Sapphire Muridke NGCC Power Project

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On August 31, 2007, Sapphire Electric Company Limited (SECL) signed an implementation agreement with Private Power and Infrastructure Board (PPIB) of the Government of Pakistan to build, own, operate and maintain a 225 MW natural gas based power plant in the city of Muridke, Punjab province. The equiyt partners in Sapphire Electric Company Limited (SECL) were Sapphire Fibres Ltd., a member of the Sapphire Group [Pakistan], and Xenel International [Saudi Arabia]. 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, SECL had entered into formal agreement with PPIB, 30 year power purchase agreement with the Pakistan Water and Power Development Authority (WAPDA), signed February 2007. The fuel supplier was SNGPL, under a contract signed in January 2007. The project consisted of 2 GT (GE 6111FA)+2 HRSG+1 ST. 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 was not available from public sources. The project was commissioned in October 2010. The total cost of this project was estimated at US $185 million. The project reached financial closure in June 2007 with the signing of the financial closure documents between Sapphire Electric Company Limited (SECL) and the Private Power and Infrastructure Board. A consortium comprising Habib Bank, Muslim Commercial Bank, United Bank, Allied Bank and National Bank Pakistan provided over Rs 9 billion in debt. As of December 31, 2008, the major equity parters in SECL were Sapphire Fibres Ltd. (57.22%), a member of the Sapphire Group, and Xenel International. Xenel International's ownership share was not available from public sources. The power project was expected to start its commercial operation in October 2009. The project became operational in October 2010.