Halmore Bhikki Power Project

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Halmore Power Generation Company Ltd. (HPGCL) was established in order to build, own and operate a greenfield, 225 MW, gas-fired, independent power plant using combined cycle technology near the town of Bhikki in Sheikhupura district in the province of Punjab. HPGCL initiated the project by means of an unsolicited proposal to Pakistan's Private Power and Infrastructure Board (PPIB). In September 2006, Pakistan's National Electric Power Regulatory Authority (NEPRA) approved a generation tariff for HPGCL. Following this, in April 2007, Halmore signed a power purchase agreement (PPA) with the National Transmission and Despatch Company (NTDC) on behalf of the Water and Power Development Authority (WAPDA). On Oct. 23, 2007, Halmore Power Generation Company Ltd. signed an Implementation Agreement (IA) with PPIB, thereby allowing the project to proceed towards financial closure. According to PPIB, the project reached financial close in April 2008 with a 75/25 debt-equity split and a total investment commitment of US$231 million. HPGCL secured a US$173.5 million loan facility from a consortium of local banks led by United Bank Limited and Allied Bank Limited. The sponsor' equity contribution was US$57.84 million. Previously in April 2007, the lead arrangers were HSBC, Czech Export Bank and Askari Bank. A 80:20 debt/equity ratio was expected, along with an insurance from Export Guarantee and Insurance Corp. However, this seems not to have materialized. NEPRA, PPIB, Project Finance International (PFI), Pakistan Daily Times