€170mn FDI to Pakistan for construction of 105-km rail track for Thar Coal
An MOU was signed between RAIL COP, Railway Constructions Pakistan Limited, M/s Al-furqan Holdings Private Ltd and BIL Pakistan Pvt Ltd to construct a new 105-kilometre rail track connecting Thar Coal Block II with New Chorr station on the Hyderabad-Mirpurkhas Rail link.
The project is valued at euro 170 million and will be executed under 100 percent foreign direct investment by Al Furqan Group UAE, the CEO RAIL COP, Syed Najam Saeed, said on the occasion of MOU signing Ceremony.
Talking on the occasion, he said that the project would provide new rail link from Thar Coal Mines to National Railway Network for ensuring availability of indigenous Thar Lignite fuel throughout Pakistan.
It will give maximum coverage of all Thar Coal Mine Blocks and far-flung population centers in Tharparkar district while avoiding any existing infrastructural relocations.
Syed Najam Saeed re-affirmed the mission of Federal Railways Minister Muhammad Azam Khan Swati in transforming Pakistan Railways into a profit generating entity with such PPP (public private partnership) projects. He also thanked Railways Secretary/Chairman Habib-ur-Rehman Gilani for his continuous support for the project.
Furthermore, Pakistan Railways and on behalf of RAIL COP, Syed Najam Saeed extended special gratitude to Tauseef Zaman, CEO, BIL Pakistan (private) Limited for his role in the project.
It was also mentioned by the CEO RAIL COP that the vision of Prime Minister of Pakistan, Imran Khan, was to attract FDI with attractive incentives and policies to the investors in a competitive business environment.
Pakistan Railways extends its gratitude to Ministry of Foreign Affairs for its endeavors to attract foreign investment in the country. This particular investment was possible with the efforts of Faisal Abro, an officer of the Foreign Service of Pakistan, posted at the Permanent Mission to OIC who played an instrumental role in arranging this FDI of €170 million.
Shedding light on the project details, Syed Najam Saeed said that with every passing day, the necessity of Rail Link to connect Thar Coal mines with the existing railway system is gaining priority and urgency. All the relevant authorities and stakeholders are preferring and urging to adopt rail as a primary mode of transportation for Thar coal as compared to highway mode. This new rail link would be helpful in the coal driven energy projects executed under China Pakistan Economic Corridor (CPEC).
The project will create thousands of jobs, will boost investment in other associated projects, enhance export of coal and will have positive impact of macro-economic indicators.