The Project is being developed by Zorlu Enerji Pakistan Limited (Zorlu Pakistan, or the Company), a special purpose company incorporated in Karachi, under the laws of Pakistan. The Company is almost wholly-owned by Zorlu Enerji Elektrik Üretim A.S (Zorlu Enerji or the Sponsor). Zorlu Enerji is one of the main players in the Turkish power market. In Turkey, it currently owns and operates five natural gas-fired power plants with total installed capacity of 460 MW and Rotor Elektrik, a 135 MW wind farm (an IFC financed project, # 27191). Outside of Turkey, besides Pakistan, the Sponsor is also developing power projects in Israel and Russia. Zorlu Enerji is listed on the Istanbul Stock Exchange, under the ticker ZOREN. The Zorlu Group, mainly through Zorlu Holding A.S., currently owns 84.9% of the Sponsor. The Zorlu Group is a leading Turkish business group with interests in a wide range of sectors, including energy, textile, electronics and real estate.

The total Project cost is estimated at $158.6 million. The proposed IFC investment consists of an A loan of up to $38.1 million to the Company for IFC’s own account.

38.10 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	38.10
Equity

* These investment figures are indicative

The Project is located in Jhimpir, Thatta district, Sindh province, Pakistan. The Project area is rural, uninhabited and is accessible by well established public roads and railway. Phase I of the Project has already been installed on the Project site.

The Project's development impact is expected to include: (i) contribute to alleviating the significant power shortage situation in Pakistan; (ii) support the development of the country's large wind resource base for power generation; (iii) help reduce the country's increased reliance on imported fuel for power generation; (iv) support continued private sector participation in the country's power sector; and (v) contribute to avoiding greenhouse gas emissions.

IFC's role and additionality in this Project will include: (i) provision of long-term financing to support the Company's financing needs; (ii) demonstration impact as one of the first commercial wind power projects in Pakistan, which is expected to help increase private sector interest in the nascent wind power sector in Pakistan; (iii) promoting South-South investment with a Turkish power developer investing in Pakistan; and (iv) ensuring the implementation of adequate environmental and social standards in line with World Bank Group standards.

The proposed investment in the Project is a Category B project because of a limited number of specific environmental and social impacts may result, which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The Project is located in a remote rural arid and rocky area and its access needed for the construction of the Project is possible through well established public roads and railway. The distance to the closest residential receptors is about 3km, and environmental impacts typical to wind power generations (e.g. noise, shadow flickering) on affected communities are expected to be minimal. The land will be sub-leased from the Alternative Energy Development Board, Government of Pakistan and no economic or physical relocation of people is needed. There is a protected natural lake about 7.8 km from the Project site. The Company is working with local environmental NGO (WWF-Pakistan) to conduct migratory bird monitoring programs. The Company will manage its environmental and social performance in accordance with applicable local laws and regulations and international standards, including IFC’s Performance Standards. The Asian Development Bank, a co-financier to the Project, categorized the Project as B (Environment), C (Involuntary resettlement), and C (Indigenous peoples). IFC’s category is consistent with ADB’s category.