[CPEC, IPP] ICBC pledges to provide a $66.34 million loan for 50 MW Wind Power Project

In 2017, the Industrial and Commercial Bank of China (ICBC) pledged a $66.34 million loan to Western Energy (Pvt.) Limited — a project company (special purpose vehicle) — for a 50 MW Wind Power Project in Jhimpir, Thatta District, Sindh Province. The total project cost is $88.455 million and it is being financed with 75% debt and 25% equity. Apart from ICBC’s 2017 loan pledge, China Eximbank provided an indicative lending term sheet to Western Energy (Pvt.) Limited for this project in 2015. The project will be executed by Western Energy (Pvt.) Ltd., a special purpose vehicle and joint venture between Pakistan-based Tapal Group and China Shipbuilding Industry Corporation. Shanghai Marine Diesel Engine Research Institute is the offshore EPC contractor and Sino Qiyao International (Pmts) Limited is the onshore EPC contractor. The 50MW Wind Power Project will rely on wind turbine for power generation. The project is listed as a China Pakistan Economic Corridor (CPEC) project. As of October 31, 2018, the project still awaits the Letter of Intent (LOI) from the Pakistani government.

Additional details

According to multiple, official sources, the Government of Pakistan has issued sovereign guarantees in support of all loans issued by Chinese state-owned banks for independent power projects (IPPs) in Pakistan (see https://www.fmprc.gov.cn/ce/cepk/chn/zbgx/t1735166.htm and http://pk.chineseembassy.org/eng/zbgx/202110/t20211010_9558510.htm and https://www.dropbox.com/s/bmx3w2b38o7guxm/Debt%20Pricing%20of%20IPPs%20%28002%29.pdf?dl=0). As such, AidData assumes that the loan captured in this record is backed by a sovereign guarantee from the Government of Pakistan.

Number of official sources

7

Number of total sources

7