Karachi: The Sindh government anticipates USD 4-6 billion inflows through the auction of four new mining blocks of the Thar coal reserves, a news source quoted Provincial Minister for Energy Imtiaz Ahmed Shaikh as saying. As per the official, the provincial government also plans to hand over the control of the Thar airport to a private firm.
As per officials, China’s Shanghai Electric Power Company Limited (SEC) is expected to invest more than USD 2 billion in the development of Thar coal mining blocks, as well as a coal-fired power project, under the multi-billion dollar China-Pakistan Economic Corridor (CPEC) initiative.
Moreover, the SEC recently initiated civil works on the second mining block – with its launch announcement expected soon.
Meanwhile, a Saudi Arabian company opened negotiations with the government for making investments in the coal reserves. As per the energy minister, the company wants to utilise the reserves in its gas production efforts with an aim to produce fertilisers.
Shaikh revealed that a meeting of the Sindh Coal Authority (SCA) approved to conduct international bidding for the auction process. He added that they expect each block to attract an investment of about USD 1 billion to USD 1.5 billion. He revealed that the blocks IV, VIII, X, and XI were ready for auction. He said that in the other two blocks, namely I and II, several domestic and international companies were already engaged in coal mining.
The minister said that the SEC would establish a 1,320-megawatt coal-fired power plant near the open-pit mine situated in block II. He added that company will begin producing electricity using the Thar coal reserves over the coming two to three years.
The minister revealed that three more companies are already in the queue for launching three more Thar coal-fired projects of 330-megawatts each in block II soon.
Regarding the Mai Bakhtawar Airport in Thar, Shaikh stated that they have planned to hold an open bidding process to grant the airport’s management operations to a private firm. He added that they plan to hand over the management within a time period of two to three months.
The minister clarified that the provincial government would continue to own the airport but they have decided to run its operations under a public-private partnership mode. Meanwhile, the Civil Aviation Authority (CAA) has issued a license to the SCA for running the airport, he added.
