AIRLINK 64.40 Decreased By ▼ -0.19 (-0.29%)
BOP 5.68 Increased By ▲ 0.08 (1.43%)
CNERGY 4.77 Increased By ▲ 0.05 (1.06%)
DFML 21.78 Increased By ▲ 1.02 (4.91%)
DGKC 71.80 Increased By ▲ 0.40 (0.56%)
FCCL 20.00 Increased By ▲ 0.05 (0.25%)
FFBL 30.35 Decreased By ▼ -0.10 (-0.33%)
FFL 10.15 Increased By ▲ 0.10 (1%)
GGL 10.02 Decreased By ▼ -0.03 (-0.3%)
HBL 111.35 Increased By ▲ 0.35 (0.32%)
HUBC 130.78 Decreased By ▼ -0.06 (-0.05%)
KEL 4.45 Increased By ▲ 0.06 (1.37%)
KOSM 4.32 Decreased By ▼ -0.02 (-0.46%)
MLCF 37.75 No Change ▼ 0.00 (0%)
OGDC 133.94 Increased By ▲ 0.09 (0.07%)
PAEL 22.65 Increased By ▲ 0.08 (0.35%)
PIAA 27.30 Decreased By ▼ -0.25 (-0.91%)
PIBTL 6.40 Increased By ▲ 0.09 (1.43%)
PPL 115.06 Increased By ▲ 0.11 (0.1%)
PRL 27.36 Increased By ▲ 0.14 (0.51%)
PTC 16.70 Increased By ▲ 0.20 (1.21%)
SEARL 61.00 Increased By ▲ 0.30 (0.49%)
SNGP 65.70 Increased By ▲ 0.55 (0.84%)
SSGC 11.21 Decreased By ▼ -0.14 (-1.23%)
TELE 9.05 Increased By ▲ 0.08 (0.89%)
TPLP 11.30 Increased By ▲ 0.05 (0.44%)
TRG 69.65 Increased By ▲ 0.60 (0.87%)
UNITY 23.45 Increased By ▲ 0.01 (0.04%)
WTL 1.41 Increased By ▲ 0.02 (1.44%)
BR100 7,360 Increased By 35.7 (0.49%)
BR30 24,140 Increased By 82.2 (0.34%)
KSE100 70,750 Increased By 205 (0.29%)
KSE30 23,257 Increased By 65.6 (0.28%)

ISLAMABAD: The Ministry of Foreign Affairs (MoFA) has requested Power Division to extend all possible facilitation to Norwegian power firm for completion of its solar project in Sindh, sources told Business Recorder.

Minister of State (MoS) for Foreign Affairs Hina Rabbani Khar met CEO of Scatec solar during her recent visit to Oslo on June 5-6, 2023. During the meeting, CEO Scatec conveyed that the company needs certain exemptions/extensions for successful completion of the project.

CEO Scatec had earlier sent a similar letter addressed to Chief Minister Sindh. Scatec solar is the second major investment from Norway to Pakistan and would contribute to meeting our energy needs. Moreover, to give a positive signal to other foreign investments from Norway, it is critical that the project commences smoothly.

600MWp solar project: AEDB holds Nepra responsible for lack of interest among investors

The MoFA has requested Power Division that Scatec’s operations may be extended all possible facilitation, including security support.

The Norwegian power firm, in its letter to MoS Foreign Affairs said that Scatec ASA and Nizam Energy have since 2014 jointly developed 150 MW (3 x 50MW) solar power projects in Sukkur. Scatec ASA is a leading renewable power producer, delivering affordable and clean energy worldwide.

Scatec is based in Oslo, Norway and listed on the Oslo Stock Exchange. Scatec will hold 75% of the equity, with Nizam Energy holding the remaining 25% in the projects Helios Power Limited, HNDS Energy Limited and Meridian Energy Limited-collectively called the “projects”. FMO- the Dutch Development Bank, Faysal Bank, Bank of Punjab and PAK Kuwait Investment have signed credit agreements for the non-recourse debt financing of the projects.

The banks have so far not been willing to disburse any money under these credit agreements due to the uncertain situation surrounding the project and the construction of the project is solely so far funded by Scatec equity.

The projects are close to completion, despite all the challenges the sponsors have faced including land demarcation, flooding and community issues, and foreign exchange and import restrictions.

M/s Scatec maintains that it is facing considerable challenges which need support from MoFA. There are few exemptions that are required from Government of Sindh which include permission of Government of Sindh to connect plant to earth under Electricity Act, exemption by Government of Sindh of application of Section 30 of Electricity Act and certificate of stability by Government of Sindh under Factories Act, certificate of registration by Government of Sindh under Factories Act.

The project has faced another force majeure event in the shape of severe windstorm, which has caused damage to the equipment. Scatec is procuring the new equipment mainly from suppliers in China, which will take time and will unfortunately cause further delay in the completion of the project.

The company has sought support from different entities of Government of Pakistan in this regard including permission to import new equipment by State Bank of Pakistan etc.

Scatec’s Asset Ownership/Investment Manager approached the Embassy stating that the windstorm in the solar plant area in Pakistan on April 18 2023 had incurred a damage of around $ 4-5 million.

The company has directly sent a formal request to the Pakistani authorities for grant of further extension up to 4-6 weeks. In addition, due to damage the company wants to import equipment to Pakistan, which will dock likely in August this year.

Copyright Business Recorder, 2023

Comments

Comments are closed.

Mohammad Anwar Jun 25, 2023 12:53pm
Ministry of power division and finance ministery as well as state bank should remove all hurdles in solarization of Pakistan.
thumb_up Recommended (0)