8 com­mer­cial banks agree to raise funds for power pro­ject

The Pak Banker - - FRONT PAGE -

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.

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