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ICBC Supports First Large Energy Project in the China–Pakistan Economic Corridor

Pakistan’s Sahiwal Coal-Fired Power Station, with financing support led by ICBC, has recently commenced power generation, becoming the first large energy project launched in the China-Pakistan Economic Corridor. The station officially began construction in July 2015, and took only one year for the installation of the main body of boiler. The station was put into operation in May this year, setting a new record in China’s overseas power construction projects and praised as the Speed of Sahiwal by the Pakistani government.

Sahiwal Coal-Fired Power Station was jointly invested by Huaneng Shandong Power Generation Co., Ltd. and Shandong Ruyi Group and constructed by Power Construction Corporation of China. The total investment to the project was USD 1.8 billion, with ICBC arranging the syndicate loan of USD 1.44 billion for the project. By leveraging its Group-wide strength in integration and global service network, ICBC Karachi Branch, Beijing Branch, Shandong Branch and other domestic and overseas branches worked closely to develop a comprehensive financing structure for the project, completing financing agreement drafting and negotiation in a short time. In 2015, the Bank signed a loan agreement with the local project owner in Pakistan to ensure progress of the project and boost cooperation between ICBC Shandong Branch and Huaneng Shandong Power Generation Co., Ltd., as well as between Beijing Branch and China Huaneng Group.

Pakistan has experienced severe power shortage, which became the bottleneck restricting economic growth of the country. Located in Punjab, Pakistan, Sahiwal Coal-Fired Power Station is planned to build two supercritical coal-fired power generator sets of 660,000 kw. The station’s annual power generation is expected to be around 9 billion kwh, boasting the largest installed capacity and most advanced technology in Pakistan.