MAN, the German engineering conglomerate, said on Thursday that its subsidiary, MAN Diesel, had signed a deal with Pakistani Atlas Group to build diesel power plants in Pakistan.
The co-operation agreement "covers the development, design, construction and maintenance of four turnkey diesel power plants from 120 to 225 megawatt in size, to be completed by 2012," said MAN Diesel chief Georg Pachta-Reyhofen.
The four power plants were all to be built in the north of Pakistan, near the city of Lahore, with the first plant to come into operation in Sheikhupura in March 2009. MAN Diesel would supply the engines for the plant and the contract also included operation and maintenance of the plant for 10 years. "The order volume for this first stage is about 200 million euros" (268 million dollars), MAN said.
Under the terms of the partnership, MAN Diesel would be responsible for the construction and operation, while the Atlas Group would "configure economic and financial aspects," it said.