Hasan Associates Limited has convinced Prime Minister Shaukat Aziz that it is in a position to set up 1000 MW integrated power plant in Thar even not having net worth required in the power policy, official sources told Business Recorder. The sources said, Farooq Hasan, Chairman Hasan Associates met Prime Minister on April 10 to brief him on the proposal to develop Thar coal power project.
They pointed out that according to the power policy the net worth of main sponsors is required at $30 million and main sponsors together with other sponsors (ie 51 percent of total equity) to have $114 million for execution of the project. However, Hasan Associates net worth is lower than that is laid down in by the power policy.
"To move forward on Thar coal project for which few investors are really coming forward. Farooq Hasan along with Hasan Associates be considered as main sponsors and they should jointly and severally be responsible for the development of the project," the sources quoted Farooq Hasan as saying.
He was of the view that Hasan Associates have financial resources to undertake the project for which lease has been provided by the Government of Sindh (GoS). The sources said that the Prime Minster appreciated the interest of Hasan Associates for the development of 1000 MW power project in a remote area of Pakistan.
After detailed discussion, the Prime Minister directed the Private Power Infrastructure Board (PPIB) to examine the proposal wherein Farooq Hasan together with Hasan Associates is considered as main sponsors and are jointly and severally responsible for undertaking project.
Hasan Associate had also been asked to submit a detailed proposal to PPIB clearly identifying time line of various activities for undertaking the feasibility study for 1000 MW power project based on Thar coal. The proposal should not be open-ended.
The Prime Minister said that there would be no special tariff for the project, the sources said. According to sources, the Prime Minister asked Energy Advisor to co-ordinate all activities related to the development of the power project by Hasan Associates whereas Ministries of Water & Power, Petroleum, PPIB and Wapda to facilitate Hasan Associates within the realm of reasonableness in the development of their project.