ISLAMABAD: The envoys of Denmark, Canada and the Netherlands have jointly approached Minister for Power, Khurram Dastgir Khan for debt restructuring of two wind IPPs established in Sindh.
The letter signed by all three envoys says that Canada, the Netherlands and Denmark share an ardent ambition with Pakistan to increase bilateral commercial ties to benefit the participating nations, adding that a few sectors stand out when it comes to their potential in doing so and renewable energy sector is one of them. “As you may be aware, the Development Financial Institutions (DFIs) in their countries actively support the development of renewable energy projects in emerging markets like Pakistan,” the letter states.
Against this background, the envoys drew attention of Minister for Power to the case of two Wind Power Independent Power Producers (IPPs) based in Sindh, i.e., Jhimpir Power Limited and Hawa Energy, fully owned subsidiaries of JCM Power, co-financed by the DFIs of Canada, the Netherlands and Denmark.
According to the envoys, Wendy Gilmour, Canadian High Commissioner, Wouter Plomp, The Netherlands ambassador and Lis Rosenholm, Denmark ambassador, in response to the efforts of the Government of Pakistan (GoP) to reduce the cost of power generation, the two IPPs have developed a debt restructuring proposal together with their common foreign lender and equity partners.
“The IPPs seek to present the debt restructuring proposal before the relevant department within the GoP. This opportunity will allow for other foreign investors to critically observe how Pakistan engages with entities supported by foreign DFIs’ to honour the obligations of foreign investment agreements and GoP’s renewable energy policy,” the letter further noted.
The envoys have also shared a reference letter detailing the case specifics shared earlier by JCM Power with the relevant national authorities on the same subject in 2020.
The envoys have sought time from the Minister to discuss the issue in details for its resolution collaboratively.
Copyright Business Recorder, 2022