Pakistan: Renewable Energy Development Sector Investment Program

The program is the first of its kind in Pakistan and also one of the first to be developed under ADB’s evolving clean energy and efficiency initiative, through which ADB is planning to expand energy efficiency operations in its developing member countries to $1 billion per year. The program will expand the country’s power supply, especially in rural areas, sufficient to serve about 600,000 new domestic connections of 4.8 million people. It will also improve reliability and quality of supply.
The first program under the facility will finance a set of small to medium hydropower plants prepared by Northwest Frontier Province and Punjab.

Date Implemented: 2006

Status: In Force; Government Initiative

Funding Information: multitranche financing facility of up to US$510 million. The facility will have a life of 10 years to 2017. Each loan under the facility would be at least $50 million and be used to partially finance renewable energy development projects. The governments of Northwest Frontier Province and Punjab expect to take out several loans under the facility to totals of $180 million and $150 million, respectively. Other provinces can request funding for renewable energy projects totaling $170 million. The bulk of the facility comes from Asian Development Bank’ s ordinary capital resources and will be subject to interest determined in accordance with ADB’s LIBOR-lending facility. Some $10 million of the facility comes from ADB’s concessional Asian Development Fund to support investments in developing institutions and capacity, as well as feasibility studies. Interest for this portion is charged at 1% per annum during the eight-year grace period and 1.5% per annum subsequently, and carries a term of 32 years.

References: http://www.adb.org/Media/Articles/2006/11118-Pakistan-renewable-energy-d...