Wärtsilä to deliver another major power plant to Pakistan - value of the deal EUR 137 million

Wartsila Corporation
  • Stock exchange release
23 March 2009 at 9:45 AM E. Europe Standard Time

Wärtsilä has received another major order from Pakistan. The order was placed by Liberty Power Tech Ltd. which is an independent power producer (IPP). The value of the contract is approximately EUR 137 million. The total gross electrical power output of the power plant is 200 MWe and the plant will be located near Faisalabad some 200 km west from Lahore.

The power plant is due to be commissioned in December 2010 and it will supply electricity to the country’s national grid. This order follows three other IPP projects signed by Wärtsilä in 2007 and 2008. Including these last four orders the total generating capacity delivered by Wärtsilä to Pakistan will exceed 1700 MWe.

The Liberty Power Tech combined cycle solution is an EPC (engineering, procurement and construction) order and it will comprise eleven Wärtsilä 18V46 generating sets. In addition to the equipment supply, Wärtsilä will also erect, test and commission the plant and provide local construction supervision. An O&M contract to operate and maintain the power plant is also under negotiation between Wärtsilä and the customer.

"Wärtsilä and Liberty Power Tech have worked together as one team throughout the development of the project. The need for power generation and energy production is growing rapidly in Pakistan. With Wärtsilä´s strong support and advisory services we have been able to arrange the financing for the power plant project,” says Mr Ashraf Mukaty, Sponsor Director of Liberty Power Tech Ltd. The company is owned by Salim Mukaty and his family, who also own Liberty Mills, one of the leading textile groups in Pakistan.

The Liberty Power Tech power plant will have a notably high overall efficiency of 45 percent for the lifetime of the plant when running on heavy fuel oil at site conditions. This level of efficiency on low-cost fuel oil will enable the generating costs to be very competitive.

 “We are especially pleased to have been awarded this project contract, and look forward to serving Liberty Power Tech throughout the lifecycle of the project. This order endorses not only the reputation of the Wärtsilä equipment, but also the service capability that we are able to provide from our office and workshop in Lahore,” says Nomi Ahmad, Regional Director, Middle East, Wärtsilä Power Plants.

Liberty Power Tech has signed a Power Purchase Agreement with the National Transmission & Despatch Company, and an Implementation Agreement with the Government of Pakistan under the 2002 Energy Policy of Pakistan.

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For further information, please contact

Mr Christoph Vitzthum
Group Vice President
Wärtsilä Power Plants
Tel: +358 10 709 5670
christoph.vitzthum@wartsila.com

Mr Atte Palomäki
Group Vice President, Communications
Wärtsilä Corporation
Tel: +358 40 547 6390
Email: atte.palomaki@wartsila.com

For investor information, please contact:

Ms Josephine Mickwitz
Director, Investor Relations
Tel: +358 400 784 889
josephine.mickwitz@wartsila.com

Wärtsilä in brief
Wärtsilä enhances the business of its customers by providing them with complete lifecycle power solutions. When creating better and environmentally compatible technologies, Wärtsilä focuses on the marine and energy markets with products and solutions as well as services. Through innovative products and services, Wärtsilä sets out to be the most valued business partner of all its customers. This is achieved by the dedication of close to 19,000 professionals manning 160 locations in 70 countries around the world.