PAKISTAN: Kabirwala power gets financial commitments

07 June 1996

The Fauji Kabirwala Power Company (FKPC) has received financial commitments for its 144-MW combined-cycle power station in Punjab province. Formal financial close is expected to follow in the next few weeks.

FKPC will develop, finance, own and operate the plant.

The Asian Development Bank (ADB) and the Export Development Corporation of Canada (EDC) have signed agreements for debt financing totalling $132 million. ADB is to provide a direct loan of $32 million and a further loan of up to $65 million under its co-financing scheme. The $65 million will be arranged by ABN AMRO. EDC is to provide export credits of up to $35 million. The $132 million package includes a standby facility of $7.5 million.

A further $42.5 million is to be raised as equity. Horizon Energy, a wholly-owned subsidiary of the National Fuel Gas Company (NFGC), Sceptre Power and Intrag, all of the US, have formed KPP Investment, which will take an equity stake worth $18 million. The local Fauji Foundation is to take just over $19 million and ADB has agreed to take a $5.3 million stake.

The plant will use the indigenous supply of low British thermal unit (BTU) gas. The gas has no other commercial or domestic use and the project will reduce the countrys dependence on imported energy, says NFGC.

Construction is scheduled to begin in September. National Energy Production Corporation of the US will provide engineering, design construction, start up and testing services. The plant is scheduled for completion in 1998 (MEED 26:4:96).

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