Foundation Wind Energy-I Limited and Foundation Wind Energy-II (Pvt) Limited entered into an Implementation Agreement (IA) with the Government of Pakistan for the establishment of two wind power projects of 50 MW each, in Gharo, Sindh, here on Tuesday. Formal Financial Close of the two wind power projects would be done, shortly.
Foundation Wind Energy Limited- I and Foundation Wind Energy Limited- II are two independent subsidiaries of a prestigious national organisation, Fauji Foundation. The agreement was signed by Brigadier Dr Ghulfam Alam (Retd), Member Board / Project Director of the two power project entities, on behalf of Foundation Wind Energy-I Ltd and Foundation Wind Energy II Ltd and Mr Arif Alauddin, CEO AEDB, on behalf of the Government of Pakistan.
Managing Director of the two companies, Lieutenant General Muhammad Mustafa Khan (Retd) speaking on the occasion briefed about the projects. He informed that the two wind farms having total project cost of approx. US $251 Million are being financed by Asian Development Bank and Islamic Development Bank and syndicate of local banks led by National Bank of Pakistan.
The debt financing, which is 75percent of the project cost, is purely Sharia Complaint and is the first of its kind in Pakistan. The remaining 25 percent of the project cost is being financed via equity investment, arranged by Fauji Foundation group (Fauji Foundation and Fauji Fertiliser Bin Qasim Ltd), CapAsia Singapore and Tapal Group Karachi.
He said that the Engineering, Procurement and Commissioning (EPC) Contractor of both the projects is with a consortium comprising M/s Nordex Germany & M/s Descon Engineering Limited, Pakistan. Both the projects are being installed with a cumulative of forty Nordex Wind Turbines each having a capacity of 2.5 MW. The combined total energy output of both the projects in approx. 288 Gwh per annum.
He said that the two projects were targeting to have their Energy Purchase Agreement, signed in December 2012 and achieve financial closure immediately thereafter. Financing agreement was signed in May, 2012. The completion period, of each project, is 15 month from Financial Close, and both the projects are being targeted to be operational during second quarter of 2014. He said that FFC Wind Energy Limited (FFCEL) has already established a 50MW Wind project, which is ready to be commissioned during the current month.
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