China Machinery and Engineering Corporation (CMEC) have been accorded the engineering, procurement and construction contract of the 330-megawatt power project in Thar, Sindh by ThalNova Power Thar (Private) Limited on Wednesday.
The power plant which is being built at a cost of $498.3m, is expected to start commercially producing electricity by December 31, 2019. Hence the CMEC will sell electricity at Rs3.67 per kilowatt-hour during the first 10 years of its operations, which would later be reduced to Rs1.91 per kilowatt-hour for the next 20 years.
ThalNova is a joint venture, with Thal Limited and Novatex Limited as the main shareholders. It is a China-Pakistan Economic Corridor (CPEC) power project based on Thar lignite coal and is to be located at the power park site in Tharparkar District, Sindh.
As per CPEC Federal Coordinator Zafaruddin Mahmood this project will be a game-changer for the energy industry.
One of the biggest problems plaguing the power sector in Pakistan is expensive power generation, thus cost-effective electricity production through indigenous Thar coal will lower power sector’s deficit and ultimately reduce the country’s bludgeoning circular debt, he stated.
According to the terms of generation licence awarded by the National Electric Power Regulatory Authority, ThalNova will provide electricity to the national grid for a period of 30 years.
ThalNova Chief Executive Officer Khalid Siraj Subhani mentioned this was one of the initial projects under the CPEC between the governments of Pakistan and China. He also mentioned that the federal and provincial governments have played a critical role in the establishment of ThalNova and other energy projects in Thar.
