ISLAMABAD (APP) - The Private Power and Infrastructure Board (PPIB) has achieved the financial closing of its largest gas based IPP. The PPIB has declared the achievement of financial closing for 404 MW Gross (ISO) combined Cycle Gas Turbine, Uch-II Power Project near Dera Murad Jamali, District Nasirabad, Balochistan based on indigenous low Btu Gas from Uch Gas field, said a press release issued here on Saturday. Upon financial closing, the PPIB also issued a sovereign guarantee on behalf of the Government of Pakistan in favour of the Project Company to secure the payment obligations of Power Purchaser. The Project is expected to be commissioned by December, 2013. The OGDCL will supply gas to the Project form low Btu Uch Gas field under a long term Gas Supply Agreement. The electric power generated from the Project will be sold to NTDC under a 25 years Power Purchase Agreement. The Project will bring foreign investment of around $ 500 million to the country. The Project is being financed through Dabi Equity ratio of 75:25%. The International Power UK which is a blue chip international investor with vast experience of developing power projects around the world is main sponsor of the Project. The sponsors are investing $ 124 million through equally, debt financing of $ 371 million to the Project is provided by Foreign Lenders including Asian Development Bank (ADB), International Finance Cooperation (IFC), Islamic Development Bank (IDB) and Export-Import Bank of Korea (KEXIM). Financial closing of a large IPP requiring investment of around $ 500 million demonstrates the confidence of international investors and lenders in the economy and power sector of Pakistan. In view of the prevailing power shortages and increasing dependence on imported fuel oil, the Uch-II Power Project based on indigenous low Btu gas is very important form energy security and economic perspective. The Project will not only help in curtailing the present power shortages but also provide cheap electricity to the consumers and save precious foreign exchange in oil imports. In addition, the Project will also bring revenue generation for OGDCL as the low Btu gas cannot be injected to national gas pipeline system and could not be used for any other purpose except power generation. The Project, located in remote and under-developed area of Balochistan, will work as a catalyst for socio-economic uplift of the area. This will generate economic activities and create employment opportunities for the people of the area. The Project will also entail improvement of the basic infrastructure in the vicinity and will be helpful in the poverty alleviation of the people of the remote area. The implementation of Project shows the seriousness of Government of Pakistan to develop the Balochistan Province.