The Private Power Infrastructure Board (PPIB) has warned Dadabhoy Group that the government will cancel its 220 MW integrated coal mining and power generation project at Sonda-Jherruk if the firm fails to submit performance guarantee by November 15, official sources told Business Recorder.
The sources said the company had not fulfilled its earlier commitments with regard to finalisation of coalfield lease with the Sindh government despite the passage of several months. "You were advised on April 15, 2008 to expedite your project otherwise inform us whether or not you are interested in developing the project. In response, you confirmed your interest with the promise that the Sindh government has agreed to issue lease of allocated coalfield, which will be finalised within one month," said, PPIB Managing Director Fayyaz Elahi in a letter to Managing Director of Dadabhoy Hydrocarbon Limited (DHCL) Amin Dadabhoy.
Elahi also claimed that on July, 2008, the PPIB again sought the status of the project and the firm revealed that the Mines and Minerals Development Department gave its consent to grant lease to the DHCL and a summary was sent to the Sindh Chief Minister for approval.
"Approximately three months have lapsed since you made the last promise. As such, you are advised to finalise your other formalities and revert to the PPIB by November 15, 2008 with performance guarantee at 5,000 per MW and processing fee 100,000 dollars (non-refundable) for issuance of letter of support (LoS), failing which the Federal government would consider cancelling earlier approval of your project and invite expression of interest from other serious investors," the sources quoted Fayyaz Elahi as warning to the firm.
Earlier, General Manager, Investment, Engineer. A. Wahab Memon, in a letter to the PPIB had stated that the DHCL was committed to implement the subject project positively without any iota of doubt.
He, however, requested the PPIB to pursue the Sindh government for its urgent approval as, according to him, the DHCL was committed to implement the project on fast track basis. The PPIB had also been apprised that the DHCL had made the entire project implementation related arrangements with its foreign associate firm for its implementation within the stipulated time.