Two US companies, Intrag and Sceptre Power, are to join the local Fauji Foundation in a project to set up a 147-MW power station in Kabirwala, Punjab.

Fauji will hold 43 per cent of shares in the project, according to an agreement initialled by the three partners in mid-June. The US partners will together hold 40 per cent, with the remainder to be offered to the public. No cost figure was given, but industry sources estimate the project will cost about $150 million.

The Water & Power Development Authority (WAPDA) has agreed to buy the power produced from the project, the sponsors say. The aim is to complete the project in time to benefit from the government's special power purchase rate of $0.09 for each kWh promised for stations set up by December 1997.

The sponsors have approached the International Finance Corporation (IFC), the Asian Development Bank, and the US' Export-Import Bank for funding of the project.