Karachi, Pakistan, April 14, 2014—IFC,
a member of the World Bank Group, is investing in a new 50 megawatt wind
farm, in Sindh province, north east of Karachi. The wind power project
will help meet a rising electricity demand in Pakistan and provide an extra
270,000 people with environmentally friendly power every year.
IFC’s debt and equity investment of
$25.8 million will help Metro Power Company Limited implement the project
and tackle a growing energy deficit in Pakistan. About a third of the demand
for electricity is unmet, which affects living standards and is causing
the economy to shrink by 2 percent of GDP per year.
"We are excited to be helping alleviate
Pakistan’s energy deficit by providing sustainable and affordable renewable
energy," said Danish Iqbal Alimohamed, Chief Executive Officer of
Metro Power. "Despite challenging market conditions in Pakistan’s
power sector, we are pleased with the support we have received from our
shareholders, lenders, and the government of Pakistan that enabled us to
reach this important milestone.”
The wind farm is expected to generate
approximately 140 gigawatt hours of electricity every year, and contribute
to a reduction in greenhouse gasses of nearly 100,000 tons of CO2.
That will reduce the power deficit and help meet climate change targets.
“Ensuring energy security in Pakistan
is vital to improve infrastructure, support the private sector, and create
growth,” said Mouayed Makhlouf, IFC Director for the Middle East and North
Africa. “What’s more, the development of renewable energy is a key feature
of IFC's strategy in Pakistan.”
Metro Power is owned by the Iqbal Alimohamed
Family and InfraCo Asia Keenjhar Wind Private Limited. These two sponsors
will contribute 22.5 percent of the project cost, building upon their extensive
experience in the power sector.
This investment is part of IFC’s wider
efforts in Pakistan that focus on mobilizing investments in infrastructure,
expanding access to finance to smaller businesses, and boosting job creation.
In fiscal year 2013 IFC committed $514 million in the country— including
mobilization from other investors and lenders.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. Working with private enterprises in more than 100 countries,
we use our capital, expertise, and influence to help eliminate extreme
poverty and promote shared prosperity. In FY13, our investments climbed
to an all-time high of nearly $25 billion, leveraging the power of the
private sector to create jobs and tackle the world’s most pressing development
challenges. For more information, visit www.ifc.org