Scatec and its local partner Nizam Energy have closed financing for the 150 MW Sukkur solar power project with a total investment of about US$100 million.
FMO, Faysal Bank, Bank of Punjab, and PAK Kuwait Investment have signed credit agreements for the non-recourse debt financing of the Sukkur project. Half of the debt quantum is provided by FMO under a credit facility of US$39 million and the other half by the three local commercial lenders under PKR denominated credit facilities of an aggregated PKR2.2 billion (US$13.8 million). The credit facilities cover up to 75% of the total project cost.
The Sukkur project portfolio located in the province Sindh, southeast in Pakistan, was awarded a “costs plus tariff” by the National Energy Power Regulatory Authority (NEPRA) early in 2020. Scatec and its local partner, Nizam Energy are now working to start construction within first half 2021. Scatec will provide engineering, procurement and construction (EPC), and provide Operation & Maintenance, as well as Asset Management Services to the power plants. Scatec will hold 75% of the equity, with Nizam Energy holding the remaining 25%.
