Uch Power Ltd.

active

The 586-MW, $630 million, Uch Power Plant will use combined-cycle and natural gas technologies. The gas will be piped in from the Uch field about 50 km from the site. Uch Power Ltd. (UPL) is a consortium consisting of Midlands Power (40%), Tenaska (30.34%), General Electric Capital (18.4%), Hawkins Oil & Gas (8.5%), and a local firm Hasan Associates (2.76%). In February 2005, International Power completed the acquisition of a 40% shareholding in Uch from EON, which acquired Midlands Power. The remaining shareholding in Uch is owned by Tenaska (33%), GE Capital (18%) and Hawkins Uch Holdings (9%). Tenaska Services Ltd will oversee project implementation while GE and Hasan Associates are the primary project contractors. Raytheon was brought in by GE as a subcontractor. The EPC contract is worth $319.2 million. GE and Raytheon are also equipment suppliers for the project. Black & Veatch are providing engineering services. ESB International, a subsidiary of the Electricity Supply Board of Ireland will operate the plant. ESBI will receive $7.2 million in fixed fees during the 2-year pre-commercial operating period. During the commercial operation, ESBI will receive fees of $3.9 million/year for the 3-years and $3.2 million for the final 20 years of operation. The International Finance Corp. (IFC) provided a direct (A) loan of $40 million and a syndicated (B) loan of $75 million in its fiscal year 1996. The project is also being financed in part through the Private Sector Energy Development Fund (PSEDF) of Pakistan, which was set up with initial financing from the Japan Exim Bank, the Bank of China, and the World Bank. In 1996 the PSEDF approved $187.5 million subordinated debt financed by US Eximbank ($97.5 million), Bank of China ($80 million), and the World Bank ($10). The World Bank also provided a $75 million partial risk guarantee against specific political risks in support of a $75 million syndicated commercial bank loan for a term of 15 years, starting in 1996. This and the Hub Power Co's project were the only two PPI power projects guaranteed by the World Bank before June 1997. The IFC provided a guarantee of $16 million. USEXIM has guaranteed $152.5 million of commercial bank debt. A 23-year power purchase agreement has been agreed with the Water and Power Development Authority of Pakistan (WAPDA). WAPDA is responsible for the installation of a 220kv transmission line to the project. The capacity purchase price and the energy purchase price are to be adjusted for inflation and exchange rate fluctuations. On March 19, 2008, International Power increased its equity share in Uch Power Ltd. to 71% by purchasing Tenaska's 31% holding in the project company for US$93 million. In April 2008, Swicorp Jossour Company - a wholly owned private equity investment vehicle of Swicorp [Saudi Arabia] - announced that it had purchased a 20.14% stake in Uch Power Ltd. via a newly created power company named Creative Energy Resources Corp. (CER). In March 2012, International Power, increased its holding in Uch-1 following the sale of its entire stake in Hubco (17.4%). The shares were purchased from CER, majority owned by Private Equity firm Swiscorp). The IBRD guarantee of US$67 million expired in June 2005 (started in January 1994). Plus News Pakistan, IPR raises stake in Uch-1, 28 March 2012