ISLAMABAD: The International Finance Corporation (IFC) of the World Bank group will invest $27.5m in the construction of a terminal at Port Qasim, thus enabling Pakistan to import liquefied natural gas (LNG).
According to details, the IFC’s investment in the $130m project will be $7.5m in the form of equity for 20 percent shareholding, and a loan of $20m that will assist the project in securing long term debt financing from other foreign and local lenders. The financing is scheduled to be approved by the World Bank group in mid-September. IFC’s involvement in a Greenfield project with an established local sponsor will exert a strong signalling effect to private investors, encouraging greater private participation in future energy sector projects.
The project will support development of energy infrastructure needed to address the country’s growing gas supply deficit, helping reduce its reliance on future imports of oil and helping relieve an on-going constraint in the country’s balance of payments.