World Bank to give $30 million for Thar coal project: agreement signed with Sindh gov

[LahoreEstate]

AFTAB CHANNA
KARACHI (May 31 2009): The Sindh government and the World Bank (WB) on Friday night signed the long-awaited $30 million agreement for the proposed 'Thar Coal and Power Technical Assistance Project' (TCAP). Sources said that under the agreement, which could be possible because of timely interference of President Asif Ali Zardari during his recent visit here, the WB, would loan $30 million to Sindh government in four yearly tranches with a ten-year payback time.

They said that out of total amount, $25.8 million would be provided to the provincial Mining Board, and the remaining $4.2 million will be given to the Private Power and Infrastructure Board (PPIB) to provide technical assistance for the development of Thar coal.

They said the WB had set a condition to get the proposal approved from the Executive Committee of National Economic Council (Ecnec) by June 8, 2009, but it was being delayed since March. Sindh Chief Minister Qaim Ali Shah had apprised the President about the delay during his recent visit to the city, which led to its approval, they added.

Sources said that the chief minister, who is also Chairman of the Coal Development Board, had also informed Advisor to Prime Minister on Finance Shaukat Tarin in writing about the delay in approval by Ecnec, but no progress was made.

They said that the Bank has included the scheme, a joint provincial and federal level effort, into its Board's presentation scheduled for June 30, 2009, adding that the activities would be implemented in parallel by the province (to facilitate the coal mining), Thar Coal Block No 1, having a surface area of 122 sq. km, and the federal government (to facilitate coal-to-power development).

They said that the bank has also asked the Ministry of Water and Power to set up a Project Support Unit within the PPIB, which would supervise consultants' work, ensure that implementation of federal component is on track and provide liaison with the project steering committee established by the Sindh government, Project Monitoring Unit in Karachi, Thar Coal and Energy Board and the World Bank.

They said that the bank's assistance would be provided for geographical survey and date interpretation related to Thar coalfield and in greater detail for Thar Block No 1, supervision/technical assistance with the interpretation of the regional hydro-geological study, developing overarching coal and coal bed methane t power sector/legal/regulatory/safeguards including those related to mineral licensing and tendering procedures.

The bank would also help attracting private investors to develop Thar Block 1 besides finalising bid methodology for a coal mine power plant, information memorandum and transaction and transaction of principles and intentions policy document.

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