IFC’s $75m backing for wind power in Pakistan

The IFC is supporting the development of wind power in Pakistan to tackle the country’s power shortage.

The International Financial Corporation (IFC), the investment arm of the World Bank, is planning to lend up to $75 million to Triconboston Consulting Corporation (Private) Limited, a Pakistan-based energy company.

The total project cost is estimated to be around $335 million, with a 75:25 debt to equity ratio.

The project comprises the design, development, construction, operation and maintenance of a 147.9-megawatt greenfield wind power project in Pakistan, consisting of three adjacent wind turbines in the Jhimpir wind corridor in Sindh province.

The project will be connected to the national grid and sell the entire electricity production to the state-owned Central Power Purchasing Agency Guarantee Limited (CPPA-G) under a 20-year Energy Purchase Agreement (EPA). It is expected to generate 522.8 GWh of electricity per annum.

“We will provide sustainable long-term financing for the development of a large renewable energy project, which is not easily available in the local market,” IFC said in a statement.

The project will add incremental generation capacity to address the current power supply shortfall in Pakistan as well as developing renewable energy to serve as a sustainable source of power generation.

Triconboston Consulting Corporation is special vehicle owned by the Sapphire Group for the development and operations of the project. Pakistan-based Sapphire Group focuses on export-oriented textile manufacturing and trading businesses. It has built a portfolio of private power generation assets, with its first 225MW CCGT IPP commissioned in 2010, and a 52.8MW wind power project having gone into operation in 2015.

IFC has been actively investing in the power sector in emerging markets to increase their power supply for development. In June, it said it planned to lend up to $170 million to Indian independent power producer Summit Corporation Limited.