Foreign banks sign 425MW power project at Nandipur deal

[LahoreEstate]

Sunday, March 22, 2009
BEIJING: A foreign banks consortium comprising BNP Paribas, HSBC Bank Plc and The Export-Import Bank of China signed a Sinosure Buyer Credit Facility Agreement of US$150.151 million with Northern Power Generation Company Ltd for the construction of 425 MW combined cycle power project at Nandipur, Ijaz A Babar, Finance Director of the company told APP on Saturday.

The CIC France is also a part of consortium through a participation agreement with BNP Paribas, France. Northern Power Generation Company Ltd (NPGCL) is the biggest thermal generation company operating under the overall management of PEPCO.

“The agreement was signed with the consortium comprising world top class banks like The Export-Import Bank of China, BNP-Paribas France, HSBC Bank plc Paris Branch and CIC France on Thursday,” he said.

NPGCL is constructing a 425 MW Combined Cycle Power Plant at Nandipur, near Gujranwala with EPC cost of $329 million. The main EPC contractor is a leading Chinese company, Dongfang Electric Corporation Ltd with sub-contractor G E, France. The Credit facility is covered by China Export and Credit Insurance Corporation.

Ijaz A. Babar talking to APP said that earlier, A

Foreign Banks Consortium consisting of BNP-Paribas, France, HSBC Bank plc Paris branch and CIC France had signed a Euro 68.97 million Coface buyer credit facility agreement on October 3, last year for the project. BNP-Paribas by signing both the credit facilities has now also fulfilled its commitment as initial mandated lead arranger made for the project with the Government of Pakistan, Ijaz said.

Appreciating the financial deal, Ijaz said that despite the fact that the world is passing through grave economic crisis, these banks have fulfilled their commitments which exhibited confidence that they have reposed on the strong fundamentals of Pakistan’s economy.

Ijaz said that the agreement will go a long way in improving the financing arrangements for the other projects in the pipeline by WAPDA/PEPCO’s corporatised entities namely 425 MW Chichokimallian, 700-800 MW Guddu Power Project and 969 MW Nelum Jehlum Hydro Power Project with due support from Chinese and European banks.

Muhammad Rafiq Butt, Chief Executive Officer and Ijaz A Babar, Finance Director, signed on behalf of Northern Power Generation Company, whereas Francois Cristofari, Chief Executive Officer and Gerard Lagouarde, Head of Export Finance (Middle East/Africa signed on behalf of BNP Paribas (China) Ltd. Amongst other signatories to the agreement were Zhu Li, Deputy General Manager of The Export-Import Bank of China and Simon Lee, Director Middle East and South Asia, of HSBC Bank plc. Jacques Vincent, First Vice President specially visited to sign the participation agreement with BNP Paribas.

The signing ceremony was attended by Abdul Salik Khan, Deputy Head of Mission, Sardar Aminullah Khan, Minister (Economic), and Naeem Khan, Commercial Counselor.

On the occasion, Salik Khan while expressing his views, said that the financial close of such an important project at this point reflects the confidence of financial institutions on the strong economic indicators and policies of the present Government of Pakistan and congratulated all the participants for this success.

http://www.thenews.com.pk/daily_detail.asp?id=168424