CDC Group, the UK’s publicly owned impact investor, has signed an US$82 million debt deal in a wind power project in Pakistan that will materially reduce the country’s dependence on fossil fuels.
The deal will fund 150MW of wind farms located in the Jhimpir area of the Sindh province of Pakistan. The project involves three separate schemes of 50MW each – two developed by Liberty Mills and one by Indus Group.
The projects are part of a programme of 12 wind projects across Pakistan totalling 610 MW, increasing the renewable energy generation capacity of Pakistan by 50 per cent and providing clean, affordable power to the country at an average tariff of US$4.5c/kWh, in comparison to the existing average wind project tariff of US$11.0c/kWh.
The projects will avoid the equivalent to the average annual emissions of 130,000 people or 0.06 per cent of total of Pakistan’s annual domestic greenhouse gas emissions. In addition, they will add US$19.1 million to the country’s GDP, support the creation of 6,260 indirect jobs and reduce coal and fossil fuel imports by 0.3 per cent (or US$32.2 million), helping to relieve pressure on foreign exchange reserves.
The US$82 million commitment will contribute to three of the UN’s Sustainable Development Goals: Affordable and Clean Energy (7); Decent Work and Economic Growth (8); and Climate Action (13).
The deal announced today takes CDC’s total commitment to the wind power industry in Pakistan to US$144 million.
CDC undertook the role of Mandated Lead Arranger for the US$ debt of the projects.
Iain Macaulay, Director, Head of Project Finance, at CDC, said:
“I am delighted that CDC can play such a pivotal role in the development of renewable energy in Pakistan – bringing 150 MW of reliable and clean energy to Jhimpir region. “
“The latest projects build on the experience and expertise gained from the joint debt and equity investment in the Zephyr wind farm in 2017 and are complimented through the local presence CDC has had in Pakistan for the last 12 months.”
Azam Sakrani, Chief Executive Officer, Liberty Wind Power, said: “The wind projects are vital for the economy of Pakistan by generating clean energy at a low price, creating thousands of jobs and supporting the country’s economic growth. This is a new beginning for both Liberty group and CDC which will open doors for further collaboration.”
Indus Chief Executive Officer, Mian Shahzad Ahmed, said: “With CDC’s support, we are now ideally placed to continue to grow Pakistan’s renewable energy industry as we strive to move to a low carbon future.”
ENDS
Media Contact:
Andrew Murray-Watson, CDC Group
- +44 20 7036 4353
- amurray-watson@bii.co.uk
About CDC:
CDC Group is the UK’s first impact investor with over 70 years of experience of successfully supporting the sustainable, long-term growth of businesses in South Asia and Africa.
CDC is a leading player in the fight against climate change and a UK champion of the UN’s Sustainable Development Goals – the global blueprint to achieve a better and more sustainable future for us all.
The company has investments in over 1,200 businesses in emerging economies and a total portfolio value of £5.8bn. This year CDC will invest over $1.5bn in companies in Africa and Asia with a focus on fighting climate change, empowering women and creating new jobs and opportunities for millions of people.
CDC is funded by the UK government and all proceeds from its investments are reinvested to improve the lives of millions of people in Africa and South Asia.
CDC’s expertise makes it the perfect partner for private investors looking to devote capital to making a measurable environmental and social impact in countries most in need of investment.
