Islamabad, Pakistan, April 22, 2015—
IFC, a member of the World Bank Group, agreed today to invest $125 million
in a leading renewable energy company to support eco-friendly power projects
in Pakistan, part of efforts to combat climate change and spur economic
growth across the country. Pakistani President Mamnoon Hussain witnessed
the contract signing.
IFC will acquire a 15 percent stake
in China Three Gorges South Asia (CSAIL), a subsidiary of the China Three
Gorges Gorges Corporation, a Chinese state-run firm. IFC's investment will
support a series of hydro, solar, and wind power projects that will provide
electricity to more than 11 million people, boost generation capacity by
15 percent, and cut the country’s reliance on imported fossil fuels.
“Pakistan is one of the most important
overseas markets of CTGC,” said Lu Chun, CTGC Chairman. “We are pleased
to contribute to the development of Pakistan’s economy, along with IFC.
China Three Gorges South Asia Investment Limited will grow together with
Pakistan’s economy, and proactively explore new cooperation opportunities
across the region.”
CSAIL is planning to invest $7 billion
in Pakistan, the largest investment in the history of the country’s power
sector. CSAIL has already completed a 50 MW wind farm and has six other
renewable projects in its pipeline, including three large hydropower projects.
Once completed, those projects will add over 9,500 gigawatt hours to Pakistan's
grid, boosting the country’s output of renewable energy by a third.
“Power shortages hinder social and
economic development in Pakistan, despite the country's significant renewable
energy potential,” said Dimitris Tsitsiragos, IFC Vice President for Global
Client Services. “This partnership fits with IFC’s strategy of encouraging
investments in emerging markets to transfer knowledge and expertise, and
help make major projects a reality. The project will increase the share
of power generation in Pakistan and encourage other investors.”
IFC’s investment in CSAIL
forms an integral part of the World
Band Group’s ‘Transformational Energy Initiative’ for Pakistan, which
aims to mobilize investments of up to $10 billion over the next five years
to address the country’s power shortage.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. Working with private enterprises in about 100 countries,
we use our capital, expertise, and influence to help eliminate extreme
poverty and boost shared prosperity. In FY14, we provided more than $22
billion in financing to improve lives in developing countries and tackle
the most urgent challenges of development. For more information, visit