Saba Power Company Ltd.

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This $154.0 million, 125-MW, oil-fired power plant at Farouqabad, Punjab is being developed by the Saba Power Company Ltd, a consortium of Coastal Saba Power Ltd. (90%) a Coastal Corporation subsidiary, Cogen Technologies (5%), Capco Resources (5%). Local energy company, Saba Petroleum had been one of the earlier developers, but its 60% stake was bought out by Coastal Power, who later purchased an additional 30% from the remaining sponsors. Saba Coastal Ltd. will be the project operator. Powerflow International of Pakistan and Babcock and Wilcox are providing engineering and construction services for the project. Toshiba is an equipment supplier. The facility was expected to become operational during 1999. Financial closure was reached in March 1996. Financing was obtained from the USEXIM Bank and a $23.5 million commercial facility set-up by Nissho Iwai Corp. A $5.0 million political risk guarantee was provided by MIGA. The project has a 30-year power purchase agreement with the Water and Power Development Authority of Pakistan (WAPDA). In its fiscal year 1997, MIGA guarantees totaling $5 million covered a portion of Cogen Technologies' $22 million equity investment in Saba Power against the risks of expropriation, transfer restriction, and war and civil disturbance. Pakistan State Oil Compant Limited was the fuel supplier, under a 30 year contract. In 2001, El Paso Corporation merged with Coastal Power and thereby acquired a 94% stake in Saba Power Company Ltd. On June 13, 2008, Saba Power Company Ltd. acheived closure on the refinancing of its outstanding project debt. The project company secured a US$36.7 million term loan tranche, extended by Bank of Tokyo-Mitsubishi UFJ (US$18.35 million) and Sojitz Corporation (US$18.35 million), and a US$36.7 million export credit tranche, provided by the USEXIM Bank, Royal Bank of Scotland, Banco Popolare di Milano, DZ Bank, ABN Amro and SMBC. http://www.sabapower.com