1,263MW project achieves financial close

ISLAMABAD – The financial close for 1263 MW re-gasified liquefied natural gas (RLNG) based Punjab Thermal Power Ltd (PTPL) has been achieved. Financial closing documents of the power project to be completed at the cost of $708 million were signed here Friday by Private Power and Infrastructure Board (PPIB) Managing Director Shah Jahan Mirza, and PTPL Chief Executive Officer Akhtar Hussain Mayo. The financial closing ceremony was attended by the Federal Minister for Energy, Muhammad Hammad Azhar, Punjab Energy Minister, Dr Muhammad Akhtar Malik, Chairman PPIB/Secretary Power Division, Ali Raza Bhutta, and other senior officials.

The RLNG based 1,263 MW PTPL power project located near Trimmu Barrage, District Jhang and is so far the largest RLNG based power generation project under power generation policy 2015. The project is being developed in IPP mode through Punjab Thermal Power (Pvt) Ltd (PTPL), a private limited company owned by the Punjab government through Energy Department. This is the second RLNG based power project developed by the Punjab government through its own resources, the first being the Bhikki Power Plant, which has already entered full-fledged combined cycle commercial operations and has generated over 9.3 billion units during last year. PTPL project is being financed through 75 per cent commercial debt arranged from local banks, which include National Bank of Pakistan, The Bank of  Punjab, United Bank Limited and Habib Bank Limited while the total cost involved in development of this project is $708 million. Utilising state of the art technology, the plant has the design efficiency of 61.16 per cent, which is rated amongst highest efficiencies in the world, which would result in fuel saving of billions of rupees to the national exchequer during 30 years project life period while reducing overall tariff.

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