ISLAMABAD: The 660-megawatt Lucky Electric Coal Power Project, based on Thar coal, achieved financial close on Monday.
Documents for the financial close were signed by Private Power and Infrastructure Board (PPIB) Managing Director Shah Jahan Mirza and Lucky Electric Coal Power Project CEO IH Haqqi. Caretaker Minister for Power Syed Ali Zafar was also present.
Speaking on the occasion, Zafar said in order to improve power supply in the country and make it more robust and reliable, projects based on Thar coal had got more importance in energy security and the country’s economic perspective.
On achieving financial close, the PPIB will issue sovereign guarantees on behalf of the government of Pakistan in favour of project sponsors to secure payment obligations of the power purchaser.
The project will be built at Port Qasim near Karachi. An investment of $1.08 billion will be made for implementation of the project, which will be equipped with super-critical technology and seawater will be utilised for cooling purposes.
The power project is being financed through a debt-equity ratio of 75:25. Its sponsor is Lucky Cement while a lenders’ consortium comprises Habib Bank Limited, United Bank Limited, National Bank of Pakistan, Bank Alfalah, Askari Bank, Soneri Bank, The Bank of Punjab, Meezan Bank, Faysal Bank and Dubai Islamic Bank.
Published in The Express Tribune, June 26th, 2018.