HA Utilities, the utilities investment and development arm of Hassan Allam Holding, and Ghazanfar Group have signed a debt financing package to develop an independent gas power plant in Northern Afghanistan.
The Afghan Power Plant Company, which is owned by Ghazanfar Group, will implement the $89m, 59MW power plant project in the northern Afghan city of Mazar-i-Sharif. It represents the first long-term, fully privately financed gas power plant in the country.
The package has received backing from the International Finance Corporation (IFC), the Asian Development Bank (ADB) and DEG-German Development Bank.
Hassan Allam Construction, in a joint venture with Power Generation Engineering and Services (PGESCo), has also been awarded the engineering, procurement and construction contract for the project.
Hassan Allam, CEO of Hassan Allam Holding said, “This project underscores the group’s competence of seamlessly delivering complex projects, from development and finance, to engineering and construction services and also operation and maintenance, and speaks volumes of the reputation we have worked to build internationally.”
Allam added that the contract will see his company leverage the true strength of its diversified service offering alongside Ghazanfar Group. He noted that Hassan Allam Holding is proud to work with Ghazanfar Group, which has an established track record in its own right.