Accord signed: Fauji Foundation invests $251m in wind power

[farhan_9909]

ISLAMABAD: Subsidiaries of Fauji Foundation – Foundation Wind Energy-I Limited and Foundation Wind Energy-II Limited – are making an investment of $251 million in setting up two wind power projects of 50 megawatts each in Gharo, Sindh.

In this connection, the two companies and the government signed an implementation agreement here on Tuesday. The accord was inked by Brigadier (Retired) Dr Gulfam Alam, Project Director of the two projects and Arif Alauddin, Chief Executive Officer of Alternative Energy Development Board (AEDB), on behalf of the government.

Speaking on the occasion, Managing Director of the two companies, Lieutenant General (retd) Muhammad Mustafa Khan said the Asian Development Bank (ADB), Islamic Development Bank (IDB) and a syndicate of local banks were providing most of the finance for the wind farms.

Debt financing, which is 75% of the project cost, is Shariah-complaint and is the first of its kind in Pakistan. The remaining 25% of the cost is being financed via equity investment, arranged by the Fauji Foundation group, CapAsia Singapore and Tapal Group Karachi.

ADB and IDB will provide $124 million and the consortium of local banks will arrange $63 million.

Khan said he was targeting to enter into an energy purchase agreement for the two projects this month and achieve financial close immediately after that. Both projects are expected to start commercial production in the second quarter of 2014.

Fauji Fertiliser Company Wind Energy Limited (FFCEL) has already established a 50MW wind power plant, which would start operation this month.

AEDB CEO Arif Alauddin commented that the two wind projects of Fauji Foundation subsidiaries were trendsetters in many ways and opening doors to investment in the Gharo Keti Bandar wind corridor.

He said 45 wind power projects of around 3,200MW were under process, adding the Sindh government had leased around 26,000 acres of land to AEDB for 18 projects with a cumulative capacity of 906 megawatts, which were at different stages of development.

Of these, projects having combined capacity of 106MW are ready for commencement of operation and projects producing a further 100MW will achieve financial close shortly.

"Wind projects being installed by Fauji Foundation will cost less than Rs10 per unit," he said, adding wind and solar projects would have their impact on the energy mix and reduce circular debt.

Published in The Express Tribune, December 19th, 2012.

Accord signed: Fauji Foundation invests $251m in wind power – The Express Tribune

 

[sob]

Based on Rs. 10 per unit what is the expected payback for this project? How does this compare to the cost of Coal Based Power generation.

For most of the projects in India or even in Europe the norm is 7-8 years, that too if Carbon Credits are involved. Here

 

[farhan_9909]

Based on Rs. 10 per unit what is the expected payback for this project? How does this compare to the cost of Coal Based Power generation.

For most of the projects in India or even in Europe the norm is 7-8 years, that too if Carbon Credits are involved. Here

no idea about this.

 

[Blackwater]

Debt financing, which is 75% of the project cost, is Shariah-complaint and is the first of its kind in Pakistan. The remaining 25% of the cost is being financed via equity investment, arranged by the Fauji Foundation group, CapAsia Singapore and Tapal Group Karachi.

ADB and IDB will provide $124 million and the consortium of local banks will arrange $63 million.


i doubt. with fauji genenral as directer,i smell scam

 

[Agnostic Muslim]

i doubt. with fauji genenral as directer,i smell scam

There very well might be 'scams and corruption' in the organization (the people who staff it are fallible humans after all), but compare the performance of the Fauji Foundation with the large Civilian government run Public Sector Enterprises like PIA, Pakistan Steel, Pakistan Railways etc.

Fauji Foundation:

These beneficiaries now number approximately 9 million, i.e., over 5 % of Pakistan's population . Fauji Foundation extends services in the fields of health, education, technical & vocational training. This is achieved through 12 hospitals, 24 medical centers, 77 mobile & static dispensaries,1 Artificial Limb Centre, 1 Nursing School, 98 schools, 2 colleges, and 74 technical & vocational training centers .

In the year 2009-10, over 2.29 million patients received treatment from our health-care chain. Of these, almost half were those who were treated at our major hospitals, almost 51,000 being indoor cases . This makes it the most extensive health care chain in the private sector

The Fauji Education System has today almost 45,000 students on its roll. Our chain is the largest outside the public sector. In the current year approximately 55,000 student stipends are dispersed, about 5,500 of which are for higher professional programs and superior academic performance. In session 2009-10 the amount allocated was Rs. 132,416 million (approx.), this is the largest stipend scheme in the private sector. The system has around 11,000 trainees enrolled in technical and vocational for the current session. Since this program was established in the period 1976-81, around 210,000*people, have availed these facilities.

Fauji Foundation is thus extending social welfare services to a sizeable sector of the population. In this area, we spent over Rs. 4 billion in the year 2009-10, adding up to a total of over Rs. 31 billion, ever since our welfare operations began with a trickle in the mid –fifties. Hence approximately 72% of the annual earnings of the Foundation are channeled into welfare.
...

In FY 2009-10, the commercial operations of the Fauji Group, contributed almost Rs. 41.4 billion to the national exchequer in the form of duties, taxes & levies. The Group employs about 13000 personnel, approximately 60% of whom are from the civil sector, the other being from amongst the beneficiaries of the Foundation.

OurO rganization

And now the civilian run PSEs:

ISLAMABAD: Criminal corruption and incompetence in at least eight public sector enterprises (PSEs) have gobbled down approximately Rs1,500 billion in taxpayersí money in a mere 48-month time span, The News shockingly learnt Monday.

Moreover, the losses figure is expected to cross the Rs2,000 billion mark by the end of the year, according to reliable sources.The unprecedented spike in losses ñ an accumulated consequence of brazen corruption and gross incompetence ñ is being blamed on the present government's penchant for appointing lackeys and cronies to key posts in these public sector companies.

An official report on the financial losses and profits of at least eight PSEs available with The News including the power sector (Pepco), Pakistan Railways (PR), Pakistan International Airlines (PIA), Pakistan Steel Mills (PSM), Utility Stores Corporation (USC), Trading Corporation of Pakistan (TCP), Pakistan Agricultural Storage & Supplies Corporation (Passco) as well as the National Highway Authority (NHA), revealed that during the period 2007-08 to 2010-11, major losses incurred on account of power subsidies in all shapes amount to the tune of Rs1,100 billion.

Eight public sector enterprises gobbled down Rs1,500 billion - thenews.com.pk..

I am not by any means arguing in favor of military run government, and the Fauji Foundation may in fact succumb to corruption and mismanagement similar to that in the PSE's, down the road, but lets give credit where it is due, and recognize that for now the FF is a well run organization that provides billions in annual revenue to the government, and services to millions of beneficiaries that are otherwise not provided by the government.

 

[datguy79]

Is Sindh even that windy, especially in the summer? Might as well have invested the money in solar.

 

[Blackwater]

Is Sindh even that windy, especially in the summer? Might as well have invested the money in solar.

there is saying in urdu" jo kuch mil gaya usko mukaadar samaj liya"

it means" what ever they get is consider as their good destiny"