Attock General Morgah LSFO Power Project

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On August 25, 2007, Attock General Limited (AGL) signed an implementation agreement with Private Power and Infrastructure Board (PPIB) of the Government of Pakistan to build, own, operate and maintain a 165 MW coal based power plant in Punjab province, near the city of Rawalpindi (Morgah), Pakistan. Attock General Limited was owned by Attock Oil Company Ltd (UK, 70%) and Attock Refinery Limited (Pakistan, 30%); thus, Attock Oil Company Ltd indirectly held 100% of the stakes in the project. This power project was to be implemented under the Policy for Power Generation Projects 2002 that clearly laid out the incentives and regulatory regime for private investments in power generation. Prior to financial close, AGL had entered into formal agreement with PPIB, 25 year power purchase agreement with the the Pakistan Water and Power Development Authority (WAPDA) signed September 2007, and fuel supply agreement with Attock Petroleum Limited signed June 2007. According to the 2002 Policy for Power Generation Projects, projects were awarded to the bidder who submitted the lowest tariff. Further information on how this project was awarded to AGL was not available from public sources. The total cost of this project was estimated at $148.6 million. The project reached financial closure on September 25, 2007, with 80% debt financed through lenders Faysal Bank, Allied Bank and Meezan Bank. The remaining 20% was to be financed through equity. The project also held a GOP Guarantee signed September 2007. The power project was initially expected to start its commercial operation by August 2008 but was eventually commissioned in March 2009. http://www.ppib.gov.pk/N_attock.htm