Water and Power Minister Liaquat Ali Jatoi has said a US-based company, AES, has expressed its intention to invest $1 billion to establish 1000mw coal fired power station in Thar. "Pakistan has received tremendous response from foreign investors during two road shows held in Dubai and London," he added. Addressing a press conference here on Tuesday the minister said that the US company has sent a letter to the government, which he showed to the media, expressing interest to establish 1000mw project based on Thar Coal, which would bring in an investment of over $1 billion.
Jatoi said a UK-based company, Globeleq, has also shown interest to invest $1 billion in power sector. "The two commitments would attract over $2 billion," he said, adding that in the road shows, Pakistan marketed three projects which include 400-500mw Uch-II power project based on low BTU gas; 450mw dual-fuel (gas/oil) Faisalabad power project; and 350-400mw dual-fuel Lahore power project.
He said investors have shown interest to invest about $1.3 billion in the said three projects. He said Pakistan also briefed foreign investors about investment opportunities in small to medium hydel power projects with a total generation capacity of about 1800mw and an estimated investment of $2.25 billion.
The minister said investors were also briefed about investment opportunities for five coal blocks: two in Thar; two in Sonda; and one in Lakhrar.
He informed that some of the potential investors which participated in the road shows included General Elkectrci (USA), Globeleq (UK), International Power (UK), AES (USA), Wartseila, Bestway (UK) Marubeni (Japan), Mitsui (Japan), Al-Ghorair (UAE), Emmar (UAE), Al-Fotaim (UAE), Bin-Zayed Group (UAE), National Park (UK), Actis (UK), Brazil Energy, Standard Charted Bank, Shell, Fauji Foundation, Saigal, Secon, Ibrahim Group, Shapphire, Ruplai.
About Neelum-Jehlum hydropower project, the minister said the process of international competitive bidding (ICB) for the said project would be completed by April 30 and after that the government would award contract to the winning party for initiating the project.
He informed the media men that the country, at present, has 2275mw surplus electricity and 2.439 million acre feet stored water as compared to 0.079maf in the same period last year.
About corporatisation of power sector, the minister said the process would be completed as early as possible, adding that after the completion of corporatisation, it would be easy to regulate finances of unbundled companies.
Chartered Accountants would be appointed to maintain financial discipline in the entities.
The minister said that the margin of profitability in power sector stands at 50 to 60 percent.
To a question about expenses incurred on holding of road shows, the minister said both road shows were sponsored by foreign investment companies.