425 megawatts Nandipur power project: $150 million credit deal signed

[LahoreEstate]

BEIJING (March 25 2009): A foreign banks consortium, comprising BNP Paribas, HSBC Bank plc, the Export-Import Bank of China, has signed a Sinosure buyer credit facility agreement of 150.151 million dollar with Northern Power Generation Company Limited for construction of 425 MW combined cycle power project at Nandipur, Finance Director of the company Ijaz A. Babar told APP.

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

The agreement was signed with the consortium, comprising worlds 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 the EPC cost of 329 million dollars.

The main EPC contractor is a leading Chinese company, Dongfang Electric Corporation Limited, with sub-contractor G.E. France. The credit facility is covered by China Export and Credit Insurance Corporation. Ijaz Babar 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 in spite of the fact that the world was passing through grave economic crisis, these banks had fulfilled their commitment, which exhibited confidence they had on strong fundamentals of Pakistans economy.

Ijaz said that the agreement would help in a long way in improving the financing arrangements for the other projects in the pipeline by Wapda/Pepcos corporatised entities namely 425 MW Chichoki Mallian;

700-800 MW Guddu power project; and 969MW Nelum Jehlum hydropower project with due support from Chinese and European banks. Chief Executive Officer Muhammad Rafiq Butt and Finance Director Ijaz A. Babar signed on behalf of Northern Power Generation Company, whereas Chief Executive Officer Francois Cristofari and head of Export Finance (Middle East/Africa) Gerard Lagouarde, signed on behalf of BNP Paribas (China) Limited.

Amongst other signatories to the agreement was Deputy General Manager of the Export-Import Bank of China Zhu Li and Director of Middle East and South Asia of HSBC Bank plc Simon Lee. First Vice-President Jacques Vincent especially visited to sign the participation agreement with BNP Paribas.

The signing ceremony, held last week, was attended by Deputy head of Pakistan mission Abdul Salik Khan, Minister (Economic) Sardar Aminullah Khan and Commercial Counsellor Naeem Khan.

Abdul Salik Khan, expressing his views, said that financial close of such an important project at this point reflected a confidence of financial institutions on the strong economic indicators and policies of present government of Pakistan, and congratulated all the participants for this success. Signing ceremony was followed by a dinner, hosted by head of Export Finance, BNP Paribas (China) Limited Antoine Gustin.

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