Wind Power Generation Project Starts with $375 Million

Islamabad: Today, the governments of the United States and Pakistan, together with American power company AES Corporation, agreed to create a public-public partnership to develop a 150-megawatt, $375 million (Rs. 32 billion) wind power generation project in the Gharo Corridor of Pakistan.

The project will produce 150 megawatts of new, “clean” power serving some 600,000 homes and reduce Pakistan’s dependence on imported fuel, saving Pakistani citizens $45 million (Rs. 3.8 billion) per year.

“This project represents a meaningful, environmentally sound step toward addressing Pakistan’s energy crisis,” said Ambassador Richard Ambassador C. Holbrooke, U.S. Special Representative for Afghanistan and Pakistan. “Partnership with the private sector will also demonstrate the potential of investing in the power sector in Pakistan.”

This agreement is a concrete outcome of the U.S.-Pakistan Strategic Dialogue. The energy working group of the Strategic Dialogue was created to respond to Pakistan’s needs in this sector, which is critical to Pakistan’s economic and social development.

The partnership features investments from the Government of Pakistan and AES, which will leverage a loan from OPIC to develop three wind power generation sites. The Pakistani Ministry of Water and Power will own a minority stake in the project through a grant from the United States Agency for International Development (USAID). The Pakistani government’s shares will be privatized over time, and proceeds from the privatization will finance future energy projects.

Other energy sector outcomes of the Strategic Dialogue include USAID programs to rehabilitate 3 thermal power plants (Jamshoro, Muzaffargarh and Guddu) and the Tarbela Dam power station, complete the Gomal Zam and Satpara dams, improve the efficiency of tubewell pumps, support electricity distribution companies and promote efficient energy use.

Today’s agreement was signed by USAID Pakistan Mission Director Andrew Sisson, Pakistan Ministry of Water and Power Secretary Javed Iqbal, AES Country Director Iqbal Sheikh, and Ambassador Holbrooke on behalf of the U.S. Overseas Private Investment Corporation (OPIC). U.S. Ambassador to Pakistan Cameron Munter and Arif Alauddin, Chairman of the Alternative Energy Development Board, also participated.