National Power Parks Management Company Ltd (NPPMCL) which is owned by the federal government has been provided with government guarantee for raising Rs 38 billion funds from financial institutions to meet the financing needs. NPPMCLwas established to operate two re-gasified liquefied natural gas (RLNG) based power generation plants at Balloki, district Kasur, and Haveli Bahadur Shah, district Jhang, with capacity of 1223 MW and 1230 MW respectively.
The projects had been approved by the Executive Committee of the National Economic Council (ECNEC) in February 2016 at the total cost of Rs 190.44 billion. Initially Rs 114 billion was provided by the federal government as cash development loan (CDL) to the NPPMCL at the standard terms during the fiscal years 2015-16 and 2016-17.
NPPMCL was asked to arrange the remaining financing on self-financing basis. Later by approval of the federal cabinet Pakistan Development Fund Limited (PDFL) acquired the two RLNG power plants from NPPMCL. Consequently Rs 114 billion which had been given to NPPMCL was acquired as advance against equity injection by the PDFL and to partially fulfill the funding requirements of NPPMCL. A short-term loan of Rs 32.738 billion was also provided by the PDFL. Now NPPMCL had requested Finance and Power Divisions to arrange project financing requirements of Rs 70 billion to pay off the remaining cost of projects and short-term loan of PDFL.
The ECC has decided that Rs 32.738 billion provided by PDFL to NPPMCL would be converted into PDFL equity into NPPMCL. While the he NPPMCL will raise Rs 38 billion from the financial institutions with government guarantee to pay off the remaining cost of the two power plant projects.
