960406

Financial close of

114-mw Saba power

project achieved

SHAHID MALIK

LAHORE: Financial close for the 114-mw Saba power project has been reported from London, with Cogen Technologies of Houston, USA, and Saba Petroleum Company Ltd of California as the primary sponsors.

According to a press release, the financial close was reached on March 31, the first of its kind for which the Export-Import (Exim) Bank of the US is providing $81 billion, under a 12-year fixed rate term.

The project, located near Mandi Farouqabad on the Sheikhupura-Sargodha road, will sell power to Wapda under 30-year contract. The turn-key construction contract has been awarded to the Babcock and Wilcox Company of the US, and most of the equipment will come primarily from the United States.

Fuel for the project is to be supplied by the Pakistan State Oil.

Cogen Technologies, said to be the largest privately-held power company in the US, has approximately 1500-mw of projects in operation in that country - all based on gas, coal and oil as fuel.

Cogen, involved in a number of projects in the Asian countries, has earned investment grade BBB by the Standard and Poor's rating agency, the press release said.