Burj Clean Energy Modaraba (BCEM) and Power Cement Limited (PCL) have signed Pakistan’s first-ever green captive power transaction, a landmark Rs1.5 billion project, which will establish a 7.5MW wind captive power plant.
The initiative is led by The Bank of Punjab with support from the National Bank of Pakistan and Pak Kuwait Investment Company, read BCEM filing provided to the Pakistan Stock Exchange (PSX) on Monday.
“BCEM singed Rs1.5 billion project finance facility of Pakistan’s first green captive power transaction with Power Cement Limited operating under lease arrangement,” read the statement.
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It added that the project “represents a landmark step in the country’s transition to sustainable energy,” backed by a consortium led by The Bank of Punjab (BOP), with participation from the National Bank of Pakistan and Pak Kuwait Investment Company.
As per BCEM, The Bank of Punjab played a central role in the transaction, acting as lead bank, adviser, arranger, inter-creditor agent, and spearheading the structuring of the financing framework.
NBP, which will act as security agent for the transaction, also played a key role in arranging financing in joint role of mandated lead advisor and arranger along with The Bank of Punjab.
“Whereas, Pak Kuwait Investment Company participated as a Musharaka participant, building on their earlier support to BCEM’s solar project, and also served as an equity provider to the BCEM fund,” read the notice.
“This collaboration reflects strong institutional support for Pakistan’s industrial decarbonization journey. This pioneering initiative underscores Power Cement’s vision to decarbonise its operations and improve energy efficiency while also reflecting BCEM’s role as Pakistan’s first clean energy investment fund/modaraba, uniquely positioned to deliver scalable, Shariah-compliant solutions for industrial clean energy needs.”
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As per the details, Orient Energy Systems has been appointed to deliver this project with Goldwind wind turbines.
“This initiative will enable Power Cement to generate cleaner, reliable electricity on-site, decreasing reliance on fossil fuels and contributing to Pakistan’s broader clean energy goals. At the same time, BCEM will set a precedent for private-sector clean energy partnerships in Pakistan by demonstrating how innovative financing and project development can accelerate industrial decarbonization,” read the notice.
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