Dated:
30.7.2008
HANDOUT
CHIEF
MINISTER SINDH ADDRESS INTERNATIONAL CONFERENCE ON COAL
AT WASHINGTON.
Karachi,
July 30: A round table Conference was held in the office
of World Bank at Washington on 29th & 30th July, 2008.
The Conference was sponsored by World Bank and International
Fund for coal.
The Conference was presided by Chief Minister Sindh Syed
Qaim Ali Shah and Federal Minister for Water & Power
Raja Muhammad Ashraf for both days. Chief Minister Sindh
Syed Qaim Ali Shah gave an impressive opening speech.
On the first day of Conference Foreign Minister and Federal
Minister for Petroleum and National Resources Shah Mehmood
Quershi also addressed the Conference.
Prime Minister of Pakistan Syed Yousuf Raza Gillani gave
his speech on second day of Conference on 29th July, 2008.
Chief Minister Sindh Syed Qaim Ali Shah in his speech
said that Sindh being southern province of Pakistan is
famous for land of Sufis and Walis, and known for its
peace loving people. He said that Sindh province presents,
one of the most attractive destinations for investors.
Chief Minister Sindh maintained that there are vast coal
resources in the desert of Thar, which were discovered
in late 1980’s when some hydrologists of Sindh in
search of water for desert dwellers, found coal during
drilling operations. Chief Minister Sindh added that with
joint exploration exercise of United States Geological
survey and Geological survey of Pakistan, the Thar Coal
Lignite reserves were estimated to be around 175-billion
tons spread over an area of 9000 sq. kms. He informed
that total coal resources in Sindh are estimated to be
over 185 billion tons, considered sixth largest reserves
in the world.
Syed Qaim Ali Shah further informed that over 90% of Pakistan’s
coal reserves are in Sindh, as the Pakistan; located in
the middle of one of the fastest growth regions in the
world, surrounded by India, China and Middle East, has
been growing at the rate of 7% since last five years.
Chief Minister Sindh added that a major impediment to
Pakistan’s growth potential is acute power shortages.
He said that at present, Pakistan is largely dependent
on imported furnace oil for bulk of its power generation
that consumes large amount of foreign exchange resources
and causes severe trade and current account imbalances
as such the exploitation of Coal resources in Thar for
power generation is absolutely vital for Pakistan for
meeting its growing energy needs. He said that there is
no other choice for Pakistan but to develop Coal Resources
for its future power generation needs.
Syed Qaim Ali Shah further said that it was during the
previous government of Pakistan Peoples Party headed by
Shaheed Benazir Bhutto in 1993, when That Coal Reserves
came to lime light and the PPP initiated the program of
development of these resources on fast track basis but
unfortunately, after the PPP government, power generation
and exploitation of coal resources was not given adequate
attention. Chief Minister Sindh said in the last general
election, Shaheed Mohtarma Benazir Bhutto had included
Energy, especially power generation through Sindh’s
Coal Resources, as one of the cornerstones of Party manifesto.
He added that Shaheed Benazir Bhutto, who gave her life
struggling for the rights of the people of Pakistan in
Last December, decided to provide the institutional structure
to facilitate exploration, development of Infrastructure
in Thar Coal Field, mineral licensing and regulation as
such the infrastructure succeeded in development of this
part of Thar Desert from an inaccessible and inhospitable
area into a workable atmosphere for mining operations.
Chief Minister Sindh added that to facilitate investors,
road networking connecting all major cities has been completed
upto Coal Field; and electricity is available there while
Optical Fibre Line is available upto Coal Field / project
site. Besides, Water Supply is also available at Coal
Field and surrounding areas, he said.
Chief Minister Sindh said that an Air Strip is being constructed
while to make Thar Coal Field accessible for development
and transportation, schemes for construction of railway
line has been approved.
