Fauji Foundation sponsored Renewable Energy (Wind) Project kicks off

Fauji Founda-tion today, entered into an agreement for equity commitments of approximately PKR 6 billion (of which approx. USD 20 million is being provided as Foreign Direct Investment) by CapAsia Singapore through the Islamic Infrastructure Fund managed by them. Islamic Infrastructure Fund is primarily funded by Islamic Development Bank and Asian Development Bank.
The two wind farms of 50 MW each to be establishedare located in Gharo Sindh with total project cost estimated to be USD 260 million.These two Projects will be implemented through Special Purpose Vehicles, namely Foundation Wind Energy-I Limited (formerly Beacon Energy Limited) and Foundation Wind Energy-II (Pvt) Limited (formerly Green Power (Pvt) Limited). The Sponsors of these Projects are Fauji Foundation, Fauji Fertiliser Bin Qasim Ltd, Tapal Group and CapAsia, which is their first investment in Pakistan.
Project Debt Financing of USD 195 million is being finalised, for which National Bank of Pakistan (NBP) has been mandated to arrange the equivalent USD 70 million Rupees under Shariah compliant modes. The balance of funding of USD 125 million is to be financed by Multilateral Development Banks for which the Sponsors are in discussions with Asian Development Bank and Islamic Development Bank. Financial Closure of both Projects is expected in early September 2011. Financial and Legal advisors to these two projects are Bridge Factor and Orr, Dignam & Co and lenders local legal counsel are Haidermota & Co.
Pakistan has huge potential for wind energy more then 20,000 MW capacity can be harnessed in the wind corridor at Gharo and Jhimpir, Sindh. Accordingly, Fauji Foundation has targeted establishing four projects in Sindh, one of which, FFC Wind Energy is being implemented by Fauji Fertiliser Company. FFC Wind Energy has already achieved Financial Close and operations of this wind farm are expected to commence by June 2012. The entire transaction framework for all these projects is under the auspices of the Alternative Energy Development Board, which is spearheading the development of Renewable Energy projects in Pakistan.-PR