Sindh eyes $12 billion foreign investment
KARACHI (August 07 2008): Sindh government is expecting $12 billion foreign investment from Germany, Poland, Australia and US in the Thar coal power project, the work on which would be started within the next 2-3 months.
Sindh Chief Minister Qaim Ali Shah stated this while addressing a press conference at Chief Minster House on Wednesday, flanked by Home Minister Dr Zulfiqar Mirza, Information Minister Shazia Marri, Revenue Minister Murad Ali Shah, Power and Irrigation Minister Saifullah Dharejo, Local Government Mazharul Haq, Member of Thar Coal and Energy Board (TCEB) Asad Ali Shah, Adviser on Mines and Minerals Khattu Mal Jewan, Nafees Siddiqui, Rashid Rabbani, Waqar Mehdi, Faisal Raza Abidi, Ali Nawaz Shah and other PPP leaders.
"Many companies from Germany, Poland, Australia and US have shown their willingness to invest in the Thar coal project. We expect around 10 to 12 billion dollars investment," he said.
Terming as historical the recent international roundtable in the US, jointly organised by the Government of Pakistan and World Bank, he said that unexpectedly 150 investors from 32 countries had participated in the two-day conference. He said some developed countries, like Germany, Poland and US, which are generating 50 percent electricity from coal, had also assured Pakistan of their full co-operation in the coal-based power sector.
The CM said that according to an estimate, within the next 10-12 years, 100,000 megawatt electricity could be generated from 175 billion tons coal reserves in Thar, which is spread over 9,000 square km area. "But this can not be done by a single company, as it requires billions of dollars investment," he added.
The project, he said, would not only help Pakistan overcome the power shortage but would also create direct and indirect employment opportunities for lakhs of people. Terming coal a cheaper and sustainable energy source, he said that road, electricity, water and other facilities had already been provided at the work sites in Thar. He said railway network and air route would also be established to the underdeveloped area, which would subsequently be linked with Keti Bandar.
He said his government had almost completed groundwork at six identified sites in Thar and was expecting to generate 1000MW of electricity from each of those sites. The chief minister reiterated that huge coal reserves in Thar belonged to the people of Sindh and no one could occupy or take the energy-rich natural resource away from it. "As per 1973 Constitution the federal cabinet had once-and-for-all decided that coal is a provincial subject," said the chief minister.
The federal government as a goodwill gesture had not only authorised the Sindh government to explore coal in Thar, but also to undertake power generation projects, which is basically a federal subject, in the province, he said. "The federal government would only support us and participate in all deals to be signed in this respect," he said.
He said the TCEB, which would provide one-window facility to investors, was also constituted by the Sindh government with majority of its members representing the province.
"Earlier, a notification had confused the people, but all misunderstandings should now be removed as it is my clear message to people of Pakistan that Sindh government is undertaking this project with the support of federal government," he said. When asked if he was supportive of the claims of his coalition partners in Sindh government on 'Talibanisation' of the province, the chief minister replied: "Our partners should be satisfied with Wednesday's press conference of the Home Minister, and if they have some proof they should share with us."
Business Recorder [Pakistan's First Financial Daily]
