Pakistan's largest chemical fertilizer producer, Fauji Fertilizer Company Limited (FFCL), along with other equity partners, has signed financing agreement for its 330MW Thar Energy Limited (TEL) power project at the 8th Joint Coordination Committee (JCC) meeting, held in Beijing. China Development Bank (CDB) has been engaged as the lead arranger for the foreign financing from China and Habib Bank Limited as the lead arranger for the local financing.
The ceremony was attended by Khusro Bakhtiar, Federal Minister for Planning, Syed Murad Ali Shah, Chief Minister Sindh, Mohammad Munir Malik, Chief Financial Officer FFCL, Khalid Mansoor, Chief Executive Officer Hub Power Company, Saleemullah Memon, Chief Executive Officer TEL, Zhang Chun, Chairman of China Machinery Engineering Corporation (CMEC), Xiao Min Zheng, VP (Sichuan Branch) China Development Bank (CDB), and Usman Hameed, Head of Investment Banking at Habib Bank Limited (HBL).
TEL has been established to setup a 330MW mine-mouth lignite-fired power plant, one of the first power projects to utilize indigenous lignite coal from Thar Coal Block II, located in the Thar Region for power generation. FFCL has a 30% equity stake in TEL, with 60% and 10% owned by Hubco and CMEC TEL Power Investments (CTPIL) respectively as per the Shareholders' Agreement signed between the parties.
Engineering Procurement and Construction (EPC) contract for the project has been signed with China Machinery and Engineering Corporation (CMEC) which has started preliminary activities on site to expedite the project construction and achieve the Commercial Operation Date (COD) during the first half of 2021.
Fauji Fertilizer Company Limited is the largest urea manufacturer in the Country with an annual production of over 2 million tonnes through its three plants. The Company maintains first position amongst PSX's top 25 companies for the past several years and has a diverse portfolio of investments ranging from the fertilizer, banking, food, cement and power sector.-PR