Two IPPs of 420 MW start construction

Islamabad: Two more private sector power projects have gone into construction phase after achievement of financial closure, Hubco-Narowal Power Project and Liberty Power Tech Project, 220 and 200 MW capacities respectively, APP reported.

This was announced by Managing Director, Private Power and Infrastructure Board (PPIB), Fayyaz Elahi, during the signing ceremony, which was also attended by other senior officials from PPIB and the Project Companies.

The Sponsor of HUBCO-Narowal project located at Narowal is the Hub Power Company Limited, while the lenders of project include Habib Bank Limited (HBL), National Bank Limited (NBP, Allied Bank Limited (ABL) & Bank Al-Falah, while the Sponsors of Liberty Power Tech Project located near Faisalabad are Liberty Mills Limited and Mukaty Family, lenders of project being Allied Bank Limited (ABL), Habib Bank Limited (HBL), National Bank Limited (NBP), Faysal Bank Limited (FBL), Meezan Bank Ltd and Bank Al-Falah Ltd etc.

The estimated investment in HUBCO-Narowal project is approximately US$ 274 million while in Liberty Power Tech Project it is US$ 240 million, and they are targeted to be commissioned by March 2010 and December 2010, respectively.

With these two projects have started construction, a total of twelve (12) new IPPs are now under construction through GOP power policy and will add a capacity of 2.539 GW by the end of 2010.

The project was hailed as a major success in attracting private investment to eliminate the present loadshedding as per government commitment to the nation by Mr.Elahi. He went on to say that it shows an increase in the confidence of the investor community in the power sector of Pakistan.