IDB, ADB ink $133m accord for wind power projects in Sindh

KARACHI: Jeddah-based Islamic Development Bank (IDB) in partnership with Asian Development Bank (ADB) has signed a $133 million agreement for long-term lease finance (Ijara) facility for the development of two wind power projects in Sindh province. A consortium of financial institutions comprising National Bank of Pakistan, Faysal Bank, United Bank Limited, Allied Bank and Meezan Bank are also participating in the transaction. Under an innovative risk participation structure between IDB and ADB, the project companies were able to raise 100 percent Islamic financing for these important infrastructure projects. Fauji Foundation and Tapal Group in Pakistan are sponsoring the projects. Once complete, the projects shall add generation capacity of 100 mw to the national grid under long term Energy Purchase Agreement with National Transmission and Distribution Company of Pakistan and thereby make a significant contribution to improving power supply situation in the country. These projects are first generation wind energy projects that Pakistan has embarked on. “Pakistan has enormous potential to tap wind energy and successful implementation of these projects is expected to bring in further investment in developing more wind projects in Pakistan,” said Walid Abdel Wahab, Director IDB Infrastructure Department. IDB has been a long term development partner of Pakistan and has been involved in both public and private sector projects. Since its inception, IDB’s cumulative operations in Pakistan have reached to almost $7.5 billion. ppi

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