KARACHI, April 23: A memorandum of understanding (MoU) was signed between the city government and the Dhabian Power Engineering Limited (DPEL), a Dubai-based firm, for the installation of four turbines to produce 320 megawatts of electricity. The project was pledged by the UAE government to be gifted to Pakistan.

A ceremony for the signing of the MoU was held in a local hotel on Wednesday while a formal agreement would be signed within the next three months.

Under the deal, the city government will provide a piece of land for the project. The electricity produced through the public-private partnership project will be sold to the Karachi Electric Supply Corporation.

The city government will also ensure a continued and unrestricted supply of natural gas and water to the project site for 20 years.

City Nazim Syed Mustafa Kamal, DCO Javed Hanif and other officers were present at the ceremony. Mr Kamal said that the power generation capacity of the plant could be increased up to 1,800 megawatts.