Dawood Lawrenceupur Limited has enhanced its tranche of investment from $10 million to $15 million for its power producing subsidiary Tenaga Generasi based in Gharo, Sindh.
The decision was taken in the recent meeting of the Board of Directors, which recommended enhancing the share of investment by way of loans for the power producing project.
In this regard, Dawood Lawrencepur signed an accord with Citibank in Karachi as an onshore security trustee and Citibank London as an offshore trustee. This was done to ensure the transaction of money to its subsidiary on the basis of Standby Letter of Credit (SBLC).
The Standby Letter of Credit of $15 million will issued by Standard Chartered of Pakistan in favor of the power producing company to its inter-creditor agent, Citibank.
Citibank Pakistan will be playing its due role in the corporate banking sector, as part of its designation as an onshore security trustee by Dawood Lawrencepur to make investment of $15 million in Tenaga Generasi as per the sponsor support agreement.
About Tenaga Generasi
Tenag Generasi is a subsidiary of Dawood Lawrencepur Limited (DLL). The company is in the process of setting up a 50MW Wind Energy Project in the main wind corridor of Gharo, Sindh – about 90 minutes from Karachi, at a projected cost of USD $130 million.
Tenaga Generasi Limited (TGL), a Malaysian company, was incorporated in Pakistan in 2004 for the purpose of setting up a 50MW Wind Power Plant. In January 2008, the company decided to exit Pakistan. TGL was acquired by Dawood Lawrencepur Limited(DLL) since then. It is now a subsidiary of Dawood Lawrencepur Limited (DLL) with a 75 percent stake.
Following the purchase, Alternate Energy Development Board (AEDB) in April 2008 increased the land allocation to 4881 acres. This land is sufficient for setting up a 100MW wind farm. The current development plan envisages the setting up of a 50MW wind farm in the first phase, which would then be increased to 100MW.
Besides this, commissioning of a second power project has been completed in the area of Mipur Sakro, District Thatta, Sindh.