AES Pakistan Private signed implementation agreements for two private power projects worth $700 million at the end of September.
Construction of the first private power plant is expected to begin by early 1995. A group of Japanese companies led by Mitsubishi Heavy Industries and Nichimen Company is to carry out the engineering, procurement and construction contract for a 350-MW station in Muzaffargarh, Punjab. The other bidders were the Anglo-French GEC-Alsthom Group and Japan’s Marubeni Corporation with Germany’s ABB Kraftwerke.
AES Pakistan Private is the local subsidiary of the US’ Applied Energy Services (AES). The equity element of the $350 million project will be $100 million. Bank of Tokyo is to arrange loans of $200 million from Japanese investors, and $50 million is being provided by the International Finance Corporation, the World Bank’s private-sector investment arm (MEED 19:8:94).
The second implementation agreement is for a 350-MW station at Sidhnai, about 100 kilometres northeast of Multan, Punjab. Agreements for power purchase and fuel supply have not yet been signed but are expected to be duplicates of those signed for the first project at Muzaffargarh. Project costs of $350 million will be covered by a similar debt/equity mix. AES plans to appoint a contractor by the end of November.