PAGE Blog Business Weekly Magazine
Thar coal key to resolve future energy needs of the country
Realizing the pinch of acute energy shortages, the present government has assigned top priority to different energy projects both in the public and private sector under Pakistan-China Economic Corridor package.
Responding to the government policy, Engro Powergen Limited (EPL) signed a joint venture agreement with China Machinery Engineering Corporation (CMEC) for development of 2 x 330 MW coal based power plant in Thar Block II, last week. This joint venture company, Engro Powergen Thar Limited (EPTL) will enter into a coal supply agreement with Sindh Engro Coal Mining Company (SECMC) for purchase of 3.8 metric tons per annum coal, which will be used for power generation.
The joint venture agreement was signed by Mr. Shamsuddin A. Shaikh – CEO EPL and Mr. Zhang Chun – President CMEC. The ceremony was witnessed by Mr. Syed Tariq Fatemi Honorable Minister of State for Foreign Affairs, Mr. Zaffaruddin Mahmood, Special Envoy CPEC , Mr. Shajahan Mirza – MD PPIB and Mr. Ejaz Ahmed Khan MD TCEB. The ceremony was also attended by other shareholders, Thal Limited and Habib Bank Limited.
Mr. Zhang Chun welcoming the delegation said that “CMEC is a pioneer in developing power projects in Pakistan and we see Thar project to be the key to solving future energy crises in Pakistan”.
Mr. Shamsuddin Shaikh further explained the key milestones achieved in Thar and said “this joint venture between the two companies shows our resolve and commitment to see this project completed by 2017. We have successfully achieved all milestones and are now actively working together to solve Chinese financing issues.”
Engro Powergen is a landmark highlighting cooperation between Pakistan and China and shows the resolve to address the energy crises faced by Pakistan. And the first tangible fruit out of the China Pakistan Economic Corridor.
Sachal wind power
Sachal Energy Development (Pvt) Limited, a fully owned subsidiary of Arif Habib Corporation Limited has also signed a financing agreement with Industrial and Commercial Bank of China (ICBC) for Sachal Wind Power Plant. Sachal Energy which is the first Wind Power Project to achieve this milestone under Pak-China Economic Corridor projects.
Under this agreement, ICBC will provide up to $107 million for construction of the 49.5MW Sachal Wind Power Project in Jhimpir, Thatta. ICBC is the largest bank in the world by total assets and is one of China’s ‘Big Four’ state owned commercial banks. The signing ceremony was held at National Energy Administration (NEA) in Beijing and was attended by Mr. Zhang Wenchao, Deputy Head, ICBC, Mr. Jiang Tao, Head of Corporate Banking, ICBC, His Excellency Masood Khalid, Ambassador of Pakistan to the Peoples Republic of China, Syed Tariq Fatemi, Special Assistant to the Prime Minister on Foreign Affairs, Mr. Mohammad Yunus Dagha, Secretary, Ministry of Water & Power, Mr. Kashif Mateen Ansari, CEO, Sachal Energy, several diplomatic corps, leading Chinese businessmen and civil society members. Sachal Energy has already signed a power purchase agreement with National Electric Power Regulatory Authority in February 2014. It has also signed an engineering, procurement and construction contract and operation & maintenance contract with Chinese company HydroChina Corporation Limited in April 2012.
The project construction is expected to start in April 2015 and commercial operation is expected to begin in 2016. The project will annually generate 136,500MWh of clean energy and reduce carbon dioxide emissions by approximately 85,000 tons.
This project will not only contribute to help resolving Pakistan’s energy crisis but will also strengthen economic relationship between China and Pakistan and surely foster technical cooperation between the two friendly neighbors.
Global wind power
Global Wind Power (GWP) and Buksh Energy Private Limited have joined hands to provide turnkey solutions for managing and commissioning wind energy projects in Pakistan. The partnership aims to facilitate the existing wind energy projects with the selection of an experienced EPC and project developer.
This is the first ever collaboration of BEPL and GWP for supporting the wind energy sector of the country and will provide a strategic balance of services, utilizing the two leading companies’ respective strengths and resources to leverage the energy sector of Pakistan. Global Wind Power (GWP), Denmark, is a leading international project developer specializing in developing, implementing, selling and managing wind turbine projects for professional investments. With more than ten years and 610MW of international experience under its belt working in the capacity of an EPC developer for wind projects, the company is the perfect candidate to help realize and harness the huge wind energy potential in Pakistan, in collaboration with Buksh Energy.
Over the past 6 years Buksh Energy Private Limited has been committed to maximizing energy efficiency and ensuring the optimum utilization of resources in its attempts to alleviate Pakistan’s severe energy crisis. BE’s recent foray into the wind energy sector furthers the company’s aims to provide investors with the opportunity to fund real change in Pakistan and develop the renewable energy industry; an aim which they are already well on the way to achieving through their solar projects. They are now looking to transfer that success to wind energy.
GWP’s senior business advisor, Mr. Nicky Mads Larsen, is also very positive about the company’s future with BE, saying “the partnership between Buksh Energy and GWP aims to combine the best of local and international know-how and experience for the benefit of the local industry, developers and investors. Although we have been in traditional project joint ventures before, our local partner agreement is a new and interesting form of collaboration for which we are very excited, and which allows us to explore markets that would otherwise be difficult to enter.”
According to the CEO of BE, Mr. Asim Buksh, the partnership aims to fully facilitate the investors in setting up wind farms with a team of experts possessing the finest EPC and project management skill set. This move fits in with our vision 2020 to ensure that we are responsible for 5% of Pakistan’s energy needs to be met by renewable resources.
