A German-US joint venture is to invest in a 350-MW power station in response to government incentives for private power projects. Siemens of Germany and a US company identified as Rousch International say they are looking for a location and are expecting approval for the project soon.

This is the third large-scale project planned under a new policy to encourage private investment to boost power generation. The government will buy each kWh produced for $0.065 - or for $0.090 if a plant is completed before 1997. Producers are exempt from import taxes and customs duties.

Other projects in the planning stage include a 350-MW oil-fired plant in Baluchistan to be set up by the local Fauji Foundation with the Hong Kong-based Canamerican. Italy's Ansaldo Energia will engineer, supply and install the plant (MEED 25:3:94). A group comprising US companies Tenaska International and Hawkins Oil & Gas and the UK's Midlands Electricity Board is planning a 580-MW gas-fired generation plant at Uch gas field (MEED 13:5:94). Work on the first private power station, at Hub river, is continuing and sponsors are negotiating a final financing package (MEED 18:3:94).