Gul Ahmed Energy Ltd.

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Gul Ahmed Energy Ltd (GAEL) developed a 125-MW, $138.0 million, power plant. GAEL was a consortium comprising of the Gul Ahmed Group (39.7%), local investors (29.5%), Tomen Corp (19.8%), International Finance Corp. (10%), and Wartsila Diesel (1%). In April 2006, Tomen Corp and Toyota Tsusho Corp merged, with the resulting company named Toyota Tsusho Corp. The plant was to be powered by nine medium speed diesel engines operating on heavy fuel oil and will be located at the Korangyi Industrial Estates in Karachi. Tomen and Wartsila are the project contractors and Wartsila is the equipment supplier. Wartsila Pakistan will operate the plant for ten years. Financial closure took place on June 8, 1995. The project is being financed with a 70:30 debt/equity ratio. In addition to $3 million in equity in 1996, the IFC is providing a $27 million direct (A) loan and a $35 million syndicated (B) loan. The project will have a 22-year power purchase agreement with Karachi Electric Supply Corp. (KESC). A 22-year fuel supply agreement with the Pakistan State Oil Company (PSOC) was also reached. The Government of Pakistan will guarantee payment obligations of KESC and PSOC and ensure currency convertibility.