The barge-mounted power project to be built at Port Qasim by WAK Orient Power & Light (WAK OPL) has received a commitment to provide guarantees worth $402 million from the Maritime Administration (Marad), part of the US government’s Transportation Department. Marad says that the guarantee is expected to be formalised by September.
WAK OPL is to provide equity totalling $106 million and the remaining finance is to come from a locally-raised loan arranged by the National Development Finance Corporation. Total costs are $521 million, says financial adviser First Capital Securities Corporation.
Raytheon Engineers & Constructors and Westinghouse Electric Corporation, both of the US, were awarded the engineering, procurement and construction contract worth $382 million.
Westinghouse expects to start construction within four months. The anticipated construction period is 28 months. The 450-MW plant will he built in the US and will then be transported complete to Pakistan. Westinghouse says it will be the world’s largest barge-mounted power complex. Marine Energy Systems Corporation, also of the US, will be the major subcontractor, carrying out construction work on the project (MEED 24 :5: 96)