Panel Formed to Expedite Thar Coal Conversion for Jamshoro Power Plant

Thar-coal

ISLAMABAD: Prime Minister Shehbaz Sharif has established a three-member panel to deliberate on the conversion of the 660-MW Jamshoro Power Plant (JPP) to utilize 100% Thar coal. The committee includes Federal Minister for Power Sardar Awais Khan Leghari, Minister of State for Finance Ali Pervaiz Malik, and SAPM on Power Muhammad Ali, with provisions to include additional members as required.

Terms of Reference (ToRs):

Assess earlier directives and developments on JPP’s conversion to Thar coal, including its Commercial Operation Date (COD).
Finalize and communicate a clear course of action on the Power Purchase Agreement (PPA) with CPPA-G or K-Electric.
Address any related issues or concerns.
In July 2024, K-Electric proposed the establishment of a Project Steering Committee to review the conversion proposal submitted by M/s Harbin Electric International (HEI). HEI affirmed the technical feasibility of transitioning JPP to 100% Thar coal, a move seen as critical for energy security and cost-efficiency.

The Asian Development Bank (ADB) has extended the project loan deadline to December 31, 2024, with a strict commissioning target to unlock remaining payments of $110 million tied to contractual milestones. The final extension underscores the urgency of completing the conversion and associated agreements.

Key stakeholders, including K-Electric, Jamshoro Coal Power Limited (JCPL), and GENCO Holding Company Ltd (GHCL), are expected to finalize the PPA by August 15, 2024. Delays could risk disbursements and jeopardize the project’s timeline.

The conversion to Thar coal aligns with Pakistan’s strategy to leverage indigenous resources for sustainable energy production while reducing reliance on imported fuel.

Story by Mushtaq Ghumman

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