LAHORE – Fauji Foundation has entered into an agreement for equity commitments of approximately Rs 6.0 billion, of which around $20 million is being provided as foreign direct investment (FDI) by CapAsia, Singapore, through the Islamic Infrastructure Fund. Fauji Foundation in collaboration with Fauji Fertiliser Bin Qasim, Tapal Group and CapAsia will establish two wind energy farms of 50MW each in Gharo Sindh with an investment of $260 million.
The projects will be implemented through special purpose vehicles, namely Foundation Wind Energy-I Limited (formerly Beacon Energy Limited) and Foundation Wind Energy-II (Pvt) Limited (formerly Green Power (Pvt) Limited). Project debt financing of $195 million is being finalised, for which National Bank of Pakistan (NBP) has been mandated to arrange the equivalent $70 million in terms of rupees under Shariah compliant models.
The balance of funding of $125 million is to be financed by multilateral development banks for which the sponsors are in discussions with Asian Development Bank and Islamic Development Bank. Financial closure of both Projects is expected by early September 2011.
It is worth mentioning that Pakistan has huge potential in the field of wind energy more than 20,000MW capacity can be harnessed in the wind corridor at Gharo and Jhimpir, Sindh. Accordingly, Fauji Foundation has targeted of establishing four projects in Sindh, one of which, FFC Wind Energy is being implemented by Fauji Fertiliser Company. FFC Wind Energy has already achieved financial closure and operations of this wind farm are expected to commence by June 2012. The entire transaction framework for all these projects is under the auspices of the Alternative Energy Development Board, which is spearheading the development of Renewable Energy projects in Pakistan.
Fauji Foundation backs renewable energy project
