ISLAMABAD: The government of Pakistan has issued its guarantee in favour of the Engro Powergen Thar Limited (EPTL), thereby recognising the achievement of financial close of the mining and power projects being undertaken by Sindh Engro Coal Mining Company (SECMC) and EPTL in Thar Block II. Commemorating this important milestone, a 500 KV D/Circuit transmission line from Thar to Matiari by the National Transmission and Despatch Company will also be established. This significant feat would mark a new era for energy security in Pakistan and the realisation of Thar dream. For the first time ever, the country will now rely on its indigenous coal reserves in Tharparkar – for future energy security – an endeavour, which after decades of relentless pursuit has finally been brought to fruition. With all necessary formalities for phase 1 for both projects completed, initiation for phase 2 for mine and power plant expansion by HUB Power Company and Thal – Nova Power Limited is also underway. SECMC, a joint venture company with the Sindh government, Engro Powergen and Affiliates namely Thal Ltd, Hub Power Company, Habib Bank Limited, China Machinery Engineering Corporation (CMEC) and State Power International Mendong (SPIM). This company will be responsible for extracting 1.57 billion tonnes of lignite coal available in its allocated area of Block II in Tharparkar. During the first phase of the project, a mine of 3.8 million tonnes per annum capacity will be developed by SECMC. This coal will be utilised by a mine-mouth power plant of 2×330 MW, a project which is being established by Engro Powergen Limited. COD for phase 1 of both projects is expected to take place by 2019. The federal government’s role has been instrumental to the success of the project to date. The provision of $700 million and the project’s addition to the China-Pak Economic Corridor (CPEC) earlier last year paved the way for achieving financial close in a timely fashion. A landmark PPA and IA were signed by EPTL last year with excellent support provided by PPIB. Other government departments including Prime Minister Secretariat, Finance Ministry and Ministry of Water and Power have also played a pivotal role. The provincial government, being a majority shareholder in SECMC (51%), has extended immense support and has been instrumental in steering the project to a successful start. As the JV partner and developer of the Mining Project in Thar Block II, the Sindh government has been working diligently on all necessary INFRASTRUCTURAL DEVELOPMENT and facilitation. The Sindh govt has entered into an Implementation Agreement with SECMC to provide all required infrastructure to facilitate the Thar project at a cost of $600 million. Infrastructure development is already underway with widening and rehabilitation of the road network progressing at a rapid pace, including the expansion of bridges, culverts and bypasses of small cities. An airport facility is also under construction in Islamkot. In December 2015, another important milestone was achieved when the Sindh government entered into a Water Utilisation Agreement with EPTL to secure water source for the functioning of the power plant. The mandate to regulate coal pricing has been vested with Thar Coal and Energy Board (TCEB). Last year, in response to tariff petition by SECMC, the board determined tariff for initial 3.8 mtpa mine capacity and also approved provision for expansion. NEPRA had already issued a detailed upfront tariff for Thar coal-based power projects in July 2014.Both regulatory bodies have championed the cause of Thar for the benefit of people of Pakistan. Several renowned local and international organisations, including Hagler Bailly, and SRK UK, were engaged to conduct feasibility and socio-economic impact assessments of its projects. These studies together with NOC issued by Sindh Environmental Protection Agency will ensure compliance with all National Environmental Quality Standards and the best industry practices available as per World Bank guidelines. During the project, two villages are expected to be relocated within the block. All community consultations, census and socio-economic baseline have been conducted while some of the leading town planners in the country have been engaged to design state-of-the-art model villages with modern amenities. SECMC has developed a resettlement action plan approved by the Sindh government based on international policies. Development in the region will bring with it the creation of employment opportunities, entrepreneurship activity, educational institutions, medical facilities and infrastructural development. This project will be a game changer for Pakistan. The project has the capacity to not only address the severe power shortage crisis but also bring with it energy security to the country for its future generations.