PAK: ZORLU ENERJI POWER PROJECT

ADB has provided $33.92 million loan to Zorlu Enerji Pakistan Limited (ZEPL), a wholly owned subsidiary of Zorlu Enerji Elektrik retim (the sponsor), to build a landmark wind power project in Sindh Province and increase the country's renewable energy generation capacity. The project, a 56.4 MW wind power plant, was developed in two phases. Phase 1 (6 MW) was constructed through equity financing in 2009 and Phase 2 (50.4 MW) was constructed with a combination of equity and debt by ADB and other lenders. The power offtaker is Central Power Purchasing Agency (CPPA), under a 20-year take-or-pay Energy Purchase Agreement (EPA). The Government of Pakistan (GOP), acting through Alternate Energy Development Board (AEDB), guarantees CPPA''s obligations under the Implementation Agreement (IA) and bears the wind availability risk. The final project cost slightly increased from $147 million to $152.9 million (primarily on account of USD/Euro fluctuation and IDC). Other financiers included IFC, Eco Trade and Development Bank, and Habib Bank Limited. The Project is the first privately financed wind power project constructed under the Renewable Energy Policy 2006 in Pakistan.