Pakistan

Pakistan's five-year plan (1993-1998) called for $10.5 billion in electric power generation investment {see Endnote 256}. Pakistan faces enormous new electricity generation capacity needs. To meet its growing power needs, Pakistan has actively encouraged investment to build private sector power plants. Pakistan also plans to privatize its state-owned electric utilities
{see Endnote 257}. In addition, the Pakistani government is encouraging build-operate-transfer (BOT) agreements, both for new power projects and for some of the thermal power stations managed by the country's major utility. The first major project involving foreign investment is the 1,292-megawatt Hub Power Company plant {see Endnote 258}. Hub is due to be completed in 1997. A consortium of domestic and foreign companies have provided funding for Hub Power, prominent among them are National Power (of the United Kingdom), which took a 25-percent share; Xenel (of Saudi Arabia), which took a 15-percent share; and Entergy (of the United States), which took a 10-percent share. Pakistan is benefiting from World Bank financing through a BOT scheme to develop another major electricity project, the Hab River project, which will consist of four oil-fired 323-megawatt units. A consortium of domestic and international companies has provided the financing for Hab River led by the recently-privatized electric utility Midlands Electricity PLC, of the United Kingdom {see Endnote 259}. By 1966, Pakistan had reached financial closure on at least 10 independent power projects. Foreign investors involved in these projects include AES Corp (of the U.S.), Tomen (of Japan), Japan Power Generation, and Southern Electric Power (of the United Kingdom). AES raised $560 million in financing and began construction on two 337-megawatt oil-fired power plants in Pakistan {see Endnote 260}. In addition, a joint venture oil-fired power plant between Enron and Bechtel is in the financing stage {see Endnote 261}. Other recent foreign energy investments in Pakistan include several renewable projects, such as wind power, solar, and hydro.