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China approves loan for coal mining and power plant in Pakistan
- 8 years ago (2015-12-17)
- David Flin
The China Export and Credit Insurance Company (Sinosure) has written to the Pakistan Ministry of Water and Power that the coal-fired plants and surface mining in Block II of the Thar coal field has been approved by the State Council of China, and was now waiting for both sides to conclude the loan agreement and insurance policy.
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Around $800 million of loans will come from a Chinese banking syndicate, led by the China Development Bank and the Industrial and Commercial Bank of China, and about $500 million will come from a Pakistani banking syndicate comprising Habib, United, and Alfalah banks.
Sinosure and the Sindh Engro Coal Mining Company (SECMC) are jointly undertaking surface mining of 3.8 MTPA of coal and establishing a 660 MW coal-fired power plant in Tharparkar under the umbrella of the $46 billion China-Pakistan Economic Corridor (CPEC). This is the largest project on the top priority list of the CPEC, and the first to have reached such an advanced stage after the signing of the CPEC energy project agreements in November 2014. CPEC envisages 14 projects of 10,400 MW in the first phase, which are scheduled for commercial operation by 2017-18.
Pakistan and China have already entered into an agreement for laying a transmission line for first evacuation of electricity from the Thar plant to the national grid near Matiari.