of the country’s largest Thar coal-fired power project, currently operational at Thar, by Shanghai Electric Corporation, China. In a statement, the PPIB said the financial close agreement was signed by PPIB Managing Director Shah Jahan Mirza, Chief Executive of the project company Meng Donghai, Chief Executive Officer of Industrial and Commercial Bank of China (ICBC), Karachi Branch Zhou Bo. Having a generation capacity of 1,320MW, the project has been implemented under the China-Pakistan Economic Corridor (CPEC). The PPIB chief commended that to meet stringent timelines agreed by the governments of Pakistan and China, the project company commenced construction work in a crunch situation of Covid-19 by leveraging its equity and bridge financing and completed the project on Feb 5, 2023. Shanghai Electric Group Corporation is the main project sponsor of the project, while Sino-Sindh Resources Ltd (SSRL) is the coal supplier from Thar Block-1 whereas 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 are the lenders to the project. Chinese Sinosure is the insurer of the project.