Sachal Energy Development (Pvt) Limited, a wholly owned subsidiary of Arif Habib Corporation Limited has announced that they have been sanctioned financing of US $107 million from Industrial and Commercial Bank of China (ICBC) World’s Largest Bank.
It may be mentioned here that Sachal Energy has signed a financing agreement with Industrial and Commercial Bank of China (ICBC) for Sachal Wind Power Plant. The agreement was signed by Kashif Mateen Ansari, Chief Executive Officer of Sachal Energy at a ceremony held earlier this year.
The ceremony was attended by Special Assistant to the Prime Minister on Foreign Affairs Syed Tariq Fatemi, Secretary Water and Power Mohammad Yunus Dagha, Pakistan’s Ambassador to China Masood Khalid, Head of Corporate Banking, ICBC Jiang Tao, Deputy Head, ICBC Zhang Wenchao, diplomats, leading Chinese businessmen and civil society members.
Sachal Energy is the first wind power project to achieve this milestone under Pak-China Economic Corridor projects.
Under the agreement, ICBC will provide up to $ 107 million for the construction of 49.5MW Sachal Wind Power Project in Jhimpir, Thatta.
ICBC is the largest bank in the world by total assets and is one of China’s `big four’ state-owned commercial banks.
Sachal Energy, a fully owned subsidiary of Arif Habib Corporation Limited, has already signed a power purchase agreement with National Electric Power Regulatory Authority in February 27, 2014. It has also signed an engineering, procurement and construction contract and operation & maintenance contract with Chinese company Hydro China Corporation Limited in April 28, 2012.
The construction of the project is expected to start in April this year and its commercial operation is expected to begin in 2016. The project will annually generate 136,500MWh of clean energy and reduce carbon dioxide emissions by approximately 85,000 tons.
This project will not only strengthen economic relationship between China and Pakistan but will also foster technical co-operation between the two friendly neighbours. Sachal Energy will commission and operate the wind farm on a “build, own and operate basis”.