Pakistan: PAK: FOUNDATION WIND ENERGY I AND II PROJECTS

Nonsovereign Project | 45905-014

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.

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 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.

Project Details

  • Project Officer
    Ahmed, Salman
    Private Sector Operations Department
    Request for information
  • Country/Economy
    Pakistan
  • Sector
    • Energy
Project Name PAK: FOUNDATION WIND ENERGY I AND II PROJECTS
Project Number 45905-014
Borrower / Company FOUNDATION WIND ENERGY I LIMITED
FOUNDATION WIND ENERGY II LIMITED
SWEDISH INTERNATIONAL DEVELOPMENT COOPERATION AGENCY
Country / Economy Pakistan
Location
Type or Modality of Assistance
7348-001 Guarantee Ordinary capital resources USD 33.43 million Committed
7348-002 Guarantee Ordinary capital resources USD 33.18 million Committed
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 Ahmed, Salman
Project Sponsor(s) FAUJI FERTILIZER BIN QASIM
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.

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 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.

Status of Operation/Construction FWE I and II achieved COD on 11 April 2015 and 10 December 2014, respectively. Financial close was achieved on 23 July 2013 and 3 April 2013 for FWE I and II, respectively.
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 FWE I and II projects were categorized as environment category B. FWE I and FWE II prepared the initial environmental examination to comply with the requirements of the ADB Safeguard Policy Statement (2009) and the Pakistan government. The Sindh Environmental Protection Agency issued the environmental clearance prior to project implementation. The projects are fully compliant with the applicable national laws and regulations for (i) pollution prevention (air, water, noise and vibration, waste, soil); (ii) waste management; (iii) hazardous materials management; (iv) wildlife protection; (v) occupational health and safety; (vi) labor and employment; (vii) energy development; and (viii) cultural heritage protection. The projects also adhered to international standards such as ISO 14001:2015 (Environmental Management System) and International Finance Corporation's Environment, Health and Safety (EHS) Guidelines for Wind Energy. An occupational health and safety plan, developed to support the implementation of ISO 14001 (Environmental Management System), is mainstreamed in the projects' operations. This plan aims to identify potential hazards and develop responses or mitigating measures to eliminate sources of risk or minimize workers' exposure to hazards during normal operation on regular preventive maintenance works (cleaning and greasing activities) for the wind power facilities. The O&M contractors regularly conduct relevant EHS trainings and emergency mock drills to continuously increase the level of safety awareness and technical knowledge of the EHS staff and workers.
Involuntary Resettlement The FWE I and II projects were categorized as C for involuntary resettlement (IR). The land where the projects are located is under lease to the borrowers by the Alternative Energy Development Board. The transmission line was constructed by the NTDC within its existing right of way. The development of the projects did not lead to any IR impact. Prior to project construction, the area was uninhabited and only used as access by some local fishermen to the coastal area to fish. The internal access road developed by the borrower is presently used by 20-30 local residents daily to access the fishing ground.
Indigenous Peoples The FWE I and II projects were categorized as C for indigenous peoples impact. Each project site does not belong to any tribal group, nor is it being claimed as an ancestral domain.
Stakeholder Communication, Participation, and Consultation Consultations with relevant institutions and nearby communities were carried out as part of the IEE study to inform them of the proposed projects and potential impacts, obtain their views and concerns, and incorporate them to enhance the project design. Community engagement at present involves updating communities and other stakeholders on project activities. The nearby communities have been vocally appreciative of the activities implemented by the borrowers in their area, most importantly the potable water system, home solar systems, micro-finance loans and a refurbished school. No complaints have been received to date from the community regarding the project. Local communities are aware of how grievances in relation to the project can be raised including the contact person they can approach on project-related matters. The General Manager, aside from being in charge of workers' welfare and grievances, also serves as the Community Relations Officer for the projects. Since the projects have been in operation, he has only been approached for assistance or project requests. No grievances have been raised by the workers and communities. Aside from corporate social responsibility activities implemented by the borrowers, local people recognize the value of the employment provided to the local people during construction and operation.
Timetable for assistance design, processing and implementation
Concept Clearance 28 Mar 2011
Credit Committee Meeting 07 Nov 2011
Approval 08 Dec 2011
PDS Creation Date 16 Jun 2011
Last PDS Update 05 Aug 2022

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 Access to Information Policy (AIP) 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.


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
Foundation Wind Energy I and II Projects: Bird Monitoring Environmental and Social Monitoring Report (July-September 2021) Environmental and Social Monitoring Reports Sep 2021
Foundation Wind Energy I and II Projects: Environmental and Social Monitoring Report (July 2020-June 2021) Environmental and Social Monitoring Reports Sep 2021
Foundation Wind Energy I and II Projects: Bird Monitoring Environmental and Social Monitoring Report (April-June 2021) Environmental and Social Monitoring Reports Jun 2021
Foundation Wind Energy I and II Projects: Bird Monitoring Environmental and Social Monitoring Report (January-March 2021) Environmental and Social Monitoring Reports Mar 2021
Foundation Wind Energy I and II Projects: Bird Monitoring Environmental and Social Monitoring Report (July-September 2020) Environmental and Social Monitoring Reports Sep 2020
Foundation Wind Energy I and II Projects: Environmental and Social Monitoring Report (July 2019-June 2020) Environmental and Social Monitoring Reports Aug 2020
Foundation Wind Energy I and II Projects: Bird Monitoring Environmental and Social Monitoring Report (April-June 2020) Environmental and Social Monitoring Reports Jun 2020
Foundation Wind Energy I and II Projects: Environmental and Social Monitoring Report (July 2018-June 2019) Environmental and Social Monitoring Reports Jul 2019
Foundation Wind Energy I and II Projects: Environmental and Social Monitoring Report (July 2017-June 2018) Environmental and Social Monitoring Reports Sep 2018
Foundation Wind Energy I and II Projects: Environmental and Social Monitoring Report (July 2015-June 2016) Environmental and Social Monitoring Reports Oct 2017
Foundation Wind Energy I and II Projects: Environmental and Social Monitoring Report (July 2016-June 2017) Environmental and Social Monitoring Reports Aug 2017
Foundation Wind Energy I Project: Environmental and Social Monitoring Report (July 2014-June 2015) Environmental and Social Monitoring Reports Jun 2015
Foundation Wind Energy II Project: Environmental and Social Monitoring Report (July 2014-June 2015) Environmental and Social Monitoring Reports Jun 2015
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

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) 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.

Requests for information may also be directed to the InfoUnit.