ISLAMABAD, Aug 29: The Private Power and Infrastructure Board (PPIB) has signed an implementation agreement (IA) with Foundation Power Company Dharki Ltd for establishing a 175MW power plant.

The power plant to be built in Dharki, district Ghotki, will commence its commercial operations by September 2009. The plant is estimated to be set up at a cost of $132 million.

The Foundation Power, a special purpose company formed by the Fauji Foundation, had initialled the power purchase agreement with Wapda, NTDC, and a gas supply agreement with Mari Gas Company.

Brig (retd.) Rahat Khan, director P&D Fauji Foundation signed the agreement on behalf of the company, while Muhammad Yousuf Memon, managing director PPIB signed on behalf of the government of Pakistan.

The power plant will use 560BTU raw gas from Mari Deep gas field as fuel and will apply a combined cycle technology.

Demand for energy is growing rapidly with the growth in economy and the liberal policies of the government have greatly encouraged private sector participation in the power sector, market sources said.