Karachi May 5 2022: The lignite based 330 Mega Watt Thar Energy Limited (TEL) project in Thar Block II is likely to achieve Commercial Operation Date (COD) by July 2022, according to information shared by the company with investors.
So far, 93% of the work on project has been completed and recently, the project has achieved 15 million safe manhours milestone.
TEL is setting up 330MW mine mouth lignite-fired Power Plant at Block II, Thar. TEL has signed its land lease agreement with Sindh Engro Coal Mining Company on June 26, 2019 for purchase of 244 acres of land for the Project.
TEL has issued Preliminary Notice To Commence (PNTC) to China Machinery Engineering Corporation (Offshore Contractor) and China East Resources Import and Export Corporation (Onshore Contractor). The construction activities are in full swing and TEL has completed 37% of Project Construction to achieve COD, targeted for end of March 2021.
The Company has signed a Shareholders’ Agreement with Fauji Fertilizer Company Limited (FFCL) and CMEC Tel Power Investments Limited (CMEC Dubai) for equity investment of 30% and 10% respectively in the Project. FFCL and CMEC Dubai have also injected their share of equity in the Company and at present, the Company, FFC and CMEC Dubai own 60, 30 and 10 percent shares in TEL respectively.
TEL has engaged China Development Bank (CDB) as the lead arranger for the foreign financing from China and Habib Bank Limited (HBL) as the lead arranger for the local financing. On December 20, 2018, TEL executed the financing documents with both CDB and HBL for arrangement of financing for the Project.
