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Banned

KARACHI: The Sindh government has decided to set up a 50-megawatt power plant at Nooriabad which will be the first-ever power project to be executed by a province under public-private partnership, it emerged on Sunday.
Adviser to the Sindh chief minister on finance and energy Syed Murad Ali Shah told a recently held meeting of the Sindh cabinet at Chief Minister House that the project was conceived in 2012 but could not be materialised at that time due to ‘red-tapism and delays in regulatory approvals’, according to the minutes of the meeting reviewed by Dawn.
The adviser said that despite ‘financial constraints,’ the provincial government was committed to the launch of the project as it had already sought for it required undertakings from the National Bank of Pakistan and the Sindh Bank.
He lauded the professional contribution of the public-private partnership unit of the finance and energy departments that expedited the process and developed financial structure for the energy project.
In order to expedite work on the Nooriabad power project, the cabinet decided that the government would provide up to Rs6 billion guarantees and cash margin of Rs600m to the NBP for opening of ‘letters of credit’ for the procurement of machinery and equipment for the power project.
The meeting was informed that the Sindh Bank would undertake the repayment of debt of Rs2.805 billion in case of default of the project operators and the financial support provided by the government would cease when the power project achieved financial close.
The cabinet members underlined the importance of the energy sector and suggested that the Sindh government commit maximum resources for the development of this sector.
http://mediacellppp.wordpress.com/2014/10/06/sindh-govt-to-set-up-50mw-power-plant-at-nooriabad/
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