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%).
| 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 | Pakistan |
||||||||||
| Location | |||||||||||
| Type or Modality of Assistance |
|
||||||||||
| 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) | |||||||||||
| 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. |
||||||||||
| Status of Operation/Construction | FWE I achieved financial close on 23 July 2013 and first disbursement under Islamic Development Bank's tranche occured 23 August 2013. FWE II has already fully mobilized the EPC contractor after achieving Financial Close on 3 April 2013 and subsequent first disbursement on 16 April 2013. Construction for both projects is on going. Required CODs are January 2015 and October 2014 for FWE I and FWE 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 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 |
| Credit Committee Meeting | 07 Nov 2011 |
| Approval | 08 Dec 2011 |
| PDS Creation Date | 16 Jun 2011 |
| Last PDS Update | 21 Mar 2018 |
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.
| Title | Document Type | Document Date |
|---|---|---|
| Foundation Wind Energy I and II Projects: Extended Annual Review Report | Extended Annual Review Reports | Oct 2019 |
| 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
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 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.