KARACHI, Oct 10: The World Bank is in the process of issuing a Concept Note on its agreement for giving financial and technical support to Sindh and federal governments in evaluation of investment proposals and documentation of Thar coal-fired power projects.

“We completed negotiations with a World Bank team only this week,” disclosed Asad Ali Shah, a member of Thar Coal and Energy Board, who also heads a four-member committee that is evaluating six investment proposals for setting up integrated mining and power generation projects on Thar coal.

Federal Water and Power Secretary Ismail Qureshi, Secretary of Sindh Mines and Mineral Development Yunis Dhaga and Managing Director of Energy Board Aslam Sanjrani are other members of the evaluation committee.

Mr Sanjrani is said to be in the United States for some time in connection with medical treatment of his wife which has delayed the process of decision-making on six investment proposals.

“We are examining financial viability of these proposals in conformity with internationally acceptable standards and the World Bank will help us to draw technical parameters,” Asad said.

He said that the World Bank team with which the negotiations were held included their mining consultant who was convinced of viability and feasibility of power projects on Thar coal.

He said Pakistan’s first experience of private power project was Hubco in early 1990s. It took considerable time in documentation and more than 18 months in financial closure.

In case of Thar coal projects he indicated that the committee may be able to reach some decision on approvals by end of this year or early next year. After approvals, he hoped that financial closure of the projects should be achieved before 2009 and if all goes well, the first power project should come in operation by early 2011.

Though still too early to say, he said a power project of 600 to 1,000 megawatts will be relatively expensive as mining will be costlier but a 5,000 megawatt power project would be less costlier in terms of per ton coal mining.

“Wapda is moving on schedule to take up its share of work in the area while the government is considering bringing in water from Nara Canal to Thar for power project,” he informed.

The six groups interested in investment in Thar include Engro with a team of reputed corporate leaders who own the company and enjoy a big share in market of their products. The other group is Jehangir Siddiqui who is a known stock broker with interest in many fields including bank and finance. Then there is Al Tuwariqi group who are setting up a state-of-art steel mill in Karachi.

Officials in Karachi say that President Asif Zardari is taking proposals for Chinese investors to consider investment in Thar coal projects, Bhasha Dam and Chashma nuclear plant. There is also a proposal to set up a Pakistan China Power Corporation for investment in these energy projects.

The Deputy Chairman Planning Commission Salman Faruqi invited Indian investors to explore investment in Pakistan’s energy sector including Thar during his visit to New Delhi last July. The government too now realizes the significance of power projects based on local fuel rather than on imported, which are oil fired power projects.

With 175 billion tons of proven coal reserves, the experts are confident of generating 50,000 megawatt power projects for at least next 100 years without any dependence on foreign source.