Sapphire Jhampir Wind Farm

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Sapphire Wind Power Company Pvt. Ltd. was planning the development of a 50MW Wind Farm, Jhampir, Sindh Province.The project sponsors were Sapphire Textile Mills Limited and Bank Alfalah Limited, both companies organized under the laws of Pakistan. The equipment supply contract was awarded to GE, from the USA. GE would supply turbines of the type GE 1.5-MW XLE, of 1.5MW each. In October 2011, the company was seeking government approval to construct the wind farm. No tariff had been set by the NEPRA, but Sapphire has requested a tariff in August 2011. The feasibility study had been submitted. The EPC contract was awarded to CMEC, from China. The O&M contract was signed with GE, for a period of 10 years. 1372 acres of land were assigned to the company by AEDB. Incentives for the project included: Attractive tariff (cost plus 17% ROE, inflation and exchange rate protected) No import duties on equipment Exemption on income tax/withholding tax and sales tax Permission to issue corporate registered bonds Project cost was estimated at US$ 127.7mn. Financing included a 12-year term loan of $95mn provided by OPIC approved in March 2013. The term loan had a grace period of 2 years and repayment schedule of 10 years.The project had already registered for carbon credits from UNFCC. http://www.sapphire.com.pk/Pdf/cstman_dir_report.pdf Source: Renewable Energy Report: Pakisatn agency issues proposal to create feed-in tariff for wind energy production (31 October 2011)