The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Guys this share is a total multibagger as the others have said, the ****stanis are not on the normal Fdi rader, so anyone who invests get disproportionate returns ??
These returns secured by the relationship the two countries ,so very safe. Sahiwal power plant, investment paid off in 3 years, minimum term 25, the government shafted lol
Never a fan of lignite to electricity, but ctg and ctl are fractionally cleaner, hopefully we can get a CPEC style deal like Sahiwal, rinse them and get a proper multibagger ??
retry with credit to Bloomberg
After spending decades tackling electricity shortages, ****stan now faces a new and unfamiliar problem: too much generation capacity.
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The South Asian nation’s power supply flipped to a surplus last year after a flurry of coal- and natural gas-fired plants were built, mostly financed by the Belt and Road Initiative launched by Chinese President Xi Jinping in 2013. ****stan is slated to have as much as 50% too much electricity by 2023, according to Tabish Gauhar, special assistant to Prime Minister Imran Khan for the power sector.
That is problematic because the government is the sole buyer of electricity and pays producers even when they don’t generate. To help tackle the issue, the government has negotiated with producers to end that system, lower their tariffs and asked them to delay the start of new projects, according to Gauhar. It is also trying to convince industries to switch to electricity from gas.
“We have a lot of expensive electricity and that is a burden,” he said.
While the Chinese financing and the surplus is a welcome change after years of shortages that left exporters unable to meet orders and major cities without electricity for much of the day, two main problems remain. The first is a creaking network, and the second is the need to supply cheaper power while keeping emissions in check.
“****stan has overcapacity, yet it still has power shortages because of the unreliability of the grid,” said Simon Nicholas, an analyst at the Institute for Energy Economics & Financial Analysis. “They haven’t invested in the grid the same way they’ve invested in power plants.”
The last nationwide blackout happened just last month after an outage at the country’s largest facility. While the new plants have also boosted coal generation to a record fifth of the power mix, ****stan plans to increase the share of wind and solar to 30%, while another 30% will be generated from river-run dams.
****stan will pay private power producers 450 billion rupees ($2.8 billion) in overdue electricity bills in a deal to reduce future tariffs. The government targets to pay 40% of that bill by the end of February, with the second payment slated before December, according to Gauhar. A third of the payment will be made in cash, with the rest in fixed income instruments, he added.
About 8 gigawatts worth of government-owned power plants will also have tariffs reduced. And ****stan plans to negotiate lower tariffs for mining and power generation at the Thar coalfield, said Gauhar.
The government aims to delay about 10 gigawatts worth of planned power projects, including coal and wind plants, since there won’t be any need for them next year, said Gauhar.
Good to see the refocus away from electricity generation and more to gold and CLG
Good article on Bloomberg
https://www.bloomberg.com/news/articles/2021-01-27/****stan-
struggles-to-tackle-an-unfamiliar-glut-of-electricity
Chelcele, we all have the same concerns, but you are asking for reassurance from ORCP / Naheed for things out of their control. HH plans and the LOI, setting a deadline for the latter, where Chinese government input is critical, is a recipe for disaster.
Ignoring the negativity in this post, massive profits available in Thar coal for investors, rock on.
https://tribune.com.pk/story/2279438/thar-coal-too-little-too-late
Very positive RNS
Please note the weekend power cuts are not negative or positive for the project, they are a reflection of a fault at a power station and the poor state of the transmission system, if our project had been up and running would have made no difference to the outage.
CF, this needs to be put into context. Australia has asked that an international investigation be launched into the source of Covid19 and the handling of it, this has upset the Chinese so they have banned Australian coal and other comodities from Australia.
The Chinese are all powerful, its their way or no way, Look at the Uighers in China, literally concentration camps for Muslims, but the silence from the Muslim world is literally deafening!
If and when the project is backed by China, happy days, no one can stop it and we will be quids in.
Thanks Adamaddd , on what basis have you made this assessment?
I think I have posted facts, but appreciate its not what people always want to hear .
Do explain...
Previous feedback on you has not always been very positive, happy to dig it out if you have such a short memory.
Kind Regards
Agreed if the power plant is agreed, the riches are handsome for investors and is mostly inter governmental.
Here is what it comes down to: coal-fired electricity in Pakistan is not actually cheaper than any other source of electricity, even natural gas-fired power plants, including those that run on imported re-gasified liquid natural gas (RLNG). This is for three reasons: the Chinese manufacturers of coal-fired power generation plants have charged too high a price from the Pakistani companies setting up these plants, the government gave away too lucrative a set of contracts on allowed profit margins and investor returns to coal-fired power generation companies, and the government allowed for over-building of capacity, which means that the country is now paying for idle power generation units, which increases the per unit cost of electricity used.
https://profit.pakistantoday.com.pk/2020/12/20/a-welcome-rollback-on-coal-fired-power/
Oopps took you too literally ...soz
Just seen this article from yesterday, IK as a politician is hot air and lives on a roundabout as far as i am concerned, but a leading business magazine supporting his comments, would require Nadeems input
https://profit.pakistantoday.com.pk/2020/12/20/a-welcome-rollback-on-coal-fired-power/
As a poster recently said , the value of this company currently is half the price of a house in the top road in London, why would the ST be interested? As far as I am aware she hasn't destroyed the value of the company in her tenure, maybe oversold short term prospects, but that's common for early stage companies.
Apologies if i have missed a article in the ST about her previously.
No one knows why Glen Lewis left, looks ominous on that front for me, but jumping to conclusions is also dangerous.
Naheed is politically connected and wealthy, these mean a lot in getting a project over the line in PK.
Hi LSC
I don't think there is anything such as 'clean coal' transforming it into an energy source such as hydrogen or Syngas or DME are all equally polluting, just displace the pollution from cities etc.
Must remembered, Thar is also lignite,(brown coal) not high calorific coal., such as that in Indonesia, so you need process a lot more to get the same amount of energy.
DME is unlikely to be cost effective in Pakistan, if higher quality coal in Indonesia isn't .
https://www.reuters.com/article/asia-coal-indonesia/indonesias-coal-gasification-programme-needs-subsidy-experts-idUSL4N2IB1MQ
Am sure this is just the normal lip service to the environment, does anyone think this affects the project .
Prime Minister Imran Khan spoke to those leaders to set out Pakistan’s commitment and leadership on nature-based solutions. But then he went further and took the bold step of announcing a moratorium on new coal power plants.
https://www.dawn.com/news/1595470/planets-future
good buying opportunity at this price, can't get too much lower? thoughts
WB is pushing Pakistan to abandon Lignite / Coal https://www.dawn.com/news/1589757/expand-renewable-electricity-supply-wb
Before any of the rampers descend, yes I do hold shares and yes this is not like back home, this is a bulletin board for honest discussion, not just for those who want one view expressed. . look at the ADVFN bulletin board, see the difference between maturity and milk !