CPEC Project Updates, April 2018

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Energy Projects

1. Thar Block II Mining and Power projects

Pakistan Thar Block II Mining and Power Projects is the one of the leading projects of China-Pakistan Economic Corridor (CPEC). It includes one indigenous coal mine with an annual production capacity of 3.8 million tons and a mine-mouth 2×330 MW power plant. Total project cost for both projects is over USD 2 billion. The investors include Government of Sindh, Engro Powergen, Thal Limited, Hub Power Company, Habib Bank Limited, Liberty Mills Limited from the Pakistan side and China Machinery Engineering Corporation from the Chinese side. The Chinese syndicate is led by China Development Bank (CDB), Construction Bank of China (CBC) and Industrial and Commercial Bank of China (ICBC), and the local syndicate consists of Habib Bank Limited (HBL), United Bank Limited (UBL), Bank Alfalah Limited (BAFL) and Faysal Bank Limited (FBL). The construction period is of 42 months. The NTP was given on April of 2016 and the COD for both projects is expected to take place by mid – 2019. This project is the first large power generation project which is using local coal. The project is set to address the severe power shortage crisis and will bring energy security to the country for its future generations. The project will also provide job opportunities directly or indirectly to the local population of Thar.

2. Port Qasim 2×660 MW Coal-Fired Power Project

Port Qasim 2x660MW Coal-fired Power Project is jointly developed by Powerchina Resources Limited (51% shares) and Al Mirqab Capital (49% shares), which is the first large-scale energy project launched under the China Pakistan Economic Corridor (CPEC).

The Project is located in the Port Qasim Industrial Park, and consists of two modern supercritical coal-fired units, a self-dedicated coal unloading jetty and a 4 km-length channel dredged and transferred to Port Qasim Authority. The Plant adopts the world’s leading technology – supercritical thermal technology with gross capacity of 2*660 MW, has the average annual energy output around 9,000 GWh and is able to support 4 million households’ daily electricity consumption. The Project has the world-class environment-friendly operations including seawater desalination, secondary circulating seawater cooling and flue gas desulfurization, satisfying the environmental standards of the World Bank, which will output the high efficiency and high availability to ensure sustainable, reliable and affordable electricity.

The total investment of Project is approximately 2.085 billion USD, with the ratio of equity and debt approximately 25%:75%. Debt will be arranged by the sponsors from the Export-Import Bank of China (China EXIM Bank), without increasing the financial burden of Government of Pakistan. The Project has directly created over 5000 job opportunities to Pakistani engineers and labors during construction period, and will annually create around 500 training and job opportunities to Pakistani talents during operation period. The massive construction of the Project started in May 2015. The Unit-1 synchronized on Nov. 10th, 2017, and the Unit-2 synchronized on Jan. 15th, 2018. The Commercial Operation is expected in April 2018.

          3. Sachal Wind Power Project

The Sachal Wind Power Project is located in Jhimpir District, Data County, Sindh Province, and Northeast of Karachi. The project is one of the 14 energy projects allocated in the cooperation between Pakistan and China and it is also the first completed loan signing of the new energy projects that belong to the Belt and Road Initiative (BRI) of China. The project period is 500 days allocated by China Hydropower Consulting Group. The Group adopts the model of EPC contracting construction. The project has a total investment of USD 110 million (11.33 billion rupees), the tax net on the Pakistani Government is 4 million dollars (512 million rupees) and the annual average power generation is 160 million/kw. After the completion of the project, it can reduce consumption of 50000 tons of coal a year, and reduce greenhouse gas emissions of 149850 tons, in order to improve the clean energy proportion, optimize energy structure to make a positive contribution.

Installed capacity?49.5MW

Annual output?160million/kw

Utilization hours?3000h

Business model: Engineering, Procurement and Construction (EPC)

Project investment?$110million

Project progress: The project has successfully achieved the TOC on May 15th 2017

4. Suki-Kinari Hydropower project

Suki Kinari Hydropower Project is located in Kunhar River of Khyber Pakhtunkhwa, Pakistan. It is a diversion-type Hydropower Project featuring high head and long tunnel. The dam and the power intake stand near Andherabela Village along the bank of Kunhar River, some 256km from Islamabad. The Project is equipped with 4 Pelton turbine generator units with a capacity of 221MW for each and total capacity of 884MW, maximum net water head of 922.72m and minimum head of 845.76m, enabling the average annual power generation of 3.212 billion kWh. The reservoir’s maximum operating level is 2233m, and the minimum operating level is 2223m. The reservoir’s capacity below the maximum operating level is 10,370,000m³.

Progress Report:

The ground leveling of the contractor’s camp at the right bank of headworks was completed and the masonry slope retaining wall is under construction. 213,000m3 excavation has been completed at the spillway area. The earth road to the portal of Adit A5 has been connected, and the contractor is working on the road slope cutting and ground leveling of the construction camp. All the other Adits were suspended by the issue of land acquisition.The total length of the access tunnel is 689m, which has been excavated to 136.8m. 92% of the soil road of the permanent road at tailrace area (access bridge to relocated switchyard) has been completed. The installation of the temporary mix batching at the contractor’s camp at tailrace area was completed and the ground leveling of contractor’s camp is undergoing.

5. Zonergy 900 MW PV Power Generation Project

Project Overview

Zonergy 900 MW PV Power generation project is located at Quaid-e-Azam Solar Park, Cholistan Region, Bahawalpur, Punjab Province, Pakistan. It has an installed capacity of 900 MW, with an annual energy output of 1.3 billion KW. The project investment is USD 1.5 billion and the mode of business is Direct Investment. During the construction of the first phase of 300MW project, Zonergy paid an accumulated amount of 16.41 million USD (around 1.7 billion rupees) of taxes to Pakistani government. On 8 June 2016, the first phase of 300MW was completed and connected to grid, and the annual energy output reached 480 million KW, at least meeting everyday electricity needs of 200,000 families. This project is expected to reduce 151,841.15 metric tons of coal consumption and 353,139.13 metric tons of greenhouse gas annually. It contributes to local economic development, people’s livelihood and optimization of energy structure.