ISLAMABAD, Aug 2: The Private Power and Infrastructure Board (PPIB) on Thursday initiated the Implementation Agreement (IA) with the Attock Generation Limited (AGL) for establishing a 165MW power plant, to be situated at Morgah, Rawalpindi.

Targeted to start its commercial operations in August 2008, the power plant has been estimated to be set up at a cost of US$113 million. This had been made only a few days after the implementation agreement was signed between the PPIB and Saif Power Limited, for setting up a 225MW power project at Sahiwal, at a cost of US$189 million.

This was announced on Thursday by the federal minister for water and power, Liaquat Ali Jatoi, while chairing a meeting at the PPIB.

According to a statement, Mr Jatoi informed that the Sapphire Electric Company Limited, which had earlier signed their IA with PPIB in March this year, had now achieved financial closure, and was about to start its commercial operations by May 2009. The lenders’ consortium consisted of local banks, including ABL, HBL, MCB, NBP and UBL, providing Rs9 billion in debt.