In a recent announcement, Meezan Bank and Burj Solar Energy Private Limited (BSEPL) have closed a financial deal of 1 billion rupees for 7 MW solar power project. The agreement between the two companies has added one more portfolio in BSEPL’s already renewable distributed power generation in Pakistan.
Speaking about the partnership, the Chairman of BESPL, Saad Zaman said:
“I am very pleased that we have successfully reached the financial close of the 7 MW solar farm for Power Cement Limited. This is one more success for our company and a significant moment for a development of hybrid renewable energy projects in Pakistan. This successful financial close reflects the ongoing interest and trust of leading financial institutions in the Pakistani renewables’ market and Burj Group”
Roadmap of the solar plant
In the first phase, a sum of Rs. 580 million will be utilized for the building of 7 MW solar power plant. The first transaction will be used for Power Cement Limited which is located on Karachi-Hyderabad Motorway.
Under a 20-year equipment rental contract, the solar power plant will be rented to Power Cement Limited. As stated earlier, the Power Cement Limited plant is located in Nooriabad – on the outskirts of the Karachi-Hyderabad Motorway. Therefore, the generation of solar energy will ultimately be used by the cement plant.
Besides reducing the cost of electricity by multiple folds, it is anticipated that the solar plant will generated 220 GWh solar units. The projection is made for 20 years. In addition, it will offset 112,000 tons of carbon dioxide greenhouse gas (CO2 GHG) emissions. The project is likely to commence from July 2022.
While speaking on the development, the CEO of Power Cement Limited, Kashif Habib expressed his sentiments by stating:
“Our future depends on green, sustainable, and renewable sources of energy. By installing this 7 MW solar farm, we are taking the first step toward our hybrid solar and wind energy project. We shall keep playing our part in making our production process more environment-friendly. It will have positive impact for the ecosystem we live in. It is high time we look towards other viable energy options that are clean and green”
The deal was led by Meezan Bank and Pakistan Kuwait Investment Company. Both these institutions played the role of Mandated Lead Arranger and Co-Arranger respectively. Moreover, the structure of the transaction is based on SBP’s Islamic Financing Facility for Renewable Energy besides on a commercial facility.