September 06, 2008

Engro Energy inks loan agreement for 217 MW power plant

Daily Times reported that Engro Chemical Pakistan Limited’s 100% subsidiary Engro Energy Private Limited has signed a USD 154 million financing agreement with a consortium of foreign institutions for its 217 MW power plant being constructed near Qadirpur in Sindh Province.

The consortium comprises of leading international foreign financial institutions including IFC, DEG, Proparco, FMO, Swedfund International and OPEC Fund for International Development. This is the first ever Pakistani private sector power project being funded by Swedfund and Proparco, while the German development finance institution DEG is actively supporting projects in Pakistan as an international finance partner since last 2 years after resuming its activities in Pakistan.

The project will generate electricity by consuming low quality permeate gas from Qadirpur gas field, which is being flared currently also resulting in reduced carbon emissions. The plant will be based on highly efficient technology being provided by China National Construction & Engineering Company resulting in lower cost of power generation.