MoU signed for power project in Sundar Industrial Estate

Lahore: The Punjab, Industrial Estates and Amwal International Investments of Kuwait signed a Memorandum of Understanding (MoU) for the construction of 390 MW power project in Sundar Industrial Estate.

The Punjab Industrial Estate was represented by its Chairman, Mohammad Ali Mian while on behalf of Amwal International Investments of Kuwait Muthanna Al-Saleh inked the MoU.

The Chief Executive Officer (CEO) of Akkadian Energy, Ltd Ross Connelly, Chief Executive Officer Punjab Industrial Estates Sabir P Chohan were also present on the occasion.

The Chairman, PIE, Mohammad Ali Mian, who is also president of Lahore Chamber of Commerce and Industry (LCCI), Mohammad Ali Mian termed the MoU a major breakthrough on the part of PIE as it would help government overcome electricity shortage that has jolted the very base of the Industrial sector.

The project represents approximately dollar 400 million of foreign direct investment (FDI) in country. Equity for the project will be provided by Amwal and PIE and debt financing will be provided by the International Finance Corporation of the World Bank Group and other international financial institutions.

The plant will be built by using state-of-the-art General Electric turbines and that would utilise gas and high speed diesel fuels to provide Pakistan with cost effective power. The project complies with all international best practices and will meet or exceed World Bank guidelines on environment. The plant will be located at Sundar Industrial Estates in Punjab and provide power to meet the growing needs of the country and the industry.

The plant, which is likely to be operational by December 2010, is a private-public partnership between the Government of Punjab, private investors and Akkadian Energy, Ltd Akkadian Energy Ltd was awarded the bid for the project by PIE through an internationally competitive bid process in 2007.