Islamabad, Pakistan, May 11, 2017—IFC,
a member of the World Bank Group, is providing $66 million, and mobilizing
a further $172 million, in a landmark transaction to help build Pakistan’s
largest wind power farm, to address severe energy shortages and boost the
development of renewable energy.
The financing to Triconboston Consulting Corporation will help construct
and operate three new 50-megawatt wind farms in Sindh province. Triconboston
is majority owned by the Sapphire Group, a leading Pakistani industrial
group, with significant interests in textile and power.
The project is part of IFC’s broader efforts to foster private participation
in Pakistan’s power sector to increase investments, help diversify energy
sources, cut the cost of electricity, and reduce the use of polluting and
expensive fossil fuels. Pakistan suffers from frequent power cuts that
hamper social and economic development, and cost the country an estimated
2 percent of gross domestic product every year.
“The new wind farm will generate reliable, clean energy at lower prices
and help reduce pressure on the country’s power grid, while mitigating
climate change,” said Nadeem Abdullah, Triconboston CEO. “It is testament
to Sapphire’s ambition to become a leading renewable power developer in
Pakistan, after having already successfully commissioned our first 52.8-megawatt
wind farm in 2015.”
This is the first time in Pakistan that a portfolio of three separate plants
will be internationally financed by a single consortium, bringing further
innovation to Pakistan’s project finance market. Other financiers include
the Asian Development Bank, the Islamic Development Bank, and DEG – Deutsche
The plant is expected to be fully commissioned by the end of 2018 and will
make its greatest contributions during the high-demand summer months, providing
clean power to about 600,000 residential customers.
“IFC has been at the forefront of investing and mobilizing financing to
support private sector participation in Pakistan’s power sector,” said
Mouayed Makhlouf, IFC’s director for the Middle East and North Africa
region. “This is our fifth investment in wind power in the last three
years in Pakistan. The project will also support Sapphire in their diversification
strategy in renewables.”
The development of wind power contributes to the diversification of Pakistan’s
energy generation mix by increasing capacity with shorter lead times and
also helping to reduce electricity prices.
The work is part of the World Bank Group’s Pakistan Transformational Energy
Initiative and Joint Implementation Plan, which aims to mobilize $10 billion
in new generation investments to address the country’s acute power shortage
and improve sector sustainability.
Pakistan represents IFC’s second-largest engagement in the Middle East
and North Africa region, with over $5.6 billion in cumulative investments
committed to date.
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with 2,000 businesses worldwide, we use our six decades of experience to
create opportunity where it’s needed most. In FY16, our long-term investments
in developing countries rose to nearly $19 billion, leveraging our capital,
expertise and influence to help the private sector end extreme poverty
and boost shared prosperity. For more information, visit www.ifc.org