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China-Pakistan Economic Corridor’s First Large Energy Project Put into Production

The completion celebration ceremony for Pakistan Sahiwal coal power station has recently been held in Sahiwal, Punjab, Pakistan. With financing support from the consortium led by ICBC, this is the first large energy project commencing production along China-Pakistan Economic Corridor. At the ceremony, the Chief Minister of Punjab said that ICBC's timely and efficient financial support ensured the successful commencement, construction and production of this project, and was one of the key factors for the success of this project.

An ICBC official said that the total investment of Sahiwal coal power station is USD 1.81 billion, including USD 1.44 billion loan from ICBC as the lead arranger of a syndication. During the construction, ICBC has leveraged its strength in integrated operation and global service network to provide comprehensive, customized financing structure for this project, complete drafting and negotiation of the financing agreement in a short time, and officially signed a loan agreement with the project owner--Huaneng Shandong Ruyi Pakistan Energy in 2015. Meanwhile, ICBC has used its financial product line in global power sector to arrange financing for eight other projects in addition to Sahiwal power station, among 14 priority power projects of China-Pakistan Economic Corridor.

Sahiwal coal power station is a priority project of China-Pakistan Economic Corridor, and also one of the key projects of the Belt and Road initiative. Since started, the project took only 22 months to commence production, six months earlier than expected, becoming the shortest construction record of similar projects in the world. It is a green and environment-friendly power station with the biggest installed capacity, most advanced technology and best environmental protection indicator in Pakistan. It will be able to generate an annual output of 9 billion KWH, which only addresses frequent power outages of factories and businesses in Punjab, but also provides electricity for more than 3 million Pakistan families.