GUL AHMED WIND POWER LIMITED
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
FMO's client is Gul Ahmed Wind Power Limited, a company incorporated in Pakistan, which is owned by Gul Ahmed Energy Limited (GAEL, 51%) and InfraCo Asia Indus Wind Pte Limited (Infraco Asia Indus Wind, 49%). GAEL has developed a 136 MW power plant in Pakistan, which has been in operation for the last 17 years. GAEL is largely owned by Gul Ahmed Group, a leading diversified Pakistani family business group, whose main business interest is in the textiles industry but which has identified renewable energy as part of its growth strategy in the power sector. InfraCo Asia Development Private Limited (InfraCo Asia), a donor funded infrastructure development company headquartered in Singapore. InfraCo Asia is financed by the multilateral development organization Private Infrastructure Development Group (PIDG), which was established to finance and support private investment in infrastructure. Members of PIDG include European development agencies and the World Bank Group, including IFC.
What is our funding objective?
GAEL is developing a 50 MW wind power generation plant ("The Project") in the Jhimpir Wind Corridor, Thatta District of Sindh Province in Pakistan. The Jhimpir Wind Corridor has an excellent wind source with favorable wind speeds. FMO is contributing an USD 18.3 mln B Loan to an IFC structured finance package (IFC A Loan USD11.7 mln and equity USD3.3 mln) and hence provide scare long term capital to GAEL.
Why do we fund this investment?
Renewable Energy production is the key focus of FMO's energy strategy. Pakistan has an energy shortfall resulting in regular power cuts, which results in loss of productivity and hence limits economic growth. Government of Pakistan is very supportive to renewable energy project development and consequently has created the enabling environment for potential investors and lenders to invest in the sector. Wind Power Plants - also given its relative short construction time / time to market, contribute quickly to Pakistan's energy production compared to other renewable energy sources (i.e. hydropower). When completed the Project is expected to generate an average of 154 GWh of electricity annually.
- Region
- Asia
- Country
- Pakistan
- Sector
- Energy
- Effective date
- 2/23/2015
- Total FMO financing
- USD 18.18 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+