ISLAMABAD: Asian Development Bank (ABD) is to extend financing of $ 250 million for two power sector transmission strengthening projects, well informed sources in Economic Affairs Division (EAD) told Business Recorder.
One loan will be of $ 235 million. The borrower will pay to ADB interest on the principal amount of the loan withdrawn and outstanding from time to time at a rate for each interest period equal to the sum of (i) SOFR; (ii) 0.60% as provided by Section 3.02 of the Loan Regulations less a credit of 0.10% as provided by Section 3.03 of the Loan Regulations; and a maturity premium of 0.20 percent as provided by Section 3.03 of the Loan Regulations.
The borrower shall pay a commitment charge of 0.15% per annum. Such charge shall accrue on the full amount of the loan (less amounts withdrawn from time to time, commencing 60 days after the date of loan agreement).
Asian Development Bank approves $250mn for power transmission network
Repayment period will be 25 years including a grace period of five years. Repayment shall be made in 40 variable semi-annual installments commencing on May 15, 2029 and ending on November 15, 2048.
According to EAD, the Borrower will be liable to bear the exchange risk cost on actual basis and repay the actual amount of principal and interest as paid by the Government of Pakistan to the ADB in foreign currency and converted into Rupee equivalent issued by the State Bank of Pakistan. In case of default by the NTDC in payment of due amounts that remain unpaid for 30 days after the due date, penal interest at 2% per annum will be charged for the period of default.
All charges and fees, including commitment charges, management fee, front end fee, service charges, etc. if any, payable by the Government of Pakistan to foreign lenders, shall also be paid by the borrower.
Second loan will be of $ 15 million. The borrower will pay to ADB an interest charge at the rate of 2% per annum during the grace period and thereafter on the amount of the loan withdrawn from the loan account outstanding from time to time.
The term “grace period” means the period prior to the first Principal Payment Date in accordance with the amortization schedule set forth in Schedule I to the Loan Agreement. Repayment period will be 25 years including a grace period of 5 years. Repayment shall be made in 40 variable semi-annual installments commencing on May 15, 2029 and ending on November 15, 2048.
Copyright Business Recorder, 2024
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