AES Pakistan Private expects to finalise plans in the next month to build two private power stations.

The initial underwriting agreement for a $208 million commercial loan for the 350-MW Sidhnai project was signed on 25 January. The loan was arranged by Japan’s Bank of Tokyo and will close sometime in the next month, an AES source says. The station will cost an estimated $350 million and is being financed by a 70:30 debt/equity mix (MEED 16:12:94). AES is the local subsidiary of the US’ Applied Energy Services. AES expects to award engineering, procurement and construction (EPC) contracts during March. The plant is due for completion by November 1997.

AES is also in the process of finalising the EPC contract for a 350-MW power station at Muzaffargarh. An initial agreement was signed with a group of Japanese companies led by Mitsubishi Heavy Industries and Nichimen Company in late 1994 (MEED 28:10:94).

The $350 million project was to be financed by the same debt/equity mix, with Bank of Tokyo arranging a $200 million loan from Japanese investors and $50 million from the International Finance Corporation (IFC). AES says it is also considering an export credit package linked to the EPC contract.