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IFC and China Three Gorges Corporation to Address Power Shortage in Pakistan


In Cairo:
Riham Mustafa
Phone: + (202) 2461-4230
E-mail: rmustafa@ifc.org


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.
 
About IFC
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 www.ifc.org.

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