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EUR 170mn Granted by Pak Railway for Thar Block II Project

Monday in Karachi, Pakistan Railways approved 170 million Euros for a project to connect Thar Coal Block II to the new Chorr station on the Hyderabad-Mirpurkhas rail link (December 20)

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According to the sources, the 105-kilometer-long project will be entirely funded by Foreign Direct Investment (FDI). The Memorandum of Understanding was signed by Railway Constructions Pakistan Limited (RAILCOP), M/s Al Furqan Holdings Private Ltd, and BIL Pakistan Pvt Ltd. (MoU). On this occasion, RAILCOP Chief Executive Officer (CEO) Syed Najam Saeed disclosed that the project will connect Thar coal mines to the national railway network. The fast track link will increase the delivery of Thar coal to electricity projects being constructed as part of the China Pakistan Economic Corridor (CPEC).

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According to the firm, this project will increase communication and prosperity in rural Thar areas. PR sources indicate that the project will be developed using the Public-Private Partnership (3P) approach. The entirety of the project’s funding comes from UAE Al-Furqan Holdings. The project established new procedures that will lessen the need to relocate current infrastructure to the new site.

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