PPIB to issue LoI for setting up of 1,000MW coal fired project

ISLAMABAD — Pakistan's Private Power and Infrastructure Board (PPIB) would soon be issuing a letter of interest (LoI) to Hassan Associated Limited for the setting up of 1,000MW coal fired project at Thar, Sindh.

By A Correspondent

Published: Thu 10 May 2007, 8:59 AM

Last updated: Fri 19 Jul 2024, 11:39 AM

The board meeting presided over by minister for water and power Liaquat Ali Jatoi yesterday was informed that the sponsors had already been granted exploration licence for an area of 64km at Thar coal field by the Sindh government. The project involves an expected investment of $1.5 billion.

Sources said the owners of Hassan Associates had recently held meetings with Prime Minister Shaukat Aziz and won over his sympathies on the grounds that the company could put together investors and execute the project but a condition in the power policy barred it from going ahead. The group sponsors is one of the major stakeholders in the privatised Karachi Electric Supply Company(KESC).

Under the power policy, the main sponsor should have at least $30 million net worth while the main sponsor together with other sponsors should have $114 million of net worth to execute the project. The net worth of Hasan Associates, said these sources, significantly on the lower side but the fact that strong groups were not forthcoming for the project, it was considered prudent to relax some of the conditionalities.

Farooq Hasan, the head of group had pleaded that he (Farooq) along with Hasan Associates should be considered as main sponsors and allowed to be responsible "jointly and severally" to develop the project. The group was of the view that it had enough financial resources to undertake the project. Sindh government had already leased out a piece of land to the group.

After the April 10 meeting of the group with the Prime minister, the company was advised to submit a formal proposal to the PPIB. The Prime Minister had directed that there would be no special tariff for the project and Hasan Associates should be facilitated within the realm of reasonableness in the development of their project.

The PPIB board meeting was also attended by Sindh Minister for Mines and Mineral Development, secretaries of water and power and petroleum, chairman Wapda and chief secretary NWFP.

An official statement said the meeting noted with satisfaction that pace was picking up on development of hydel resources for power generation and a total of 22 hydropower projects of around 5,700 MW were being processed at present.