Incorporated in Pakistan, GAWPL is owned by Gul Ahmed Energy Limited (‘GAEL’, 51%) and InfraCo Asia (49%) (“Sponsors”). 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 is a part of the InfraCo Group - a donor funded infrastructure development company, financed by the Private Infrastructure Development Group, members of which include European development agencies and the World Bank Group including IFC. The Sponsors are well known to IFC through a prior investment in GAEL (# 4998), committed in 1995 and in Metro Power – a 50 MW wind project (# 33496), committed in 2014.

The total Project Cost is estimated up to US$132 million and is proposed to be funded with a debt to equity ratio of 75:25. 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) and to mobilize up to US$38 million of the Project costs. The balance debt would be arranged by a consortium of local Pakistani commercial banks.

15.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	11.70
Equity	3.30

* These investment figures are indicative

The Project is located over an area of 2.62km2 (already acquired via lease) in the Jhimpir Wind Corridor, Thatta district of Sindh province in south-eastern Pakistan, about 100 km east of Karachi.

1. Add energy generation capacity on the short term when Pakistan is facing severe power shortfalls: The Project is expected to generate 154GWh of energy (P50 case) providing additional power supply to approximately 186,000 customers annually and help address the significant supply deficit which generates regular blackouts in Pakistan. In addition, the Project is undertaken under the Upfront Tariff that has been determined in April 2014 and under which 580 MW of wind power projects have to achieve financial close by March 2015. IFC''s investment in the Project supports a newly issued tariff with the aim of bringing into operation 580 MW by the end of 2016.
2. Support the development of Pakistan''s renewable energy sector: The Project will promote the use of renewable energy sources for power generation in Pakistan. As of today, wind power represents less than 1% of total generation capacity.
3. Contribute to the diversification of Pakistan existing generation mix: Pakistan current energy mix is highly skewed towards thermal and fossil fuel based power generation sources (65% of the thermal sources consist of furnace oil and natural gas). The rapid depletion of indigenous gas resources and stalled development of large scale hydro or coal based generation capacity, have contributed to increase reliance on highly expensive imported oil which represents 37% of Pakistan generation mix as of today. The Project is not among the lowest sources of energy but as long as supply will lag behind demand, wind tariff will always be more competitive than highly expensive fuel oil based generation; ii) over the long run, as debt is being repaid, the tariff is one of the lowest cost generation sources of power in Pakistan; iii) from a portfolio perspective, wind power ensures long term stability of prices (no volatility related to fuel) and energy security of the country (no exposure to foreign exchange), both positive externalities that are not captured in the wind tariff but contribute to the top energy priorities set by the government of Pakistan.
4. Contribute to reducing greenhouse gas emissions: The project is expected to generate carbon emission reduction (CERs) through the clean development mechanism of the Kyoto protocol: 68,065 (tCo2) per year is the expected GHG reduction.
5. Support a local investor in the power sector: The Project emphasizes a strategic partnership and helps develop local expertise to aid future development of renewable energy in Pakistan. This is the second renewable project developed by the sponsors.
6. Strong Impact on Private Sector Development and Economic Growth: Increasing access to power supply in Pakistan is critical to economic growth (estimated production losses of around 2-3% of GDP) by enabling power supply to the industrial sector and alleviating the pressure on government for subsidies and tariffs, which has been a driver for local currency depreciation.

1. Provision of Long Term Financing: Support local banks to provide sustainable long term financing (12 years) for the development of renewable energy projects, which is not available in the local market.
2. Resource mobilization: IFC is playing a key role by mobilizing up to US$36 million of long term financing from other development financial institutions to support the Project. IFC lead role in investing in the Project provides comfort for other DFIs to invest in the Project.
3. Long term partnership: IFC is uniquely positioned to support an existing strategic partner to continue its diversification in renewable energy.
4. Nonfinancial risk mitigation through stamp of approval: Introducing clients to other DFIs, financial institutions, and investors. IFC''s debt and equity investment will be a confidence to the sponsor and will send a strong signal to other investors demonstrating IFC''s support to resolving the energy crisis in an IDA country.
5. Global industry knowledge and standard setting: Bring IFC''s knowledge and experience in sustainable development of wind power in Pakistan. Help develop best practices and ensure compliances with environmental and social guidelines.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Organizational capacity and Management Programs(%)	Organizational capacity and Management Programs(%)		Not Available	Not Available	Not Available
Human Resources Policies and Procedures(%)	Human Resources Policies and Procedures(%)		Not Available	Not Available	Not Available
Direct Employment (#) - Operations and Maintenance	Employment (#)		Not Available	Not Available	Not Available
Female Direct Employment (#) - Operations and Maintenance	Female Employment (#)		Not Available	Not Available	Not Available
Temporary Employment (#)	Employment (#)		Not Available	Not Available	Not Available
Female Temporary Employment (#)	Female Employment (#)		Not Available	Not Available	Not Available

The proposed project is to develop a 50 MW wind farm plant in a semi-desert area and mostly barren land with sparse vegetation with limited potential adverse E&S risks and impacts that are few in number, generally site-specific, largely reversible, and readily addressed through mitigation measures, and therefore, it is a category B project. Key E&S risks and impacts include effectiveness of the mitigation measures for noise and shadow flicker, cumulative impacts of the project and other wind farm projects being developed in the same wind corridor, disturbance by migration of workers during construction phase, land use change of the area, and stakeholder engagement.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.