Tharparkar $2 billion 660MW Gas Power Plant

Overview:

• A consortium led by state-owned Chinese banks will lead $2 billion worth of funding for the construction of a coal mining project and associated power plant in southeastern Pakistan.
• To develop Thar Block II mine project, state-owned China Machinery Engineering has formed a joint venture with the Government of Sindh, Karachi-based power company, Engro Powergen, Pakistani engineering company, Thal, and power producer Hub Power and Habib Bank, the largest bank in Pakistan.
• China Machinery, Engro Powergen and Habib Bank teamed up with textile company Liberty Mills on building two 330 MW coal-fired power stations. The power plant is expected to be put in use in 2018.
• A consortium of 13 banks led by state-owned China Development Bank, Industrial and Commercial Bank of China, China Construction Bank and Pakistan’s Habib Bank have agreed to provide $2 billion financing in dollar, Pakistani rupee and Islamic shariah-compliant tranches.
• These projects were signed last year in April during Chinese president Xi Jinping’s visit to Pakistan as part of the China-Pakistan Economic Corridor, a series of $46 billion worth infrastructure projects in Pakistan funded by Chinese investors. 
• Linklaters acted for the lender consortium, with Hong Kong partner Stuart Salt and Beijing partner Xiaohui Ji leading the team; and Pakistani firm Vellani & Vellani acted for the lenders on local law.
• Pinsent Masons acted for China Machinery and other sponsors, with Singapore partner David Platt and Shanghai partner Amanda Yao taking the lead.
• Karachi-based firm Haidermota BNR served as Pakistani counsel to the borrowers.