ISLAMABAD: The Asian Development Bank (ADB) is likely to approve $36.8 million credit to the Turkish company Zorlu Enerji for its investment in constructing of Pakistan’s first 56.4 megawatt (MW) wind power plant near Jhimpir in Sindh province.
According to sources the project is sanctioned by ADB President Haruhiko Kuroda and has sent to the board for approval. The loan to Zorlu Enerji will be diverted from ADB’s ordinary capital resources, with interest based on London interbank offered rate (LIBOR).
The project entails the construction and operation of a 56.4 MW wind power farm. Once completed, the project will be Pakistan’s first privately financed wind power project constructed under the 2006 Renewable Energy Policy. The project will supply power to the national grid under a 20-year take-or-pay energy purchase agreement with a tariff approved by the National Electric Power Regulatory Authority (NEPRA).
The success of this project is expected to provide lessons for other investors who are considering investing in Pakistan’s renewable energy sector. Pakistan’s power sector faces a major supply deficit, restricting the country’s already fragile economic growth.
The peak demand in hot and humid summer season was 18,926 MW in 2010, but the supply was limited to 14,723 MW, resulting in a shortfall of 4,203 MW. Pakistan’s energy generation is highly dependent on imported fossil fuels. The country imports over $10 billion worth of oil each year, the bulk of which is used for electricity generation. This is equivalent to about 34 percent of country’s total imports.
Zorlu Enerji owns five gas-fired power generation assets in Turkey with a total installed capacity of 460 MW. Zorlu Enerji also owns and operates Turkey’s largest wind farm 135 MW Osmaniye Rotor plant.
Zorlu Holding owns 68 percent of Zorlu Enerji. Zorlu Holding is one of the largest conglomerates in Turkey with holdings in textiles, polyester yarn, energy, construction, power plant operation, information technology, real estate and tourism.
