PROJECT

Projects

Environmental & Social Review Summary

Project Number

35088

Company Name

GUL AHMED WIND POWER LIMITED

Date ESRS Disclosed

Nov 12, 2014

Country

Pakistan

Region

Middle East

Last Updated Date

Jul 28, 2017

Environmental Category

B - Limited

Status

Active

Previous Events

Approved : Jan 16, 2015
Signed : Jan 19, 2015
Invested : Jul 13, 2015

Sector

Wind Power - Renewable Energy Generation

Industry

Infrastructure

Department

Regional Industry INF MCT

Project Description

IFC is considering to invest up to US$15.0 million through a combination of A Loan (US$11.7 million) and equity (US$ 3.3 million) to Gul Ahmed Wind Power Limited, which is is a special purpose vehicle set up to develop a 50MW wind power generation plant located in the Jhimpir Wind Corridor, Thatta District of Sindh Province in Pakistan (the “Project”). The total project cost is estimated up to US$ 132 million. The Project involves engineering, design, procurement, construction, turbine erection, grid tie-in, commissioning and operation and maintenance of the 50 MW wind power plant. The Project will be an independent power producer and will sell electricity to the National Transmission and Dispatch Company Limited (“NTDC”) under a 20-year Energy Purchase Agreement (“EPA”). NTDC’s payment obligations under the EPA will be guaranteed by the Government of Pakistan. The Project is expected to generate an annual average of 154 GWh of electricity (on a P50 basis as per independent engineer’s estimates).

Incorporated in Pakistan, GAWPL is owned by Gul Ahmed Energy Limited (“GAEL”, 51%) and InfraCo Asia (49%). GAEL has developed a 136 MW RFO power plant in Pakistan, which has been in operation for the last 17 years. GAEL is mainly owned by Gul Ahmed Group – a leading diversified Pakistani family business group whose main business interest is in the textiles industry but which identified renewable energy as part of its growth strategy in the power sector. InfraCo Asia Indus Wind Pte Limited is a 100% owned subsidiary of Infraco Asia Development Private Limited (InfraCo Asia) –which is a donor funded infrastructure development company headquartered in Singapore. InfraCo Asia is financed by the multilateral development organization Private Infrastructure Development Group established to finance and support private investment in infrastructure, members of which include European development agencies and the World Bank Group including IFC. The Sponsors are well known to IFC through prior investment in GAEL (# 4998), committed in 1995 and in Metro Power – a 50 MW wind project (# 33496), committed in 2014.

The project site is located in the south of Pakistan between Karachi and Hyderabad, about 100 km inland from the coast, and is within Jhimpir Wind Corridor where good wind resources have been identified and the Alternative Energy Development Board of Pakistan (“AEDB”) is promoting multiple wind farm projects. AEDB released the land from the Government of Sindh and is sub-leasing to 11 independent power producers (50 MW each). GAWPL leased 647 acres (about 262 ha) of land (about 11 km in length and 0.2 km in width) from AEDB for the Project. The project site is mostly arid stony wasteland with rocks, sand and gravel. No settlement exists within the project site.

The Project will use 20 wind turbine generators (WTGs), Nordex N100 2.5 MW HCV (2.5 MW each, 99.8 m rotor diameter, 80 m hub height) manufactured by a German company called Nordex. An individual WTG will require about 2.5 acres of land. For 20 WTGs, the land use is thus likely to be about 50 acres out of the total 647 acres of land leased to the Company. The site will be provided with 11 km of internal roads to service the WTGs and a10-11 km dirt approach road from the existing highway. The approach road is fully constructed for two existing wind farm projects and one under construction wind farm project. The Project will be designed and constructed by Engineering, Procurement and Construction (“EPC”) contractors (Nordex and Descon). The Project will include an operation and control building and a 132 kV substation, which will be built within the project site. A 22 kV collection underground system will be installed to connect WTGs to the substation. The generated power will be transferred from the project’s substation to either the NTDC / Hyderabad Electric Supply Company 132 kV system or to a 220 kV substation to be built by NTDC. The connecting transmission line will be built and operated by NTDC. According to the Company’s initial examination, no major E&S risks are anticipated in relation to the NTDC transmission line. Actual construction of GAWPL project will start in the first quarter of 2015 and is estimated to start operation in the mid-2016.

The Company submitted CDM Project Design Document (estimated to achieve 93,783 ton CO2 equivalent per year reduction) and this was approved by Designated National Authority in August 2013.

Overview of IFC's Scope of Review

Appraisal of this project (a 50 MW wind farm project being developed by Gul Ahmed Wind Power Limited, “GAWPL” or the “Company”) was conducted by review of the Environmental and Social (E&S) documents, meetings with officers of Gul Ahmed Energy Limited and InfraCo Asia (collectively, the “Sponsors”) of the project, and the site visit as listed below.

E&S documents reviewed include: (i) 50 MW Wind Power Plant by Gul Ahmed Wind Power Limited: Jhimpir, Pakistan, Final Initial Environmental Examination Update, December 2013; (ii) Shadow Flicker Study Report of GAWPL, Sindh Province, Pakistan, Draft Report, August 2014; (iii) Stakeholder Engagement Plan, Gul Ahmed Wind Power Limited, August 13, 2014; (iv) Project Design Document Form for CDM Project Activities, Power Generation through Wind Energy at Gul Ahmed Wind Power Limited, December 21, 2012; and (v) Initial Environmental Examination (IEE), 50-MW Gul Ahmed Wind Power Limited, Jhimpir, District Thatta, April 20, 2009.

In addition to the above listed project E&S documents, the following Regional Environmental Assessment Study reports prepared under the UNDP/GEF Wind Energy Project were also used for review: (vi) Regional Environmental Assessment Study of the Gharo Wind Corridor in Pakistan, Environmental and Social-Economic Baseline Report, June 2008, (vii) the same, Section-2: Cumulative Impact Assessment & Alternatives, September 2008, (viii) the same, Section-3: Environmental Management Plan, September 2008, and (ix) Guidelines for Environmental Assessment of Wind Farms in the Gharo Wind Corridor – Pakistan, June 2009.

A site visit was conducted on July 14-16, 2014 to the GAWPL’s project site, its access road, and selected communities around the project site. During the site visit, meetings were held with the Sponsors’ officers in charge of project development and E&S management and with Tekcellent (an E&S consulting firm in Pakistan) that worked to update the initial E&S impact assessment with ERM (an international E&S consulting firm).

In addition, IFC used relevant information contained in the following two ESRSs of the projects that IFC disclosed since these projects are located in the same wind corridor and one of the projects is actually being developed by the same Sponsors as the GAWPL project. The two ESRSs are those for: Metro Power Company Limited (or “MPCL”, a 50 MW wind farm project in Sindh Province), disclosed August 22, 2013; and Zorlu Pakistan (a 56.4 MW wind farm project in Sindh Province), disclosed April 11, 2011.

IFC’s appraisal considered E&S management plans for the project and gaps if any between these plans and IFC requirements. Where necessary, corrective measures, intended to close these gaps within a reasonable period of time, are summarized in the paragraphs that follow and in the agreed Environmental and Social Action Plan (ESAP) disclosed in this review summary. Through implementation of these management plans and the ESAP, the Project is expected to be designed and operated in accordance with IFC Performance Standards objectives.

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Broad Community Support

Environmental & Social Action Plan

Client Documentation

File Name Actions
5. GAWPL IEE.pdf
4 GAWPL CDM PDD V1.3.pdf
3 GAWPL Stakeholder Engagement Plan.pdf
2 GAWPL Shadow Flicker Study Report.pdf
1 GAWPL Final IEE Update.pdf