National Bank of Pakistan has financed Walters Power International (WPI) Project-I at Naudero, providing Rs 2.8 billion under the Rental Power Policy of the government. The total amount for the project stands at Rs 4.584 billion including Rs 2.8 billion debt of the NBP, Rs 760 million equity and Rs 1.024 billion advance payment from the government.
In reply to a question of the National Assembly Secretariat, the Finance Ministry said the NBP opened LCs while staying within the normal banking practice. Initially, the bank invited some Development Finance Institutions (DFIs) for financing but due to procedural delays and their internal issues such as formation of BoD, etc, the DFIs were not able to participate.
The Commercial Operations Date (COD) was achieved on July 15, 2011. The WPI has repaid the amount of Rs 1.162 billion so far to NBP against the total loan of Rs 2.8 billion. The payments have been appropriated as principal repayment - Rs 499 million and mark-up payment Rs 663 million. There is no default in payments and as per the rental services contract Central Power Generation Company Ltd (CPGCL) is duty bound to remit the rental proceeds directly to NBP through which the loan repayment has been ensured.