Wind energy in Pakistan: Financial closing of 56.4MW Zorlu Enerji Wind Farm

The financial closing of the 56.4 megawatts (MW) Zorlu Enerji Wind Power Project will be held on Tuesday (today). The ceremony would be witnessed among others by the Minister for Water and Power and Turkish ambassador to Pakistan.

Zorlu Enerji Pakistan is a subsidiary of Zorlu Holding, one of the largest and leading groups in Turkey and active in the energy sector through the nine companies of the Zorlu Energy Group since 1993.

The project is financed by Asian Development Bank (ADB), IFC, Eco Trade and Development Bank and Habib Bank Limited. Zorlu has signed the financing documents with the lenders of the project.

Zorlu Enerji has signed the Energy Purchase Agreement (EPA) with Central Power Purchasing Agency (CPPA) and Implementation Agreement (IA) with Alternate Energy Development Board (AEDB). The project company has successfully fulfilled all the requirements for achieving the financial closing of the project. Upon fulfillment of all requirements under the IA, the government of Pakistan guarantee has been issued to Zorlu Enerji and the financial closing of the project has been announced.

Zorlu Enerji had already initiated the civil works for the project. The lenders will make the disbursements to Zorlu Enerji after the financial closing and the project will start full-fledge construction work of the project. The first batch of wind turbines is expected to arrive in Pakistan from Spain in the first week of June. The project will be completed in the first quarter of 2013.

Zorlu Enerji installed five wind turbines of six MW in the first phase in 2009. In the second phase, Zorlu Enerji will be installing 28 wind turbines of Vestas, taking the cumulative capacity of the project to 56.4 MW.

It may be mentioned that the Zorlu Enerji, as the first wind power generation project in Pakistan, has been recently recognised by Project Finance Magazine. Project Finance Magazine is a well-known and widely read magazine by financiers, advisers, management consultants, people managing and developing projects globally and senior government officials. Project Finance Magazine has been in circulation for the last 20 years.

In recognition of its wind power project in Pakistan, Zorlu Enerji Pakistan has been honoured to receive the highly prized ‘Middle East Renewable Deal of the Year’ for 2011 by Project Finance Magazine. The prize distribution was held on March 6 in Dubai. This international recognition augured well for the government of Pakistan, AEDB and Zorlu Enerji. AEDB played a crucial role in helping Zorlu Enerji to initiate and set up this project.

Project Finance Magazine offers ‘Deals of the Year’ awards annually in Africa, Europe, Latin America, North America, India and the Middle East. These were very highly prized awards and the recipients were selected after a thorough scrutiny of projects and their fulfilling the selection criteria. Attaining this prestigious award by Zorlu Enerji amply demonstrates the ease and security of investing in the renewable energy sector in Pakistan. This is fast becoming the most reliable and safe investment sector for foreign and local investors.