Scatec reaches financial close for its first project in Pakistan
Post date: 22/02/2021 - 12:36
The Norwegian solar project developer and power plant operator Scatec and its local pakistani partner Nizam Energy have closed financing for the 150 MW »Sukkur« solar power project with a total investment of about $100 million. FMO, the Dutch development bank, Faysal Bank, Bank of Punjab and PAK Kuwait Investment have signed credit agreements for the non-recourse debt financing of the Sukkur project. According to the company, the credit facilities cover up to 75 percent of the total project cost.
The »Sukkur« project portfolio located in the province Sindh, southeast in Pakistan, was awarded a »costs plus tariff« by the National Energy Power Regulatory Authority (NEPRA) early in 2020. Scatec and Nizam Energy are now working to start construction within the first half 2021. Scatec will provide engineering, procurement and construction (EPC), and provide Operation & Maintenance, as well as Asset Management Services to the power plants. Scatec will hold 75 percent of the equity, with Nizam Energy holding the remaining 25 percent.
The Government of Pakistan plans to increase the share of renewable energy to 30 percent by 2030.