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Investor Presentaiton

ANNUAL REPORT Province/Territoty Sindh Balochistan Punjab KP AJ&K Total P Private Power and Infrastructure Board ANNUAL REPORT Coal Potential in Pakistan Reserves in Million Tonnes 185,456 217 %age 99.7 0.11 235 0.12 90 0.04 9 0.004 186,007 Source: Pakistan Energy Year Book 2019 So far coal has played a significant role in reducing dependence on the Pakistan's useful but limited supply of natural gas and to reduce burden on foreign exchange being spent on the costly import of oil. Enormous deposits of coal exist in the country while further exploration in different areas is in progress but so far, only a fraction of it is being utilized. The huge coal resources of the country can play a important role in meeting the energy demand for long time. Previously, inavailability of reliable coal was the main obstacle for attracting potential investors. However, CPEC being a true game-changer has been a catalyst for developing this unaddressed chapter and now, several coal mining and power generation projects are in process of development in Thar coalfield. Thar coal would help cut fuel imports, saving precious billions of rupees of foreign exchange, and would also provide reliable power round the clock to the national grid. Block-wise breakup of the Thar coal reserves is briefly defined in the image below: Private Power and Infrastructure Board PPIB is actively playing its role for attracting private investments in this relatively a new chapter of the energy sector, as previously only Lakhra Power Plant located in Jamshoro, Sindh was generating power in the public sector utilizing indigenous coal of Lakhra coal mines which was commissioned in 1995 with an installed capacity of 150 MW. Except Lakhra, no other indigenous coal based power plant was established in the country until the launch of CPEC, as a result sizeable private capital was injected into several vital spheres of energy sector which include development of Pakistan's first private sector state of the art transmission line project, hydropower and the Thar coal based power generation projects. In order to achieve long awaited dream of utilizing local coal for power generation, efficient and environment friendly power plants were planned on Thar Coal. In this regard, currently, five (5) projects totalling 3,960 MW with around US$ 6 billion investment are being implemented by PPIB under CPEC framework which are at different stages of implementation. These power projects are being developed in the private sector and are at advanced stages, planned to be commissioned from 2019 through 2022; and first of which has already started its commercial operations and presently stands 4th at NPCCs merit order list. SMW 1400 1200 1000 800 600 Specific Block/Field Area Drill (Sq.km) Holes Reserves/Resources (Million Tonnes) Total Measured Indicated Inferred Hypothetical 400 Block-I (Sinhar Vikian-Varvia 122.0 41 620 1,918 1,028 3,566 Block-II (Singharo 55.0 43 640 944 1,584 200 Bhitro) Block-III (Saleh Jo Tar) 99.5 41 411 1,337 258 2,006 Block-IV (Sonal Ba) 80.0 42 637 1,640 282 2,559 Sub Total (Block I-IV) 356.5 167 2,308 5,839 1,568 9,715 Rest of Thar Coal Field 8,643.5 335 4,717 11,291 37,082 112,700 165,790 Total (Thar Coal Field) 9,000.0 502 7,025 17,130 38,650 112,700 175,505 73 Thar Coal based Power Generation IPPs being procssed by PPIB under CPEC Project Commissioned Engro Thar Energy ThalNova Shanghai Oracle Since, 99% deposits of country's indigenous coal reserves lie in Thar, Sindh plus other factors like availability of better infrastructure and accesses to basic facilities, it is obvious to attract investors' attention. In addition to Thar coal based projects under CPEC, PPIB is processing another two Thar coal based projects which include 660 MW Lucky and 330 MW Siddiqsons project. All Thar coal based projects which are being undertaken by PPIB as represented in below image, carry an overall investment outlay of around US$ 7.5 billion. 74
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