NTDC secures Rs 6.4 billion loan for network station and construction of transmission lines – Journal
LAHORE: The National Transmission and Despatch Company (NTDC) on Tuesday secured Rs 6.4 billion in financing from a three-member consortium of banks for the construction of a 220 kV / 132 kV grid station and Allied 35-kilometer-long transmission lines to obtain 1,274 MW of renewable energy from 10 wind projects under construction in the Gharo-Jhimpir wind corridor near Tando Muhammad Khan in Sindh.
The loan agreement, approved by the consortium (National Bank of Pakistan, Habib Bank Limited and Bank Islami Pakistan Limited) was signed by NTDC General Manager Muhammad Ayub and representatives of the Asad Altaf consortium, Zia-ud-Din Tahir and Amir Ashraf at a ceremony held here at Wapda House.
This is the first time that the NTDC has raised funds from its own resources (balance sheet) without government guarantee.
âPreviously, we relied on Pakistani government guaranteed loans in the local market,â Ayub said during an address on the occasion. The funding facility would be a precursor to more funding for future NTDC projects, he said.
According to the ministry, the PC-1 cost of the transmission lines and the Jhimpir-II substation project is 10.753 billion rupees while the required funding is 6.4 billion rupees. The remaining amount will be arranged by the company from its own available financial resources.
The project will have sufficient capacity to transmit more electricity in the future. To meet future development needs in the Gharo-Jhimpir wind corridor, the 220 kV grid station would be upgraded to 500 kV in the coming years, he said.
According to an official source, work on 10 private sector wind projects is currently progressing at a steady pace. These include Din Energy, Gul Ahmed Electric, Metro Wind Power, NASDA Green Energy, Liberty Wind Power-I, Liberty Wind Power-II, ACT-2 Wind, Indus Wind Energy, Lakeside Energy and Artistic Wind Power.
Each of these 10 wind projects has a capacity of 50 MW and the projects are expected to begin commercial operations from February next year.
Later, other projects will be launched in the Gharo-Jhimpir wind cluster, the official told Dawn on condition of anonymity. Twenty-four such projects with an installed capacity of 1085 MW have already been completed in this cluster, which currently contribute around 950 MW to the national grid. Our grid and our 220 kV Tando Muhammad Khan lines take electricity from these power plants and add it to the national grid, he explained.
He said the Rs 6.4 billion bank loan would be transferred to the accounts of the consortium company.
Posted in Dawn, July 14, 2021