International Power signs financing for 375 MW Uch II CCGT in Pakistan

UK utility International Power has agreed financing to develop Uch II, a 375 MW CCGT extension to the existing 572 MW Uch plant in Pakistan.
The Uch II project will be constructed under an EPC contract with Hyundai Engineering Company and Descon Engineering. It will comprise two GE 9E gas turbines and one steam turbine. The plant is expected to be operational in 2013 and will be operated by the existing Uch facility under an operations and maintenance agreement.
The electricity generated from Uch II will be sold through a 25-year dollar-indexed power purchase agreement with the National Transmission and Despatch Company, which is wholly-owned by Pakistan. Gas will be supplied from the existing gas field under a gas supply agreement with the Oil and Gas Development Company of Pakistan.
Uch II will be 100 per cent owned by International Power. The total project cost is estimated at $480m, which will be funded by debt and equity in a 75:25 ratio. International Power’s equity investment of $120m will be funded from current liquid resources.
The $360m of debt will be provided by multilateral and bilateral agencies that include the Asian Development Bank, International Finance Corporation, Korean EXIM and the Islamic Development Bank.
Philip Cox, CEO of International Power, said, "Uch II represents an excellent opportunity for International Power to add new capacity adjacent to our existing Uch site and help tackle the issue of power shortages in the country. A key attraction of this investment is that it will also use domestic gas to produce competitively priced power."

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