AES Pak Gen (Pakistan) Ltd.

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The $349 million, 365-MW AES-Pak Gen Power Plant in Sindnia, Punjab was developed by AES Transport Private Ltd, a consortium of Applied Energy Systems (AES) Corporation, Pak Gen Power and the International Finance Corp. (IFC). AES and the IFC were also developing the nearby AES Lal Pir Power Plant. Nichimen Corp. of Japan was the primary contractor and Mitsubishi Heavy Industries is the equipment supplier. The project was expected to have become operational by late 1997. In June 2010, the local company Nishat Group acquired AES's stake in the company. The project obtained debt financing from the IFC and the JEXIM Bank. MITI is providing political risk insurance for the buyer's credit financed by the commercial banks. Financial closure was reached in January 1996. The project developers have a 30-year power purchase agreement with the Water and Power Development Authority of Pakistan (WAPDA) and a fuel supply agreement with the Pakistan State Oil Co. (PSOC). The Government of Pakistan has guaranteed currency convertibility as well as WAPDA and PSOC obligations. In its fiscal year 1996, the IFC approved a $20 million direct loan, a $50 million syndicated loan, and $9.5 million in equity.