ISLAMABAD: Norway ambassador to Pakistan has lodged a complaint with the Ministry of Foreign Affairs regarding purported discrimination against a Norwegian company which intends to set up a solar power plant.
The Ambassador has forwarded a letter of Norwegian Scatec ASA Country Manager Ijaz Anwar to the Prime Minister, highlighting difficulties being faced by the company in the operationalization of MoU on financial closure with Nizam Energy.
According to a letter of Additional Secretary Europe, the MoU was signed in February 2021, after hectic efforts, spreading over many years. As per the letter, the Government of Sindh failed to honour its commitment contrary to the understanding reached in the Lease Agreement signed on September 25, 2017 with, Scatec. The MoU envisaged setting up of three solar units of 50 MW each by Scatec which will bring around US$ 100 million investments into Pakistan.
The letter says that in case the project is implemented, Scatec would be the second largest Norwegian investment in Pakistan, after Telenor. The delay in implementation of the project will not only discourage Scatec but other Norwegian and foreign investors.
The matter was also brought to the attention of the President by the Norwegian Ambassador during the presentation of his credentials.
Scatec ASA and Nizam Energy have since 2014 jointly developed 150 MW (3x 50 MW) solar projects in Sukkur, Sindh. After a lengthy development of six years, the projects reached financial close. FMO, the Dutch development bank, Faysal Bank of Punjab and Pak Kuwait Investment have signed credit agreements for non-recourse debt financing of the projects.
The company will ensure implementation and provide operation and maintenance as well as asset management services to the projects.
It will have 75 per cent equity, with Nizam Energy holding the remaining 25 per cent in the three project companies, namely, Hellos Power (private) limited, HNDS Energy (private) Limited and Meridian Energy (private) Limited, collectively called the “projects”.
Copyright Business Recorder, 2021
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