KARACHI, Dec 20: As Punjab government sets stage to receive a team of Chinese investors shortly to discuss power generation project based on Mianwali coal reserves, nothing seems to be happening in Sindh where engineers and experts are speaking of presence of the world’s fourth largest coal reserves (194 billion tons) at Thar.

Repeated efforts were made to contact Adviser to Sindh government on Mining Dr Khatumal, Secretary Mining Younis Dhagia and officials in Sindh Coal Authority to seek an update on the initiative to invite investment in coal mining announced by Chief Minister Syed Qaim Ali Shah in his budget speech. All these efforts failed to evoke any response.

“The Sindh government has already taken the initiative of inviting proposals for a joint venture on Thar coal and based on initial contacts, we are expecting an enthusiastic response from several reputed private sector groups,” the chief minister had then announced in the budget speech. Six companies responded to the initiative and are still waiting for a serious interaction with the government and a coal body that draws members from federal and Sindh governments to discuss and propose a way forward for further follow up actions.

“We keep on getting one date after the other for an initial meeting on Thar coal project without any session,” a frustrated and disappointed executive of one of these six companies replied to a query. “None in Sindh government from top to lower levels seem to be interested in taking up responsibility,” he observed.

Three of these six interested companies are Engro, Jehangir Siddiqui and Al Tuwariqi who are already involved in business activities and their business profiles, financial worth, experience and potential to invest is known to analysts and senior officials in the provincial and federal governments.

Market analysts said that a four-member committee headed by Syed Asad Ali Shah, a former Sindh government adviser on finance, was expected to have scrutinised and processed the investment proposals from all these six companies.

The World Bank has already agreed to offer a $26 million assistance in enhancing technical capability of Thar Coal and Energy Board (TC&EB) in processing of the documentation of first ever coal-fired electric power project whenever it commences.

But quite a few politicians in Sindh’s mega-size coalition cabinet have strong reservations on utility and efficacy of the TC&EB. The board is considered “another firing squad to shoot any investment plan” one such politician remarked in a relaxed moment.

“If Punjab government does not need any such board, why should there be one in Sindh to demoralise investors” is one line of argument. Another line of argument is that investment proposals for coal-fired projects “are too serious issues to be left for decisions to handful bureaucrats and politicians only” to quote a senior PPP leader.

In October this year Syed Asad Ali Shah had indicated that the four-member committee he was heading would complete scrutiny and processing of six investors’ proposals by end-December. Technical processing will be done by the consultants to be engaged by the board against $26 million World Bank assistance.

Mr Asad had indicated that if all went well it may take 12 to 15 months to achieve a financial closure of the project. Earliest, the first coal fired power project will come in generation cannot be before end 2011.

“Mr Asad’s assessment on financial closure and subsequent construction and commissioning of the project is too optimistic,” observed one of the senior executive of a company that has given investment proposal.

Given the current financial scenario emerging after economic meltdown in Europe and USA, plunging international oil prices and of course the impact of current Indo-Pakistan strained relations after Mumbai incident, it may not be easy to mobilise resources from international and Pakistani banks.