Zorlu Sindh Wind Farm

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Zorlu Enerji Electrik (Zorlu Enerji) was planning the development of the 56.4 MW wind farm in Jhampir, Sindh Province. Zorlu Enerji was listed on the Istanbul Stock Exchange. The company was a subsidiary of Zorlu Holding AS (68%) (IST:ZOREN). The project was an expansion of a current wind farm of 6MW. The total expansion was 50.4MW. The project was to supply its output to the national grid under a 20 year PPA (take-or-pay), signed in December 2011. The tariff was approved by the National Electric Power Regulatory Authority and set at $0.121057 per kWh, and agreed to drop over time as debt is repaid. The output of the original 6MW was sold to Hyderabad Electric Supply Company. Annual production was estimated at 159 GWh. Commissioning was expected for 2012. The project held a generation license to expand up to 300MW. The equipment supply contract was awarded to Vestas Wind Systems A/S (CPH:VWS) in January 2012, to deliver 28 turbies of the type V90-1.8MW, including 2 years service and availability agreement. Financial closure was reached in May 2012. Financing was provided by the ADB ($36.4 million), first announced in December 2010 and confirmed in February 2011. Total project cost was $147 million, under a 70/30 debt to equity arrangement. The equity was arranged by Zorlu Enerji, the US dollar denominated debt was arranged through the ADB, the IFC and the ECO Trade and Development Bank, a Pakinstani Rupee-denominated debt was arranged through Habib Bank Ltd. (KAR:HBL). IFC contributed $38.1 million. ECO Trade and Development contributed $20 million, and Habib bank provided $16.2 million The loan had a maturity of 12 years and a grace period of 2 years. The deal was eventually closed in October 2011 at a total of $111 million. Total project cost grew from $147 million reported earlier to $158.7 million. ADPREN, Zorlu closes financing for 56.4MW Pakistan wind farm, 29 May 2012 Source: ADP Renewable Energy Track: Zorlu Enerji to Borrow USD 36.8 Million for Pakistani Wind Farm (4 February 2011). Source: ADP Debt News: Zorlu Enerji agrees USD 111m loan for 56.4 MW Pakistani wind farm (27 October 2011) Source: Renewable Energy Report: Zorlu Makes Final Credit Deals for Pakinstan's First Wind Farm (14 November 2011) Source: ADPREN: Turkish Zorlu Enerji Signs 56.4MW PPA for Pakistani Wind Farm (22 December 2011). Source: ADP Renewable Energy Track: Vestas Lands 50.4MW wind turbine order in Pakistan from Zorlu Enerji (2 January 2012).