Washington D.C., December 26, 2007—
IFC, a member of the World Bank Group, has signed an agreement to support Engro Energy’s combined cycle power project, which will help meet Pakistan’s increasing energy needs.
The Engro Energy project includes a 217-megawatt base load plant that will be built in Pakistan’s Sindh Province. The combined cycle power plant will generate electricity using low-quality gas, which would otherwise be flared. The highly efficient technology will reduce the average cost of power generation. Substantial investments in power generation in Pakistan are needed to relieve serious power shortages, a situation that could deteriorate further in coming years.
The project is being developed by Engro Energy (Private) Limited, a subsidiary of Engro Chemical Pakistan Limited. IFC’s $59.5 million financing package will consist of a $56.9 million loan and $2.6 million in equity. Other contributing development financial institutions include DEG, FMO, OFID, Proparco, and Swedfund.
Rashad Kaldany, IFC Director for Infrastructure, said, “The project will help Pakistan meet a rapidly growing demand for power and contribute to the country's economic growth. The project will also help reduce carbon emissions by avoiding the flaring of gas. We are happy to continue building our partnership with Engro Chemical Pakistan Limited through this project.”
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that poor people have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through loan participations and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit
www.ifc.org
.
About Engro Chemical Pakistan Limited
Established in 1965, Engro Chemical Pakistan Limited is Pakistan’s second-largest fertilizer company. Since 1995, the company has, through its subsidiaries, entered into several new business areas such as port terminal operation, poly-vinyl chloride production, and milk processing. It entered into the power generation business through the Engro Energy project with IFC, and the company expects this to be one of its core businesses in the future.