Project detail - Dhabeji Hybrid Park

Who is our prospective customer?

The Project is developed by a consortium comprising (i) JCM Power Corporation, which holds 51 percent equity stake and is a Canadian Independent Power Producer with approximately 240 MW of operational capacity and a development pipeline exceeding 1 GW of wind and solar PV projects across South Asia, Southeast Asia, and sub-Saharan Africa; (ii) BEIML, holding 30 percent, an investment firm specialized in renewable power projects with portfolio of 50 MW Wind and 7 MW Solar PV projects in Pakistan; and (iii) RNA, holding the remaining 19 percent, a leading renewable energy developer in Pakistan.

What is our funding objective?

FMO participates in a senior loan project financing up to USD 75 million to finance the 240 MWac Wind and Solar PV in Jhimpir wind corridor in Pakistan, alongside other lenders. The proceeds of the long-term financing are earmarked for the investment needed for the development, construction, and operation of the Project. Long-term USD debt funding for project finance is scarce on the local market.

Why do we want to fund this investment?

This financing aligns with FMO's Energy sector strategy by supporting a fully green project (100% green label) in a lower-middle-income country (LMIC). The investment will be fully utilised for the wind and solar PV project, advancing the shift toward sustainable energy. This approach also supports Pakistan's goal of reaching an energy mix with 60% renewable resources by 2030.

What is the Environmental and Social categorization rationale?

The Project is categorized as E&S Category B+, triggering Performance Standards (PS) 1-4 and 6, and to a lesser extent, PS 5. Key risks under PS 1-4 include standard construction-related risks, such as labour and working conditions, the health and safety of workers and communities, community expectations regarding benefit sharing, waste management, the transport of abnormal loads of wind turbine components, among others. Key PS 6 risks are related to natural habitats and potential critical habitat management within the project area. The project is located near Important Bird Area (IBA) and may lead to cumulative impacts, as it sits within the Jhimpir Wind Corridor along with other wind projects. In relation to PS 5, the project will not result in the physical resettlement or economic displacement of formal or informal land users, and the land is secured via a government lease. Due to pastoralism activity in the area, the project requires implementing safeguards to address the impact of access rights. Performance Standards 7 and 8 risks are not applicable, as confirmed by an external E&S assessment. The investment will be managed in accordance with the IFC PSs, and an Environmental & Social Action Plan will be part of the investment agreement. The Project consortium commits to implement the ESAP and FMO, along with Project lenders, will closely monitor the ESAP implementation.