CDC Group (soon to become British International Investment - BII) and Gul Ahmed Metro Group (GAM) announced their partnership to form the Metro-BII Renewables joint venture.
The new joint venture builds on the existing partnership between the UK’s development finance institution and GAM, a Pakistani family-owned business with expertise in Pakistan’s power sector, and it will aim to develop and operate up to 500MW of renewable energy assets in Pakistan.
Metro-BII Renewables aims to add up to 500 Megawatts (MW) of primarily greenfield low-cost renewable power to Pakistan’s grid over the medium term, and has a current generation capacity of 110MW.
The JV will boost clean power generation, providing electricity to over 850,000 consumers in Pakistan. Moreover, up to 17,000 jobs will be supported across the country, as a result of the increased power capacity. In addition, Metro-BII Renewables will help the country de-carbonise as the joint venture’s target capacity size will help avoid an estimated 728,000 tonnes of carbon dioxide per year, for the planet.
This new joint venture will strengthen collaboration between CDC and GAM and foster knowledge sharing from both firms’ experience within the local and regional power sector.
Under the terms of the joint venture, CDC will acquire a significant minority stake in Metro Wind Power Limited (MWPL), an under-construction 60MW windfarm project, developed by GAM, the acquisition remains subject to lender and regulatory approval. CDC and GAM are also co-investors in Zephyr Power Limited, an operating 50MW windfarm.
CDC’s capital will provide much-needed equity finance that will support the development of a clean energy platform that is bespoke to Pakistan’s needs, helping to scale power capacity in the country.
The deepened partnership will help accelerate greater investments into the renewable power sector in Pakistan. This partnership further underlines CDC’s focus on the renewable sector in Pakistan, where CDC has made over US $160 million in equity and debt investments, over the past five years.
Mike Nithavrianakis, British Deputy High Commissioner & Director for Trade Pakistan, commented: “CDC is an integral part of the UK’s footprint in Pakistan, and its new name, British International Investment, reflects its increased scope in creating economic opportunities and promoting productive, sustainable and inclusive development. The transition to clean, green energy is a key priority, and innovative projects like Metro-BII Renewables will contribute significantly towards reducing emissions. I am delighted that CDC and Gul Ahmed Metro Group are entering into this partnership and combining their expertise to promote renewables in Pakistan.”
Srini Nagarajan, Managing Director, Head of Asia, at CDC Group, commented: “Our ambitious new partnership with Gul Ahmed Metro Group demonstrates CDC’s keen focus on making sustainable investments, particularly in green infrastructure, that will help to mitigate the effect of climate change. CDC and Gul Ahmed Metro are united in a shared vision to devote our joint expertise and capital toward enhancing inclusive and productive opportunities for people and accelerating clean economic growth in Pakistan, over the long term. I am thrilled that through Metro-BII Renewables, CDC and the British Government can play a role in helping to scale clean affordable power provision in Pakistan that will meet the country’s needs and transform the livelihoods for people across the country.”
Danish Iqbal, Chairman, Gul Ahmed Metro Group, commented: “It is with great pleasure that we announce our new partnership with CDC Group. CDC is aligned with our vision to lead the winds of change in Pakistan’s transformation to achieve green energy future by 2030. The GAM Group harnesses renewable energy while maintaining the highest standards of quality, safety & environmental sustainability with an unwavering commitment to our stakeholders. We hope to deepen our collaboration with foreign partners for multilateral investments in the renewable energy sector as this will help in facilitating more business activity and foreign exchange in Pakistan.”
The Metro-BII Renewables joint venture will contribute toward the UN Sustainable Development Goals (SDGs) 13, 8 and 7 by helping to reduce greenhouse gas emission, improving living standards for end customers through the provision of affordable and reliable energy services, which will in turn increase economic opportunities.