AES Lal Pir (Pakistan) Ltd.

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The residual Oil-Fired Plant in Lal Pir, Punjab Province is a 362-MW, $343 million, project being developed by AES Lal Pir Ltd (AESPL). AESPL was a consortium consisting of Applied Energy System (AES) (90%) and the International Finance Corp. (IFC) (10%). The plant was to run on fuel oil, the most readily available fuel in Pakistan. Mitsubishi Heavy Industries was the EPC contractor and the equipment supplier. AES is providing managerial and technical support during project development. The first generation unit was expected to come on line by the end of 1997. In June 2010, the local company Nishat Group acquired AES's stake in the company. Financial closure was reached on March 14, 1995. The debt/equity ratio for this project is 72/28. In addition to being a sponsor and providing $9.5 million in equity, the IFC agreed in its fiscal year 1995 to provide a $40 million direct (A) loan. JEXIM and commercial banks are providing an additional $207.0 million in debt financing. AESPL is planning a public issue once the plant becomes operational. The company has a 30-year power purchasing agreement (PPA) (indexed to the US$ and Yen) with the Water and Power Development Authority of Pakistan (WAPDA). A 30-year fuel supply agreement was agreed with the Pakistan State Oil Corporation (PSOC).