Investor Presentaiton

ANNUAL REPORT P Private Power and Infrastructure Board ANNUAL REPORT Thar Coal based Power Project at Thar Block-II by M/s Engro Powergen Limited Private Power and Infrastructure Board Thar Coal based Power Project at Thar Block-II by M/s Thar Energy Limited Engro Powergen Thar Private Limited (EPTL) was formed in 2014 to set up a 2 x 330 MW power project in Thar Block II, Sindh, Pakistan. The company is a joint venture between Engro Powergen Ltd (EPL), China Machinery Engineering Corporation (CMEC), Habib Bank Ltd (HBL), and Liberty Mills Limited. Engro project is amongst five (5) Thar coal based power generation projects which are included in the CPEC. The Sponsors of this project along with the Government of Sindh, have made a special purpose company, Sindh Engro Coal Mining Company (SECMC), which is developing first coal mine at Thar for power generation; and will supply Thar coal to this and other upcoming projects. By the grace of God and unparalleled efforts of the sponsors, the coal mining work on Phase 1 of Thar Block-ll has been completed by SECMC on schedule, after unearthing of first coal layer in June 2018. Salient features of project are as follows: > Project Company: Engro Powergen Thar Limited > Sponsors: Key milestones achieved EPL, HBL, CMEC, Liberty Mills Thar Block-II, Sindh Issuance of LOI: Issuance of LOS: FC Date: 20.11.2014 17.04.2015 Commissioning Date: 04.04.2016 10.07.2019 > Location: > Capacity: 660 MW > Project Cost: > Applicable Policy US$ 995.4 million 2015 Hub Power Company Limited having its well-known track record for developing various IPPs in Pakistan has now invested in developing 330 MW mine mouth lignite coal power project at Thar Block-II. The Project is being jointly sponsored by M/s HUB Power Company Limited, Fauji Fertilizer Limited and China Machinery and Engineering Corporation under the China-Pakistan Economic Corridor (CPEC) framework. The total cost of the Project is US$ 497 million while China Development Bank and Habib Bank Limited are the lead lenders. This important project is included in Priority projects of CPEC to be connected through ±660 kV Matiari-Lahore HVDC Transmission line. Salient features of project are as follows: > Project Company: Thar Energy Limited Key milestones achieved > Sponsors: > Location: Hub Power Company Limited, HBL, CDB, BAFL Thar Block-II, Sindh Issuance of LOI: Issuance of LOS: FC Date: 02.08.2016 09.12.2016 30.01.2020 > Capacity: 330 MW > Project Cost: > Applicable Policy US$ 497.7 million 2015 Current Status: Engro Power project is a pioneering project in generating electricity using indigenous lignite coal from the Tharparkar district. After achieving COD on 10th July 2019, this project is now connected with the national grid and supplying cheap and reliable power to the country, thus opening avenues for power generation projects based on Thar coal. Engro project presently stands 3rd at NTDC merit order list. Current Status: The project is set to be completed by March 2021. The Financial close of the Phase-II of the Thar coal mine by SECMC has already been acheived in December 2019. In order to meet the completion timelines, sponsors had already initiated construction work at site prior to Financial Closing, which is in progress at full swing. Project is not likely to be completed within targeted timelines due to outbreak of COVID-19. Actual situation of delay would be cleared once the impact of Pandemic is substantiated. 79 80

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