43937-014: PAK: ZORLU ENERJI POWER PROJECT | Asian Development Bank


Nonsovereign (Private) Project | 43937-014 Status: Approved

Project Details

Project Officer
Kondo, Shinya Private Sector Operations Department Request for information
  • Pakistan
  • Energy
Project Number 43937-014
Country Pakistan
Type or Modality of Assistance
7319/2704 Loan USD 36.80 million Approved
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Private sector development
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 Kondo, Shinya
Project Sponsor(s) Zorlu Electrik Enerji Uretim
Objectives and Scope

The transaction merits ADB's assistance for the following reasons:

(i) It will increase incremental supply of energy to reduce a growing energy deficit which is seriously constraining economic growth. It also increases access to energy for households, business and industry;

(ii) Makes efficient use of an energy resource which is domestic and renewable, this reduces the reliance on expensive oil imports;

(iii) Reduces emissions of pollutants and greenhouse gases;

(iv) Sets the precedent and provides a template for future wind projects in Pakistan;

(v) Support's ADB's public sector efforts in promoting renewable energy in Pakistan; and

(vi) Increases economic growth and supports infrastructure development in one of Pakistan's poorest and most under-developed regions

(vii) The project is fully consistent with ADB's Energy Policy 2009, under which support to renewable energy generation has been identified as a key priority.

Status of Development Objectives Development objectives as stated in the objectives have been broadly met; more wind power capacity has come online since ADB provided financing for this project (106.4 MW by end of December 2013); more (almost 150 MW) is expected by December 2014. Financial close has also been achieved for 5 projects (total capacity of 250 MW); most of these projects will come on line before year end 2015.
Status of Operation/Construction Since achieving commercial operations date (25 July 2013), the project has been operating well. The plant continues to produce electricity above expectations in the first and second quarters of 2014. The actual production in the first quarter of 2014 exceeded the complex monthly power curve production (CMPCP) approved by NEPRA (regulator) by 5% and almost reached the CMPCP in the second quarter with a slight difference of 0.7 miles per second. There were no major accidents at the project site. The security situation at the plant is adequate wherein security guards are deployed at the plant premises, policemen patrolling at night, and rangers (state paramilitary force) on call from nearby Thatta in case of any emergency.
Material Changes None
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 Short-term impacts including soil erosion and contamination, air quality deterioration, noise, and safety hazards were anticipated mostly during the construction period. Impacts during wind farm operation include aesthetics impacts and bird mortality. Considerations to minimize the net impact of the project development works have been incorporated throughout the life cycle of the project from design, commissioning, and operations.
Involuntary Resettlement No people or groups in the project area were affected by the project construction and operation.
Indigenous Peoples

Since basic amenities are not available in the area, most of the local population resides in nearby villages (more than 3 km from the project site) where better educational, health, and commercial facilities are available. The land identified as the project site does not belong to any tribal group nor is it being claimed as ancestral domain. People residing in the nearby villages graze their cattle in the project area during summer when there is enough rain to allow for grazing of their animals. Since the boundary of the project area was not fenced, the local population continued to use the area as grazing ground for cattle.

The project offered some employment opportunities for local villagers, primarily during the construction phase. It had a relatively short construction period, and required some skilled and semi-skilled workers, including crane and heavy equipment operators, engineers, electricians, electronic technicians, mechanical technicians, concrete workers, and laborers. The balance-of-plant contractor accommodated as much local labor as possible from the local area.

Stakeholder Communication, Participation, and Consultation ZEPL designed an environmental management plan with organizational structure, roles and responsibilities, mitigation plan, monitoring plan, change management plan, communication and documentation, and environmental training defined to ensure that all the mitigation measures and guidelines recommended for the project in the initial environmental examination were adhered to. An audit of the existing 6 MW was carried out in accordance with ADB's Safeguard Policy Statement (2009). Public consultations were made in and around the project area to ascertain opinions concerning wind farm in the area; attitudes to specific aspects of wind energy, including visual, environmental, social, and economic dimensions; and acceptance of wind farms at the local level. The overall results of the public consultations are encouraging, with stakeholders generally very positive toward the development of the wind farm in the area.
Timetable for assistance design, processing and implementation
Concept Clearance 26 Aug 2009
Credit Committee Meeting 18 Oct 2010
Approval 24 Nov 2010
PDS Creation Date 23 Sep 2010
Last PDS Update 23 Sep 2014

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Zorlu Enerji Power Project Reports and Recommendations of the President Nov 2010
Zorlu Enerji Power Initial Poverty and Social Analysis Aug 2010

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Zorlu Enerji Power Project: Environmental and Social Development Annual Monitoring Report (FY2012) Environmental and Social Monitoring Reports May 2013
Zorlu Enerji Power Project Initial Environmental Examination Apr 2010

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

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