Laraib Energy signs $120 million loan documents with ADB, NBP and HBL

Laraib Energy Limited has signed loan documents with Asian Development Bank (ADB), National Bank of Pakistan and Habib Bank for $120 million for setting up 84 MW hydropower project, 8 km downstream Mangla dam.
The firm was very active in financial close during last several months but due to some bottlenecks on the part of government departments, it was delayed. However, documents for financial close were signed on June 30.
The power company in its press release on Monday said that with the rapidly deteriorating power situation in Pakistan and expensive thermal power plants in the pipeline required serious consideration of thermal and hydel mix, which is presently around 33 per cent.
Laraib hydropower project reached financial close after 12 years' efforts by the company's management and this situation also raises several questions ie is this the way to deal with serious investors? Last year, the government restored tariff policy of 1995 and what the power firm believe that for almost 10 years between 1997 and 2006 no commercially viable tariff was available.