Engro Energy is expecting to put pen on a General Sales Agreement (GSA) for its power plant by end of July. Talking to Aaj Markets CEO Engro Energy Khalid Mansoor said the proposed plant would have the production capacity of 218 MW; utilisation of waste gas makes it a project of unique nature.
Currently GSA are being negotiated with OGDCL and SNGPL with the allowance of 36 days for which the permission of Nepra is sought, in which 20 days are kept for the normal production shutdown for OGDCL, 10 days for supply interruption from SNGPL and 6 days for any unforeseen event; the normal allowance for such plants is 36 and a half day.
Describing the financing detail for the plant he said, under the 2002 power policy it would be the first project with foreign financing, 75 percent of which would be debt and rest comprising of equity.
IFC a subsidiary of World Bank would act as the Lead Manager in the transaction. He however, declined to mention a specific amount required for the facility. Clarifying the issue of Gas Allocation he said the Gas Allocation was secured through an unsolicited methodology in which bidding is not required and 6 operational thermal power plants have already obtained gas from PPIB in the same manner.-PR