Engro realises promise of indigenous power production for Pakistan

Engro Powergen Thar (Private) Limited (EPTL) –

a majority owned company of Engro Energy – and Sindh Engro Coal Mining Company
(SECMC) – a joint venture of Engro Energy with the Sindh government and other
corporate partners – have successfully declared the commercial operations date (COD)
of the first phase of the Thar coal project.

SECMC successfully unearthed the first layer of

coal in June 2018 and has also completed the 60-day testing period of steady
state production of on-specification coal. This culminates the first phase of
the mining project.

On the other hand, Engro Powergen Thar Private

Limited – the company tasked to construct 2x330MW mine mouth power plants have
also declared its COD. The EPTL plant demonstrated the proof of concept earlier
by synchronizing both the power units in March and April respectively. The company
has since been involved in extensive testing of both the power units and has
successfully completed all relevant inspections and commissioning of the plant
thereby achieving COD.

The COD milestone of both the mining and the

power projects is a significant achievement given that the Thar dream has been
an elusive reality for millions of Pakistanis for over 27 years. The mining
project of SECMC and the EPTL power plant began approximately three years ago
in 2016 – after the financial close of the project – led by Engro Energy and in
collaboration with other commercial partners including Government of Sindh;
Thal Limited; HBL, HUBCO, SPIC and China Machinery Engineering Corporation (CMEC)
for the mine project; and HBL, CMEC and Liberty for the power plant.

Developed in a record time, as per schedule and

within projected costs, the Thar coal projects are part of the early harvest
component of the China Pakistan Economic Corridor (CPEC) framework – making it
truly a project of national and strategic significance.

Commenting on the occasion, Engro Corporation President

Ghias Khan said, “The declaration of the COD of the Thar coal mine and power
projects is a monumental achievement. This showcases not just the ability of
Engro to deliver on mega projects that are good for Pakistan but also
underscores the success of public-private partnership models to deploy
inclusive development in the country. At this juncture, I would like to
congratulate the federal and Sindh governments, along with all our partner
organisations, for their catalytic role and support in helping us deliver on
our commitments of the Thar coal projects.”

Engro Energy and EPTL Chief Executive Officer Ahsan

Zafar Syed said, “Today the Thar coal project has come full circle as we
fulfill the promise to the nation of providing indigenous electricity. Since
the synchronization earlier in April we have been involved in extensive testing
of the systems to ensure that we delivered quality and did not compromise on
the safety of the project. I am pleased that our efforts have resulted in
delivering engineering excellence on our pioneering coal fired power plant and
has brought us closer to our promise of providing Pakistan with low-cost,
affordable and abundant energy.”

SECMC CEO Syed Abul Fazal Rizvi congratulated

the nation on the achievement and said, “The successful culmination of phase
one of the mining project – ahead of schedule, well within projected costs and
with a stellar safety record – is indeed a remarkable feat. We are now working
diligently to pursue phase two of the mining activity as per our expansion
plans where we intend to economize the mine and double the production capacity
to 7.6 million tons per annum (MPTA) for the additional 2x330MW power plant
scheduled to come online in 2021.”