EXIM, a Chinese bank, will extend 6.50 billion dollars credit facility at concessional mark up rate for construction of Karachi Nuclear Power Plant having 2200 power generation capacity.
As per official documents, the government is striving since 2013 for enhancing nuclear power production besides generation of power through coal resources to rein in ongoing energy crisis and for supply of electricity to the people at cheaper rates.
ECNEC accorded approval for installation of nuclear power plants at the cost of Rs 958 billions and a foreign financing was inevitable for materialising of this project. As part of financing, arrangements have been made for construction of nuclear power plant Kanup-2 and Kanup-3 Karachi.
EXIM has also agreed to provide loan amounting to 6.50 billion dollars at easy term. The government will have to mark up at the rate of 3.20 percent against this loan. Some 2.64 yens Chinese loan will be provided to Pakistan at the lowest mark up rate of one percent.
Some 4 billion dollars loan facility will be extended at the mark up rate of 2 percent per annum under preferential purchaser credit and 2.25 billion dollars credit facility will be extended at 6 percent mark up rate per year under purchaser credit. Prime Minister Nawaz Sharif has shown his consent to framework agreement reached with China in consequent upon settlement of all matters with China. Kanup-2 and Kanup-3 nuclear power plants will start generating power from 2019.