The Sindh government has failed to sign a joint venture agreement with M/s Al-Abbas Group to generate 300-600MW coal-based electricity probably due to the fact that Czech Republic has warned that it will not invest 500 million euros in the project, Business Recorder has learnt.
Although, the Sindh government-led by Pakistan Peoples Party (PPP) had been claiming of giving priority to vast high quality coal reserves of Thar, the officials have adopted dilly-dallying tactics in the project of national importance, sources told Business Recorder on Wednesday.
The Sindh government had decided to sign a JV with Al-Abbas Group for Thar Coal on equity ratio of 40:60 to set up 300-600MW coal-based power plants a couple of month back, however the agreement was yet to be signed by these two partners, sources added. Earlier, the Czech Republic, partners of Al-Abbas Group, had shown certain reservations and warned to leave the project citing bureaucracy as chief hurdle, they added.
The way the things are moving and the lack of response from the government of Sindh, it is feared that history might repeat itself and like China, Czech Republic may also leave the project," sources said referring to a letter forwarded by Technical Director, WTC Group, Karel Galuska to Secretary Coal and Energy Development Department Aijaz Khan on June 21, 2010.
After the warning letter, the Sindh Chief Minister had constituted a committee with Additional Chief Secretary (Dev) as its chairman and secretaries of finance, law and coal and energy development department and the secretary to CM as the committee members, they said, adding that no progress has been made on the JV agreement as yet, which clearly reflects the official apathy. Sources said the law department had vetted the agreement and forwarded a summary to the chief minister for approval, but the summary could not return from the Chief Minister's House despite passage of more than 15 days.