09-09-2009, 06:37 AM
KARACHI (September 09 2009): Sindh government and Engro Power Generation Limited on Tuesday signed an agreement for mining and generating 600-1000 megawatts power from Thar Coal fields on public-private-partnership basis. The agreement was signed by Aijaz Ali Khan, Secretary Mines and Mineral Development on behalf of Sindh Government and Asad Umer, CEO Engro Ltd and Khalid Mansoor, CEO Engro Power Generation.
The ceremony held at Chief Minister House was attended by Chief Minister Syed Qaim Ali Shah, Minister for Irrigation and Power Syed Murad Ali Shah and CM's Special Assistant Waqar Mehdi. Under the agreement Sindh Government will make 40 percent and Engro will make 60 percent investment. The project envisages 600 to 1000 MW electricity and 2 percent of the profit would be spent on the welfare of local population. The project feasibility will be completed in 18 months.
Salient features of the joint venture are as under:
1. First project for an open cast mining facility with an annual capacity of 3.5-6.5 million tones for which a detailed feasibility study to be carried out.
2. Feasibility of an Aprox: 600-1000MW Thar Coal power plant which will be carried out by Engro Power Gen.
3. A company proposed to be called " Sindh Engro Coal Mining Company" to be incorporated with initial sufficient capital to complete the detailed feasibility study.
4. Engro Power Gen Ltd: Government of Sindh will be equity partners in 40:60 ratio (60 percent Engro) in the mining portion of the project.
5. Detailed Feasibility study to take 18 months and a further 6-12 months for financial close of the project.
6. The Company will ensure that adequate skill development programmes are put in place along with other training facilities for locals of the area.
7. 2 percent of profit before tax to be spent on corporate social responsibility related activities in Thar.
8. Board of Directors to comprise 10 directors in 60:40 ratio. Chairman to be nominee of Government of Sindh and CEO of Engro.-PR
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The ceremony held at Chief Minister House was attended by Chief Minister Syed Qaim Ali Shah, Minister for Irrigation and Power Syed Murad Ali Shah and CM's Special Assistant Waqar Mehdi. Under the agreement Sindh Government will make 40 percent and Engro will make 60 percent investment. The project envisages 600 to 1000 MW electricity and 2 percent of the profit would be spent on the welfare of local population. The project feasibility will be completed in 18 months.
Salient features of the joint venture are as under:
1. First project for an open cast mining facility with an annual capacity of 3.5-6.5 million tones for which a detailed feasibility study to be carried out.
2. Feasibility of an Aprox: 600-1000MW Thar Coal power plant which will be carried out by Engro Power Gen.
3. A company proposed to be called " Sindh Engro Coal Mining Company" to be incorporated with initial sufficient capital to complete the detailed feasibility study.
4. Engro Power Gen Ltd: Government of Sindh will be equity partners in 40:60 ratio (60 percent Engro) in the mining portion of the project.
5. Detailed Feasibility study to take 18 months and a further 6-12 months for financial close of the project.
6. The Company will ensure that adequate skill development programmes are put in place along with other training facilities for locals of the area.
7. 2 percent of profit before tax to be spent on corporate social responsibility related activities in Thar.
8. Board of Directors to comprise 10 directors in 60:40 ratio. Chairman to be nominee of Government of Sindh and CEO of Engro.-PR
http://www.brecorder.com/index.php?id=95...=&supDate=