Pakistan: PAK: FOUNDATION WIND ENERGY I AND II PROJECTS

Nonsovereign Project | 45905-014

Summary

PAK: FOUNDATION WIND ENERGY I AND II PROJECTS

Foundation Wind Energy I: The project involves construction, erection and operation of 50 MW of wind generation capacity, at Kutti Kun, close to the port city of Karachi. The project will sell electricity to the national grid under 20-year take-or-pay offtake contracts. The project spnsors are Fauji Foundation (30%), Fauji Fertlizer Bin Qasim Limited (35%) and Islamic Infrastructure Fund (35%).

Foundation Wind Energy II: The project involves construction, erection and operation of 50 MW of wind generation capacity, at Kutti Kun, close to the port city of Karachi. The project will sell electricity to the national grid under 20-year take-or-pay offtake contracts. The project spnsors are Fauji Foundation (20%), Fauji Fertlizer Bin Qasim Limited (35%),Islamic Infrastructure Fund (25%) and Tapal Group (20%).

Latest Project Documents

Consulting Notices

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Project Name PAK: FOUNDATION WIND ENERGY I AND II PROJECTS
Project Number 45905-014
Borrower/Company FOUNDATION WIND ENERGY II LIMITED
FOUNDATION WIND ENERGY I LIMITED
Country Pakistan
Location Kutti Kun, Pakistan
Approval Number 7348/7348-002, 7348/7348-001
Type or Modality of Assistance
7348/7348-001 Partial Credit Guarantee without Govt Guarantee USD 33.43 million Approved
7348/7348-002 Partial Credit Guarantee without Govt Guarantee USD 33.18 million Committed
Strategic Agendas
Drivers of Change
Sector / Subsector Energy - Renewable energy generation - wind
Gender Equity and Mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Shinya Kondo
Project Sponsor(s) Tapal Group
Islamic Infrastructure Fund
Fauji Fertilizer Bin Qasim Limited
Fauji Foundation
Description

PAK: FOUNDATION WIND ENERGY I AND II PROJECTS

Foundation Wind Energy I: The project involves construction, erection and operation of 50 MW of wind generation capacity, at Kutti Kun, close to the port city of Karachi. The project will sell electricity to the national grid under 20-year take-or-pay offtake contracts. The project spnsors are Fauji Foundation (30%), Fauji Fertlizer Bin Qasim Limited (35%) and Islamic Infrastructure Fund (35%).

Foundation Wind Energy II: The project involves construction, erection and operation of 50 MW of wind generation capacity, at Kutti Kun, close to the port city of Karachi. The project will sell electricity to the national grid under 20-year take-or-pay offtake contracts. The project spnsors are Fauji Foundation (20%), Fauji Fertlizer Bin Qasim Limited (35%),Islamic Infrastructure Fund (25%) and Tapal Group (20%).

The two project sites are very close to each other and are being jointly developed and will have the same set of EPC contractors and financiers.

Objectives and Scope

The proposed transactions merits ADB's assistance for the following reasons:

(i) ADB is providing financing to a critical power sector asset; this is a sector that does not readily have access to long-term funding;

(ii) The successful implementation of the Projects is expected to foster confidence amongst potential investors and lenders and promote further private sector investment in the country's renewable energy and power sector.

(iii) The presence of ADB reassures the sponsors that the government entities will continue to support these Projects throughout their life;

(iv) The Project will contribute toward creating employment opportunities, stimulating economic growth, and developing infrastructure.

Linkage to Country/Regional Strategy The project is consistent with ADB's long-term strategic framework (Strategy 2020) which emphasizes ADB's support for environmentally sustainable infrastructure projects and private sector development. ADB's support for the Project is in line with Pakistan's 2009 13 Country Partnership Strategy (CPS) and GoP's strategic emphasis on energy sector development. The Project will also help ADB to meet its commitment under the Energy Policy to undertake clean energy investments of $2 billion per year from 2013 ($1 billion per annum until then).
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The Project is unlikely to create significant environmental impacts during construction and operation, and hence classified as Category B for environment. The proposed project site is not known to be claimed, used nor owned by Indigenous Peoples communities. Also, no sites of cultural heritage are known to exist at or in the immediate vicinity of the proposed project. The Projects are proposed to be classified as Category C for involuntary resettlement and indigenous peoples.
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation Stakeholder consultations were carried out as part of the IEE study. These consultations were conducted with the institutional as well as the grassroots stakeholders. The main objectives of the consultations were to: apprise the stakeholders about the proposed project activities; obtain their views, concerns and recommendations; and address/incorporate them in the project design thus enhancing the environmental and social performance of the project. The participants generally welcomed the plans to establish the proposed power plant in the area. Since the project would not directly affect them, the villagers generally did not have any apprehension or reservation about the project. On the contrary, they expected that the project would bring employment and small business/trade opportunities for the local population.
Timetable for assistance design, processing and implementation
Concept Clearance 28 Mar 2011
Due Diligence 18 Aug 2011
Credit Committee Meeting 07 Nov 2011
Approval 08 Dec 2011
PDS Creation Date 16 Jun 2011
Last PDS Update 17 Sep 2014
Title Document Type Document Date
Foundation Wind Energy I and II Projects: Project Data Sheet (Urdu Translation) Translated PDS Sep 2014
Foundation Wind Energy I and II Projects Reports and Recommendations of the President Nov 2011

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Foundation Wind Energy Projects I and II Initial Environmental Examination Nov 2011
Foundation Wind Energy Projects I and II (Draft) Initial Environmental Examination Oct 2011

Evaluation Documents

See also: Independent Evaluation

No documents found.


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