8 commercial banks agree to raise funds for power project
Eight commercial banks have signed a contract with Sindh Engro Coal Mining Company (SECMC) to provide financial resources to in a coal-based power project amounting to $50 billion. These banks include Habib Bank Limited (HBL) United Bank Limited, Bank Alfalah, Faysal Bank, Askari Bank, Sindh Bank, Meezan Bank and Bank of Punjab which signed a agreement for showing their interest to raise funds for the project. The Master Shareholder Agreement will cover the entire common equity subscription of SECMC's Thar Coal Project and demonstrates the confidence of leading sponsors in the project. The Financing agreements worth Rs 50 billion signed with leading banks of Pakistan will ensure availability of entire local financing at agreed terms and conditions.
Khursheed Jamali, Chairman Board of Directors, SECMC further added, "This major breakthrough has only been made possible through the instrumental support provided at all forums by Government of Pakistan, Government of Sindh, Engro, Thal Limited (House of Habib), Habib Bank Limited, HUBCO, CMEC (China Machinery Engineering Corporation), UBL, Bank Alfalah, Faysal Bank, Askari Bank, Sindh Bank, Meezan Bank and Bank of Punjab. A number of top local industrial groups and investors that have joined hands with SECMC today which is a testament to the remarkable progress that has been made on the Thar Coal Project since its inception."
Amidst the presence of Chief Minister Sindh, Syed Qaim Ali Shah - and officials of Sindh Engro Coal Mining Company (SECMC) a master shareholders' agreement was signed between Engro, Thal Limited (House of Habib), Habib Bank Limited, HUBCO and CMEC(China Machinery Engineering Corporation).
In addition, SECMC has also signed Implementation Agreement with the Government of Sindh which entails approvals and commitments required from Government of Sindh for the project. Chief Minister Sindh while speaking at the occasion appreciated the hard work and dedication shown by the directors and management of the company. He further said that commercial production of Thar Coal will transform the energy scenario of Pakistan and Thar region. Furthermore, he thanked the Prime Minister of Pakistan for the continued support of this project.
SECMC has achieved substantial progress on the Thar Coal Project during the 2014 - 2015. Firm EPC contracts have been signed, all security packages completed and the physical work at mining site started with 3 million m³ overburden already been removed since May 2014. Company is expected to start producing coal by 2018.