China Eximbank contributes to $464 million syndicated export credit facility for the 747 MW Guddu Combined Cycle Project

On December 23, 2011, the Central Power Generation Company Limited (CPGCL) — a special purpose vehicle that is also known as GENCO-II — signed a $464,058,000 USD syndicated export credit facility agreement with the Export-Import Bank of China (China Eximbank), Hong Kong and Shanghai Bank Corporation Limited (HSBC), and the HSBC Bank Middle East Limited for the 747 MW Guddu Combined Cycle Project. The borrowing terms of the syndicated loan were as follows: a maturity period of 12 years, a grace period of 3 years, and an interest rate of LIBOR (0.3399%) plus a 2.4% margin. Sinosure provide credit insurance for the syndicated export credit facility agreement. The total cost of the Sinosure insurance policy (to the borrower) was PKR 3.873 billion. Financial close was achieved in October 2012. The proceeds of the loan were to be used by the borrower to partially finance a $545.98 million EPC contract between CPGCL and Harbin Electric International Company Ltd (formerly Harbin Power Engineering Co. Ltd.), which was signed on September 19, 2009. The purpose of this project is to install two 243 MW gas turbines, two heat recovery system generators (HRSGs), and one 261 MW steam turbine unit. Harbin Power Engineering (HPE) installed size 9-FA gas turbines from General Electric (GE) USA. The 747 MW Guddu Combined Cycle Power Plant officially commenced on December 23, 2011. It reached its commercial operation date (COD) on December 17, 2014. Central Power Generation Company Limited was incorporated on October 26, 1998 to take over all properties, rights, assets, obligations and liabilities of the thermal power plant located in the town of Guddu within Kashmore district and Sindh province, which was previously owned and operated by Pakistan’s Water and Power Development Authority (WAPDA). Central Power Generation Company Limited also inherited the Sukkur and Quetta power stations. It commenced its commercial operations on March 1, 1999, and it was granted a generation license (number GL/02/2002) by Pakistan’s National Electric Power Regulatory Authority (NEPRA) on July 1, 2002, for a term of 15 years (i.e. until June 30, 2017), which was later modified to add the new 747 MW Guddu Combined Cycle Power Plant on April 26, 2013.

Additional details

1. The Chinese project title is 巴基斯坦古杜747MW联合循环电站. 2. The individual contributions of the three banks to the syndicated loan are unknown. For the time being, AidData has estimated the contribution of the China Eximbank by assuming that the three lenders contributed equal amounts ($154,686,000) to the loan syndicate.

Number of official sources

13

Number of total sources

16