May 22 (Bloomberg) -- The Islamic Development Bank and the Asian Development Bank agreed to a $133 million financing plan to develop two wind projects in Pakistan as the nation seeks new renewable sources to overcome power shortages.
Pakistan’s Fauji Foundation, set up as a charitable trust for former servicemen, and the nation’s Tapal Group are backing the projects totaling 100 megawatts, according to a statement on the Islamic Development Bank website.
Pakistani Prime Minister Yousuf Raza Gilani said March 6 the nation has “enormous potential” for wind farms, solar power, geothermal and biofuel energy. Pakistan needs to diversify power sources away from oil and gas to overcome blackouts that beset the country restricting its growth and triggering protests in some cities this month. The gap between power demand and supply surged to a record 7,500 megawatts on May 10, the Geo television channel reported.
National Bank of Pakistan, Faysal Bank Ltd., United Bank Ltd., Allied Bank Ltd. and Meezan Bank Ltd. also participated in the long-term lease financing for the parks in Sindh province, southeastern Pakistan, according to the statement. The finance is an Ijara facility, an Islamic finance structure, according to the statement.
Pakistan received private sector offers to build 1,500 megawatts of renewable power, according the country’s Alternative Energy Development Board. A 150-megawatt project in Jhampir in Sindh is already under construction and about 400 megawatts of projects will start this year, according to the government agency website. The nation has about 900 megawatts of wind under construction or with financing agreed upon and 6 megawatts operating, according to Bloomberg New Energy Finance, the London-based industry analyst.
To contact the reporter responsible for this story: Sally Bakewell in London at Sbakewell1@bloomberg.net
To contact the editor responsible for this story: Reed Landberg at firstname.lastname@example.org