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Power plants at Thar Coal: Czech Republic unlikely to invest 500 million euros
KARACHI (June 25 2010): The Czech Republic is unlikely to invest 500 million euros for setting up of 300 to 600MW coal-fired power plants at Thar Coal due to lack of response from the Sindh government, it is reliably learnt. Well-placed sources told Business Recorder on Thursday that the WTC Group of the Czech Republic had shown keen interest in bringing investment of at least 500 million euros at Thar Coal for coal-fired power plants of 300 to 600 MW.
The joint venture (JV) between Al-Abbas Group and the Sindh government was also proposed on the basis of 60:40 equity ratio. However, the Czech Republic has warned Sindh government of leaving the project citing lack of response from bureaucracy as the main reason, they added. To materialise the project, the chief minister had also constituted a committee with Additional Chief Secretary (Dev) as chairman and secretaries of finance, law and coal and energy development department and the secretary to CM as committee members, they said, adding that no progress was made on the JV agreement due to apathy of authorities concerned.
Sources said the lack of interest of Sindh government officials towards the country's vast coal reserves would leave a negative impact on the country's credibility. It seems that the Sindh government is not sincere in facilitating foreign investors, sources said and added that WTC Group has recently expressed concern over the lack of response by Sindh government and warned of leaving Thar Coal project like China did.
"We would like to inform you that thus far we have not received any information from you. We are beginning to believe that the government of Sindh is not taking 'coal' as a serious asset for its province and for solving energy crisis in Pakistan," according to a letter forwarded by Technical Director, WTC Group, Karel Galuska to Secretary Coal and Energy Development Department Aijaz Khan on June 21, 2010.
"As you are aware that WTC is extremely serious about this project, the Director of EGAP Petr Martasek himself visited Pakistan in December 2009 and met Chief Minister Qaim Ali Shah. During that meeting the director saw Shah's leadership in action and his endorsement of this project by suggesting that the GoS will come in as 40 percent equity partner," the letter says.
"Based on that positive meeting, Martasek continued to follow up the progress of the JV agreement. He is very discouraged to find out that after 6 months government of Sindh is still not able to sign off on the project which is supposed to be completed in 24 months," it added.
"We truly hope you understand our position and that bringing in funding of approximately 500 million euros at this time in Pakistan is not an easy task. We truly believe that this venture will open door for all coal exploration in Pakistan and this will be the first coal mine and large coal-fired power plant project."
However, with the way the progress is being made including lack of response form the government of Sindh, we fear that history might repeat itself and just like China left Thar in the past, Czech Republic may also leave Pakistan," the letter said.
