Investor Presentaiton
ANNUAL REPORT
P
Private Power and Infrastructure Board
ANNUAL REPORT
Thar Coal based Power Project at Thar Block-II
by M/s ThalNova Private Limited
Thal Norea Powes Thar Limit
Private Power and Infrastructure Board
Thar Coal based Power Project at Thar Block-I
by M/s Shanghai Electric Group
CCC
ThalNova Power Thar Private Limited Company (consortium of three renowned companies of
Pakistan) with technical support of Chinese companies is developing a 330 MW Thar Coal based Power
Project at Thar Block-II Sindh. This project being the priority project of CPEC is another step forward
towards development of Thar coal based power projects. SECMC being the mine developer of Thar
Block-ll will supply coal for this project. 660 kV Matiari-Lahore HVDC Transmission line will connect this
project to the national grid.
Salient features of project are as follows:
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Project Company: Thal Nova Power Thar (Pvt.) Limited
> Sponsors:
Thal Power Private Limited, Novatex Limited & Descon
Engineerring Limited
Thar Block-II, Sindh
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Location:
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Capacity:
330 MW
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Project Cost:
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Applicable Policy
US$ 497.7 million
2015
This project is based on Thar Coalfields Block-I. M/s Shanghai Electric Group having rich experience in
the field of power generation after forming an SPV namely Thar Coal Block-I Power Generation Co.
Ltd. (TCB-1), is developing this 1320 MW power generation project. Sino Sindh Recourses Limited (SSRL)
as mine developer is the coal supplier for the project. The project is also included in the Priority List of
CPEC projects. The project amongst others will be connected through ±660 kV Matiari-Lahore HVDC
Transmission line.
Salient features of project are as follows:
Project Company: Thar Coal Block-I Power Generation Co. Ltd.
Shanghai Electric (Group) Corporation
Key milestones achieved
Ilssuance of LOI:
Issuance of LOS:
02.08.2016
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08.12.2016
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Sponsors:
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Location:
>
Capacity:
1,320 MW
A A
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Project Cost:
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Applicable Policy
US$ 1,912.2 million
2015
Thar Block-I, Sindh
Key milestones achieved
Issuance of LOI:
21.08.2015
Issuance of LOS:
20.07.2016
Signing of PPA:
Signing of IA:
27.08.2019
12.12.2019
Current Status:
The project is set to be completed by March 2021. After issuance of LOS to the project company by PPIB,
the project is heading towards finanical close. Project agreements which include IA, PPA, CSA have
already been executed in 2017. However, project is facing delays and not likely to achieve COD by Mar-21.
Delays are mainly attributed to factors including outbreak of COVID-19 pandemic while other factors
include Sinosure, macroeconomic situation, delays in coal availability. PPIB as facilitator is playing its
role for earliest resolution of issues which are hampering the progress.
Current Status:
After issuance of LOS by PPIB, the project is progressing towards Financial Close. Power Purchase and
Implementation Agreements have been executed in August ad December 2019 respectively while
execution of Water Use Agreement with the Government of Sindh is in final stages. The financial close
of the project is targeted to be achieved by September 2020. Despite problems in financing from
Chinese side, the sponsors are trying their best to resolve the financing issues and complete the 660
MW capacity by August 2022 and the total of 1,320 MW by February 2023. Apart from COVID-19, project
is facing difficulties with regard to water allocation and execution of Water Supply Agreement with
Government of Sindh, and reluctance of Sinosure etc.
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