Pakistan contract biggest for ESB

A CONSORTIUM including the ESB has won a contract to construct and run a $500 million power station in Pakistan.

The ESB, through ESB International, will invest around $10 million (£6.4 million) for a 7 per cent stake.

In addition, ESB International will have a 13 year contract to operate and maintain the station. This contract is the largest ever won by ESB International and is worth £45 million, according to Mr Kevin McNamara, head of finance for ESB's non core activities.

The other partners in the consortium are the German engineering group Siemens, with 26.4 per cent, and local investors who hold 66.3 per cent. Siemens will build the plant, construction of which is due to start next month and take 26 months.

The shareholders are putting up $137 million in equity, with the remainder of the $500 million cost being raised as debt primarily from the World Bank.

The station is to be built at Rousch in the Pakistan province of Punjab. It is due to come into service in June 1988 and has a contract to supply power to the Pakistan national grid for 30 years. Between 10 and 20 Irish people will be employed on the project.

ESB International already operates power plants in Vietnam, the Gambia, Sierra Leone, Abu Dhabi and Malaysia. It owns 20 per cent of a power station in Corby, in the British midlands.

Recent figures for the company show that it made a profit of £4.75 million on a turnover of £42.5 million. The figures for 1995 are due to be published shortly and are expected to show a increase in turnover of more that 20 per cent.