The Saba power project in Punjab is expected to reach financial close within the next few weeks, project sources say. The local Saba Power Company is to construct a 125-MW oil-fired power station on a buildown-operate (BOO) basis at a total cost of around $135 million.

The Export-Import Bank of the US is to provide around $50 million, the Export Development Corporation of Canada has agreed to provide $25 million and ANZ Grindlays are providing term loan finance and local letters of credit worth $25 million.

Around $35 million is to be raised in equity.

The project sponsors are the US' Cogen Technologies, Capco Resources of Canada and the local Powerflow International.

Babcock & Wilcox Canada was awarded the main engineering, procurement and construction contract in 1995. Completion is scheduled for the beginning of 1998.