Islamic, Asian Banks Agree to Funding for Pakistan Wind Power

May 22, 2012 by  
Filed under Green Energy News

The Islamic Development Bank and the
Asian Development Bank agreed to a $133 million financing plan
to develop two wind projects in Pakistan as the nation seeks new
renewable sources to overcome power shortages.

Pakistan’s Fauji Foundation, set up as a charitable trust
for former servicemen, and the nation’s Tapal Group are backing
the projects totaling 100 megawatts, according to a statement on
the Islamic Development Bank website.

Pakistani Prime Minister Yousuf Raza Gilani said March 6
the nation has “enormous potential” for wind farms, solar
power, geothermal and biofuel energy. Pakistan needs to
diversify power sources away from oil and gas to overcome
blackouts that beset the country restricting its growth and
triggering protests in some cities this month. The gap between
power demand and supply surged to a record 7,500 megawatts on
May 10, the Geo television channel reported.

National Bank of Pakistan, Faysal Bank Ltd., United Bank
Ltd., Allied Bank Ltd. (ABL) and Meezan Bank Ltd. also participated in
the long-term lease financing for the parks in Sindh province,
southeastern Pakistan, according to the statement. The finance
is an Ijara facility, an Islamic finance structure, according to
the statement.

Pakistan received private sector offers to build 1,500
megawatts of renewable power, according the country’s
Alternative Energy Development Board. A 150-megawatt project in
Jhampir in Sindh is already under construction and about 400
megawatts of projects will start this year, according to the
government agency website. The nation has about 900 megawatts of
wind under construction or with financing agreed upon and 6
megawatts operating, according to Bloomberg New Energy Finance,
the London-based industry analyst.

To contact the reporter responsible for this story:
Sally Bakewell in London at
Sbakewell1@bloomberg.net

To contact the editor responsible for this story:
Reed Landberg at
landberg@bloomberg.net

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