The financing agreement on the coal-power integration project in Tar Block 2 of Pakistan that was contracted and constructed by China Machinery Engineering Corporation has recently been signed in Beijing. ICBC will act as the financial adviser for the project, and organize a USD 1,465 million syndicated loan with other financial institutions from China and Pakistan, which will be used as the engineering expenses for the coal mine and power station. This project is not only the first coal-power integration project in China-Pakistan Economic Corridor, but also the largest coal-fired power project in Pakistan.

Tar coal-power integration project is a key infrastructure project along the “Belt and Road” prioritized by China and Pakistan with a total investment of USD 2 billion. As the sole Chinese commercial bank with operating institutions in Pakistan, ICBC has been actively pushing forward the project and providing financial advisory and other services. Besides, ICBC designed an innovative credit insurance plan for the project, and successfully introduced a number of financial institutions to meet the financing needs of China and Pakistan for the project.

The coal mine used in the Tar coal-power integration project is among the largest coal reserves in the world. The project will help Pakistan ease electricity supply and demand contradiction, and generate remarkable economic and social benefits.