Jamshoro plant’s conversion to Thar coal demanded

KARACHI: Sindh government has asked the federal authorities to completely convert Jamshoro power plant onto local coal nine months after the project achieved its financial close, it was learnt on Thursday.

Minister for Energy Sindh Imtiaz Ahmed Shaikh, in a letter to the Federal Minister for Power Umar Ayub Khan, said the proposed 660MW plant-II of Jamshoro Power Company Ltd (JPCL) should be designed and run on Thar coal.

This “would save $125 million per annum in foreign exchange reserves and save $17.11 million on account of low cost electricity even after including cost of boiler technology change in tariff,” Shaikh said in the letter seen by The News.

The financial close – amounting to $303 million – for Jamshoro power project (lot-II) was achieved after two days of extensive consultations during a joint coordination conference of development partners arranged by the economic affairs division late last year. Islamic Development Bank agreed to contribute $100 million, Saudi Fund for Development $91 million, Kuwait Fund for International Development $40 million, while

OPEC Fund for International Development would chip in $72 million for the project.

The officials said the project, under the agreement, would use 80 percent imported sub-bituminous coal and 20 percent local Thar lignite, leading to the generation of economical energy to meet the future electricity needs of the country. Thar coal field is estimated to hold the world’s 16 largest reserves.

The provincial minister said Sindh Engro Coal Mining Company – a joint venture of Sindh government and Engro Corp. – signed a memorandum of understanding with JPCL, which agreed to utilise at least 20 percent of Thar coal in its two power plants of 660MW each funded by the Asian Development Bank.

Later, Special Adviser to the Prime Minister on Minerals Shahzad Qasim took the initiative to covert both units of JPCL on 100 percent Thar coal.