Enron Corporation of the US has signed an agreement to build, own and operate a 754-MW residual oil power project in Punjab.

Construction is scheduled to begin this year with commercial operation commencing by early 1999. The power plant will have two generating units and will be the first to meet 1995 World Bank standards for emissions.

The government has guaranteed a power purchase agreement signed by Water & Power Development Authority (WAPDA), under which WAPDA is obliged to buy power from the plant for 30 years.

Enron is now seeking to complete a financing package for the plant, aiming to reach financial close by mid-1996.