KARACHI, Sept 7: ABN Amro, Askari Bank and Bank AL Falah signed Rs9 billion financing arrangement with Fauji Foundation-Foundation Power Company (Dharki)

Fauji Foundation and a consortium comprising ABN Amro Bank, Askari Bank and Bank Al Falah observed the signing ceremony of loan financing arrangement in Karachi to mark the financial close of a 175MW power plant being set up by Fauji Foundation.

Foundation Power Company (Daharki) Limited is a 175MW combined cycle gas turbine being set up at Dharki, District Ghotki under the Pakistan Power Policy 2002. ABN Amro and Askari Bank are Advisers while ABN Amro, Askari Bank and Bank Al Falah are joint lead arrangers.

The financing arrangement encompasses a 12-year project finance facility of Rs9 billion being extended jointly by the lead arrangers, contributing 75 per cent to the project cost. The project is expected to achieve commercial operations in October 2009.

Foundation Power will benefit from dedicated gas supply from the Mari Gas field, which will be of low BTU making it efficient for power generation. The project will be supplying power to the National Transmission and Distribution Company under a 25 year power purchase agreement.

Foundation Power will be Fauji Foundation’s second IPP as it has been successfully operating the 157MW Fauji Kabirwala power plant since 1999.