Summary of Proposed Investment
Project Number
5141
Company Name
PAKGEN POWER LIMITED
Date SPI Disclosed
Sep 27, 1995
Country
Pakistan
Industry
Infrastructure
Status
Completed
Sector
Heavy Fuel Oil - Thermal Power Generation
Department
Regional Industry INF MCT
Environmental Category
A - Significant
Previous Events
Approved : Dec 11, 1995
Signed : Dec 20, 1995
Invested : Jun 17, 1996
Project Description
Summary Of Project Information (SPI)
| Project Name | Pakistan-AES Pak Gen |
| Region | Central Asia, Middle East and North Africa (CAMENA) |
Sector
Project No005141
Projected Board DateOctober 27, 1995
Company NameAES Pak Gen (Private) Company
Technical Partner and/or Major Shareholders
AES Transpower Inc., Arlington, VA, USA
Project Cost Including proposed IFC investment
US $ 348 million (Estimated)
Location of project and Description of site
Lal Pir, Punjab Province, Pakistan
Proposed IFC investment: ‘A’ Loan = $20 million,
‘B’ Loan = $50 million, and Equity = $9.5 million
Description of Company and Purpose of Project
Shortage of electrical energy is a major constraint on Pakistan’s economy. Load Shedding is commonplace, and is now at 15% of peak demand. The World Bank estimates the cost to the economy of load shedding at nearly US$ 1 billion per year. Hence, addressing the power shortage problem has become one of Pakistan’s highest priorities. To this end the Government of Pakistan has introduced a Power Policy Guideline (March 1994) to increase the participation of independent power producers on its system. AES Pak Gen will be one of the first projects to be implemented under the new guidelines. The project, to be located in Lal Pir in the Punjab Province, is to build, own and operate a power plant with a net capacity of 337 MW, adjacent to the AES Lal Pir power project (IFC Investment # 4592). The technology used in the project is conventional steam electric generation, and the turnkey contractor is Nichimen/Mitsubishi Heavy Industries (MHI) of Japan. The date-certain EPC contract with Nichimen/MHI will enable this power plant to commence commercial operations before the end of 1997.
Environmental Category and Issues
This is a category A project according to IFC’s environmental review procedure. The environmental issues associated with this project include air emissions, water supply impacts, and establishing adequate fuel decanting procedures and containment measures. The PAK Gen project will have a scrubber to reduce SOx emissions, water supply impacts will be contained through proper treatment of water and the use of well water, and, the sponsor has already begun discussions with the fuel supplier towards implementing best practices measures at the fuel decanting facility. The project sponsor has prepared an environmental assessment (EA) for the project and is continuing with the public consultation program initiated with the Lal Pir project. The EA demonstrates that the project’s impacts can be mitigated to acceptable levels. The Environment Division has cleared this project.
The is from the Public Information Center.
| Host country location of environmental documents | Environmental Protection Agency of Pakistan, Punjab Province, Pakistan |
Date SPI sent to PIC September 27, 1995
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 676-0365
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
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