For the construction of Pakistan’s largest wind power plant, an associate of the World Bank Group, International Finance Corporation (IFC), is financing $66 million, besides raising further $172 million. The wind power plant will contribute to overcome the severe energy shortages and encourage renewable energy development in Pakistan.
Triconboston Consulting Corporation will be contributing the finances to help construct the farm. Additionally, it will also supervise the construction and operation of three exclusive 50-megawatt wind farms in Sindh.
Sapphire Group, a leading industrial group of Pakistan, is the owner of Triconboston. Sapphire Group emphasizes its work in textile and power.
This project is a widened contribution of IFC to help raise the participation of private sectors in Pakistan’s power industry for more capital. It will also help to expand energy resources, reduce electricity cost, and decrease pollution and use of costly fuel fossils.
Constantly growing power shortage in Pakistan is disrupting social and economic development. It has decreased approximately 2 percent of Gross Domestic Product (GDP) of the country every year.
CEO of Triconboston, Nadeem Abdullah stated:
“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”
In 2015, Sapphire Group had already launched their first wind power plant of 52.8 megawatt.
A single consortium will finance three separate plant projects for the first time in Pakistan history. This will encourage advance innovation in project finance market of Pakistan. Asian Development Bank, the Islamic Development Bank, and DEG – Deutsche Investitions-und Entwicklungsgesellschaft also financed the project.
Establishment of the wind power plant
The project is estimated to be fully functional by the end of 2018. It will be highly contributive in summer when the demand is high, supplying pure electricity to almost 600,000 residential consumers.
IFC’s director for the Middle East and North Africa region, Mouayed Makhlouf said:
“IFC has been at the forefront of investing and mobilizing financing to support private sector participation in Pakistan’s power sector. This is our fifth investment in wind power plant in the last three years in Pakistan”
Social and economic contribution
Wind power development will help diversify Pakistan’s energy mix generation by raising the volume in short time. It will also help in reducing the cost of electricity.
The project is a contribution of World Bank Group’s Pakistan Transformational Energy Initiative and Joint Implementation Plan. It aims to contribute $10 billion capital in new generation to achieve the country potential power shortage and develop sustainability of the sector.
IFC has contributed its second-largest investment in Pakistan throughout the Middle East and North Africa region. It has committed increasing investment of over $5.6 billion till now on Pakistan.