Financial Closing of Lucky Electric Power Project Declared!

The federal government has declared the financial closing of the 660MW Lucky Electric Power Project which would use on Thar coal. The powerhouse would go in commercial operations by end of March 2021.
The documents of the financial closing were formally signed by Private Power & Infrastructure Board (PPIB) Managing Director Shah Jahan Mirza and Lucky Electric Coal Power Chief Executive Officer I. H. Haqqi. The signing ceremony was also witnessed by caretaker Minister for Energy, Barrister Syed Ali Zafar.
The project will be located at Port Qasim near Karachi and based on local coal from Thar. The project is estimated to cost $1.081billion and will be equipped with supercritical technology. Seawater will be utilized for cooling the plant.
Lucky Power Project is being financed through the debt-to-equity ratio of 75:25. The consortium of lenders includes Habib Bank, United Bank, National Bank, Bank Alfalah, Askari Bank, Soneri Bank, The Bank of Punjab, Meezan Bank, Faysal Bank and Dubai Islamic Bank.
Upon financial closing, PPIB will also issue sovereign guarantee on behalf of the government in favor of the project company to secure the payment obligations of the power purchaser.
The Sindh Engro Coal Mining Company which is the leaseholder for execution of mining operations for coal extraction in the Thar coalfield, Block II will supply coal to the project while the electric power generated from it will be sold to Central Power Purchasing Agency-Guarantee under a 30-year power purchase agreement.