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

Discussion in 'Pakistan' started by farhan_9909, Dec 20, 2012.

  1. farhan_9909

    farhan_9909 Tihar Jail Banned

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    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.

    [​IMG]

    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
     
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  3. sob

    sob Moderator Moderator

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    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
     
  4. farhan_9909

    farhan_9909 Tihar Jail Banned

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    no idea about this.
     
  5. Blackwater

    Blackwater Veteran Member Veteran Member

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    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
     
  6. Agnostic Muslim

    Agnostic Muslim Regular Member

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    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:
    And now the civilian run PSEs:

    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.
     
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  7. datguy79

    datguy79 Regular Member

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

    Blackwater Veteran Member Veteran Member

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

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