Syed Qaim Ali Shah further said that the department of
Mines and Mineral, Government of Sindh through Sindh Coal
Authority, have intensively explored an area of 455 sq
kms. while further explorations are being undertaken to
increase availability of blocks with complete data for
potential investors. He said that the present provincial
government recently advertised an offer for Public-Private
Joint Venture in Thar Coal Mining for which the response
from both local and foreign investors has been enthusiastic
and there are several investment proposals under consideration
of the Government of Sindh in Thar Coal mining. “We
have now formed that Thar Coal and Power Board. This will
ensure that the investors will not have to run for paper
work from one Department or Ministry to others, and will
provide one window facilitation. This Board is headed
by myself, and includes as members, relevant federal and
provincial ministers and secretaries so as to address
all matters in an expeditious manner. Its role includes
the following, with focus on saving investors from run-around:
Attract investment for coal mining & gasification
in Thar. One-stop organization related to development,
leasing and sub-leasing at Thar, mining, development of
clean coal technologies, R&D activities, he maintained.
Syed Qaim Ali Shah further said that decision-making body
for developing & implementing policy, guidelines,
road-maps, and initiatives for coal development &
mining. Repository for all databases, studies, etc. collaboration
with Private Power & Infrastructure Board (PPIB) for
processing of Integrated Coal Mining/Coal Gasification
power generation projects after approval by the Board
i.e, issuance for Letter of Interest (LOI), negotiation
/ execution of agreements for power generation, etc. have
been initiated.
Syed Qaim Ali Shah further added that it imperative upon
the Government of Sindh to open up its coal resources
for the country’s needs as Coal has to be exploited
at a very large scale for meeting the country’s
energy demands which includes demand for electricity as
well as for fuel through coal-to-liquid technology and
by gasification to conserve the country’s fast depleting
reserves of natural gas.
Chief Minister Sindh said that the desert dwellers of
Thar are the most peace loving people and the area has
almost zero crime rate. It has several other viable mining
investments such as in Thar’s Granite reserves spread
over an area of 2000 sq. kms. he said. He further said
that the development of the Thar resources would provide
a certain degree of long-term energy security to Pakistan
and the electricity generation potential of 100,000 MW
based on estimated consumption of 536 million tones of
coal per year, is the most important fuel
Resources
used for provision of coal base load capacity in the system
supplementing gas based capacity. Further, use of Thar
reserves for power generation would help in reducing excessive
reliance on imported fuel thereby reducing the pressure
balance of payments of the country and further more, since
this resource is located close to Indian Border, there
is a great potential for export of power to India to meets
its rapidly growing power needs, he added.
Chief Minister Sindh on behalf of the Government of Sindh
and Department of Mines and Minerals and the People of
Sindh, welcomed all those interested in having a look
at the Sindh’s Coal Resources, especially the desert
of Thar and its Coal reserves for establishing power generation
plants or for other purposes. He also as Chief Executive
of the province assured his full support and assistance
to prospective investors in Coal Resources of Sindh and
said that full access to all the data and information
will be made available with the Department of Mines and
Sindh Coal Authority.
Conference was attended by AES Corp, International Power
(UK), Engro, Zolro Energy, Akkadian private Ventures,
Apex Energy, Agha Khan Fund for Economic Development,
Lucky Cement, Oracle coal fields (UK), Zain Consulting,
Sk Hydro, Cathay Oil and Gas, Petromaxx, Fatima Group,
Barrick Gold Corp, Global Steel Holding, Hassan Associates,
Gas Turbines, Habibullah Energy, Moseley Horizon, Tata
Power co, Hong Puong energy, Cavaliar Energy and and Defence
group, Global Eddison, APR Energy, Zima Inc, Granada services,
Madhu Vuppurl, Weddel and Reed Investment, Johangir Suddiqui
Group, Islamic Dev Bank, Nordic investment Bank, Japan
Bank of Intl, Export Import Bank of USA, US Trade and
Dev Agency and US Dept of Energy. There was large interest
and response shown by many firms and assured their participation
in the project.
HANDOUT
NO… (ABM).