AGL 40.00 No Change ▼ 0.00 (0%)
AIRLINK 131.50 Increased By ▲ 1.97 (1.52%)
BOP 6.82 Increased By ▲ 0.14 (2.1%)
CNERGY 4.50 Decreased By ▼ -0.13 (-2.81%)
DCL 8.80 Decreased By ▼ -0.14 (-1.57%)
DFML 42.37 Increased By ▲ 0.68 (1.63%)
DGKC 84.00 Increased By ▲ 0.23 (0.27%)
FCCL 33.10 Increased By ▲ 0.33 (1.01%)
FFBL 76.70 Increased By ▲ 1.23 (1.63%)
FFL 12.00 Increased By ▲ 0.53 (4.62%)
HUBC 109.60 Decreased By ▼ -0.95 (-0.86%)
HUMNL 14.27 Decreased By ▼ -0.29 (-1.99%)
KEL 5.50 Increased By ▲ 0.11 (2.04%)
KOSM 8.22 Decreased By ▼ -0.18 (-2.14%)
MLCF 39.31 Decreased By ▼ -0.48 (-1.21%)
NBP 64.29 Increased By ▲ 4.00 (6.63%)
OGDC 197.78 Decreased By ▼ -1.88 (-0.94%)
PAEL 25.86 Decreased By ▼ -0.79 (-2.96%)
PIBTL 7.62 Decreased By ▼ -0.04 (-0.52%)
PPL 156.85 Decreased By ▼ -1.07 (-0.68%)
PRL 26.15 Decreased By ▼ -0.58 (-2.17%)
PTC 18.34 Decreased By ▼ -0.12 (-0.65%)
SEARL 81.45 Decreased By ▼ -0.99 (-1.2%)
TELE 8.08 Decreased By ▼ -0.23 (-2.77%)
TOMCL 34.20 Decreased By ▼ -0.31 (-0.9%)
TPLP 8.80 Decreased By ▼ -0.26 (-2.87%)
TREET 16.77 Decreased By ▼ -0.70 (-4.01%)
TRG 59.01 Decreased By ▼ -2.31 (-3.77%)
UNITY 27.55 Increased By ▲ 0.12 (0.44%)
WTL 1.43 Increased By ▲ 0.05 (3.62%)
BR100 10,580 Increased By 173.3 (1.67%)
BR30 31,633 Decreased By -80.5 (-0.25%)
KSE100 98,801 Increased By 1472.7 (1.51%)
KSE30 30,746 Increased By 553.5 (1.83%)

The federal government has committed to providing sovereign guarantee to Sindh Engro Coal Mining Company (SECMC) for its Thar coal mining project, said a statement on Tuesday. Based on the government's commitment, the Ministry of Finance (MoF) has now approved a draft for a foreign currency loan agreement and sovereign guarantee document. The foreign currency loan for the project, which is part of the China Pakistan Economic Corridor (CPEC), is being provided by a consortium of top Chinese banks led by China Development Bank. ICBC bank also included in this consortium.
Moreover, MoF has also given a go-ahead to the terms and conditions of the local currency loan for the project needed for finalisation of local currency loan document and associated government's guarantee. Sovereign guarantee for the project would be issued by a provision of backup guarantee by Sindh government. This now paves the way for the company to achieve financial close within this year.
The associated power plant being established by Engro Powergen Thal Limited (EPTL) is also well on its way to achieve financial close in the same time frame while the sponsors of the SECMC and EPTL have spent approximately four billion rupees to kick-start work on the project before financial close. Physical work is continuing at both sites in earnest and companies hope to achieve grid synchronisation by 2018. SECMC is developing a 3.8 mtpa mine and EPTL is developing a 660MW project in Thar. The capital cost of both projects is approximately US two billion dollars.

Copyright Business Recorder, 2015

Comments

Comments are closed.