IFC to finance wind project in Pakistan
The International Finance Corporation (IFC) is considering financing the development of a 50 MW wind power facility in Pakistan.
The total project cost is estimated up to US$132 million and is proposed to be funded with a debt to equity ratio of 75:25. IFC is considering to invest up to US$15 million through a combination of A Loan (US$11.7 million) and equity (US$3.3 million) and to mobilize up to US$38 million of the project costs. The balance debt would be arranged by a consortium of local Pakistani commercial banks.
The project will be developed by Gul Ahmed Wind Power Limited (GAWPL), which is owned by Gul Ahmed Energy Limited (51%) and InfraCo Asia (49%).
The project is located over an area of 2.62 km² (already acquired via lease) in the Jhimpir Wind Corridor, Thatta district of Sindh province in south-eastern Pakistan, about 100 km east of Karachi.
The project involves engineering, design, procurement, construction, turbine erection, grid tie-in, commissioning and operation & maintenance of the 50 MW wind power generation facility.
The project will be an independent power producer (IPP) and will sell electricity to the National Transmission and Dispatch Company Limited (NTDC) under a 20-year energy purchase agreement (EPA). NTDC’s payment obligations under the EPA will be guaranteed by the Government of Pakistan.
The project will promote the use of renewable energy sources for power generation in Pakistan. As of today, wind power represents less than 1% of total generation capacity.
