The developers of a barge-mounted power project to be built at Port Qasim have achieved preliminary financial close for the project. Financial adviser First Capital Securities Corporation (FCSC) says that the local WAK Orient Power & Light (WAK OPL) has received formal commitments for guarantees worth $427 million.

The Maritime Administration Agency (Marad), part of the US’ Transportation Department, has provided guarantees worth $402 million. National Bank of Pakistan and the National Development Finance Corporation have provided guarantees worth $25 million, to be denominated in local currency. The finance guaranteed by Marad is to be raised as an international syndicated loan and FCSC says it is now in talks with a number of international banks to lead the syndication. Syndication is scheduled for February 1997. WAK OPL is to provide an equity stake of $106 million.

The engineering, procurement and construction contract was awarded to Raytheon Engineers & Constructors and Westinghouse Electric Corporation, both of the US. The 450-MW plant will be built in the US and will be transported complete to Pakistan (MEED 19:7:96).