China has agreed to finance second 660 MW coal fired power plant at Thar block II aimed at enhancing generation capacity of Thar block to 1320 MW. This decision was made at the meeting held on video conference between Secretary Ministry of Water and Power, Mohammad Younus Dagha and Zhang Yuqing, Vice Administrator National Energy Administration China. Similar decision was also taken for a coal fired Power Plant at Hub, Balochistan
According to the Ministry of Water and Power, video conference was held to discuss the progress of CPEC projects. After deliberations, Ministry of Water and Power was successful in convincing Chinese side, that the expansion of mining and power generation at Thar coal was critical for enhancing energy security and reduction in electricity tariff in the long run.
Both sides agreed to add another project of 660MW for Thar Block-II and increase the mine size from 3.8 MTPA to 6.5 MTPA in priority list of CPEC projects. In order to further expand power generation on cheaper fuel ie coal, the Ministry of Water and Power and Chinese side agreed to add another unit of Hubco coal fired project (1x 660 MW) on priority list under the CPEC framework agreement. This will help project sponsors to secure financing from Chinese financing institutions on priority basis.
Both sides also recognised the importance of +660 KV HVDC Transmission line from Matiari to Lahore which is very critical for evacuation of power from various projects planned in south in future. Both sides expressed the resolve to expedite the completion of all necessary requirements for achieving financial close at the earliest, so that this project is available to transmit new generation. M/s Engro is appreciating Minister Water and Power, Khawaja Asif, Secretary Water and Power, Younas Dagha, Minister for Planning, Ahsan iqbal and Additional Secretary to Prime Minister, Fawad Hasan Fawad for their continuous support.
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