French Development Agency- Proparco invests USD 20 million to support wind energy in Pakistan
PROPARCO, the private sector arm of the French Development Agency, is investing USD 20 million to support a new wind farm in Sindh province, part of efforts to support renewable power generation and drive economic development across Pakistan.
PROPARCO’s investment in Gul Ahmed Wind Power, an independent power producer, will help the company build and operate the 50-megawatt facility northeast of Karachi.
The project is expected to bolster electricity supplies in Pakistan, where frequent power cuts hamper social and economic development, and cost the country the equivalent of 2 percent of gross domestic product. An approximate 130 GWh per year is expected to be added to the national grid.
The new plant will create jobs (more than 500 during the construction phase and 50 on a long term basis) and help spur growth. The plant will make its greatest contributions during the high-demand summer months, when wind farms generate most of their electricity. It will provide an environmentally-friendly source of power, helping Pakistan cut back on the use of polluting and expensive fossil fuels by reducing the carbon footprint of the country by an approximate 60,000 tons of CO2-equivalent per year.
Chief Executive Officer of PROPARCO, Claude Périou welcomed “this joint operation with the Infraco Asia, IFC and local Pakistani banks, which is fully in line with AFD Group’s strategy against climate change. This project will contribute not only to reducing pressure on the country’s power grid, but also to encouraging the development of strong, reliable and clean energy in the region. It is the third investment of PROPARCO in the energy sector in Pakistan.”
ABOUT PROPARCO is a Development Finance Institution jointly held by Agence Française de Développement (AFD) and public and private shareholders from the North and South. Its mission is to catalyze private investment in emerging and developing countries with the aim of supporting growth, sustainable development and the achievement of the Millennium Development Goals (MDGs). PROPARCO is one of the main bilateral development finance institutions in the world. It invests on four continents encompassing the major emerging countries and the poorest countries, particularly in Africa, and has a high level of requirements in terms of social and environmental responsibility. For more information, visit: www.proparco.fr