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Pakistan secures $320m of DFI financing for Super Six wind projects
PAKISTAN
THE IFC has agreed to provide of $320mn of financing for six of Pakistan’s new generation of IPP wind projects, which aim to bring 560 MW of grid-connected capacity to the country.
Pakistan’s Alternative Energy Development Board is supporting 11 IPP projects in total by providing implementation agreements with pri- vately run independent power producers (IPPs).
The IFC, the private sector arm of the World Bank, is to support the so-called super-six pro- jects, which will offer 310 MW of onshore wind capacity and cost $450mn, the IFC said.
The IFC is to provide $86mn of financing from its own account and will mobilise $234mn from development finance institutions (DFIs) and private lenders, including Deutsche Inves- titions- und Entwicklungsgesellschaft and local banks Bank Alfalah, Bank Al Habib and Meezan Bank.
The financing agreements were signed today by IFC senior manager Nadeem Siddiqui and private sector power developers at a special cer- emony witnessed by Pakistan Prime Minister Imran Khan and Federal Minister for Energy Omar Ayub.
The Super Six will be built in the Jhimpir wind corridor in Sindh Province and will generate more than 1,000 GWh per year.
They are being developed by local companies ACT Group, Artistic Milliners, Din Group, Gul Ahmed Group and Younus Brothers Group.
Pakistan’s heavy reliance on fossil fuel imports has resulted in high power prices and has con- tributed to greenhouse gas (GHG) emissions. Oil
imports account for nearly 29% of all imports. The Super Six projects will help meet growing demand and reduce reliance on highly polluting imported fuel. They are also expected to contrib- ute to a reduction in carbon dioxide emissions of about 650,000 tonnes per year (tpy). Energy currently accounts for the largest share of GHG
emissions in Pakistan.
Demand for energy is high. About 50mn peo-
ple — nearly half of the population in Pakistan’s rural areas — has no electricity, and blackouts of up to 10 hours were rampant in urban areas until two years ago.
The availability and reliability of electricity is rated among the worst in the world, according to the World Economic Forum’s 2019 Global Com- petitiveness Report.
Ayub said: “The government is aiming to increase the non-hydro renewable energy share in the overall generation mix from 4% to 20% by 2025, and it is welcoming to see Pakistan’s local private sector behind these Super Six wind pro- jects, supporting the government’s long-term objective to see more wind and solar in the coun- try’s energy mix.”
IFC vice-president for Asia and Pacific Nena Stoiljkovic said: “This additional clean power will help meet growing demand, reduce the average cost of electricity, and improve both reliability and security of supply.
“We hope this will send a strong signal to the private sector that the renewable energy market in Pakistan is viable and sustainable, as well as beneficial to the Pakistani people.”
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