Wind energy in Pakistan: 50 MW Foundation wind farm achieves financial close

Alternative Energy Development Board (AEDB) on Wednesday declared the achievement of financial closing for 50 MW wind power project of M/s Foundation Wind Energy-I Ltd (“FWEL-I”) located at Gharo, Distt; Thatta, Sindh.

The announcement was made in a ceremony held here and the AEDB issued guarantee on behalf of the Government in favour of the Foundation Wind Energy-I Limited. The document was signed by Brig. Dr. Gulfam Alam, SI (M) (Retd), Member Board / Project Director on behalf of Foundation Wind Energy- Limited and Engr. Dr. Basharat Hasan Bashir, CEO AEDB, on behalf of the Government.
Managing Director, Fauji Foundation, Lt General ® Muhammad Mustafa Khan informed that Fauji Foundation is developing two wind farms at Gharo, Thatta, Sindh having EPC cost of around $ 223 million which being financed by Asian Development Bank and Islamic Development Bank and a syndicate of local banks led by National Bank of Pakistan.
For FWEL-I, which has achieved Financial Close today, have debt financing equal to 75% of the project cost, is Sharia Complaint basis and is the first of its kind in Pakistan.
The remaining 25% of the project cost is being financed via equity investment, 65% arranged by Fauji Foundation group (Fauji Foundation and Fauji Fertilizer Bin Qasim Ltd) and 35% by CapAsia, Malaysia.
He said that the Engineering, procurement and Construction (EPC) Contractors of both the projects is a consortium comprising of M/s Nordex Germany & M/s Descon Engineering limited, Pakistan. Both the projects are being installed with 20 Nordex Wind Turbines having capacity of 2.5 MW each.
The combined total energy output of both the project is 288 GwH per annum. He further added that on site construction works are already in progress and these two projects are targeting Commercial Operation during third quarter of 2014 and.On the occasion, Minister for Water and Power, Khawaja Muhammad Asif
congratulated Fauji Foundation for achieving this historical landmark in renewable energy sector.
He said that Pakistan possesses immense wind resources, especially in the coastal areas of the country, which had remained untapped.
He said that Pakistan offers an investment friendly and lucrative wind energy market for the investors and equipment suppliers.
The incentives offered in the Renewable Energy Policy are quite lucrative for private sector investment.
Khawaja Muhammad Asif praised the efforts of AEDB in facilitating the private sector companies. He said that the government is eyeing at commissioning of at least 1,000 MW through wind energy through private sector, and AEDB has to play a vital role in materializing this target.
The Minister said that the government also announced feed-in tariff (as fixed tariff) for wind projects.
The Minister said that Federal Government was in contact with Sindh government for their cooperation in getting more land for wind project in Gharo-Ketibandar Wind Corridor.
He said more corridors are being explored all over the country, and more wind masts are being installed in Balochistan and Punjab.
He also appreciated the AEDB team for its relentless efforts in achieving the success. He added that we are hopeful that it would be able to achieve the target with same spirit.
CEO AEDB, Engr Dr Basharat Hasan also appreciated the efforts of Fauji Foundation.
He said that NORDEX Germany is not only supplying wind turbines but also EPC Contractor of the projects.
Only a few years ago, the wind energy sector of Pakistan had little attraction to the investors and suppliers. Now seven of the top ten EPC contractors/manufacturers are ready to provide their services in Pakistan.
The financing of projects has also become available with international financing institutions like IFC, ADB, OPIC, CAP ASIA are ready to finance wind power projects.
The CEO AEDB indicated that wind energy sector is now becoming investors first choice.
A number of private sector projects of around 3000 MW capacity are underway which would help in resolving energy crises situation. The CEO AEDB added that he would also like to highlight the efforts of NTDC/CPPA, NEPRA and BOI in materializing this project and others in pipeline.