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Overview

[IPP] CDB provides a $107.7 million loan for 49.5 MW Three Gorges First Wind Farm Project

Commitments (Constant USD, 2023)$111,460,830
Commitment Year•2013Country of Activity•PakistanDirect Recipient Country of Incorporation•PakistanSector•EnergyFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 1, 2013
Start (actual)
Jan 4, 2012
End (actual)
Nov 25, 2014
First repayment (originally scheduled)
Jun 1, 2014
Last repayment (originally scheduled)
Nov 27, 2025

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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This 49.5MW wind farm is located in Jhampir, near Nooriabad in Thatta District and Sindh Province. The exact locational coordinates of this project are provided at: https://www.openstreetmap.org/way/595231005 and https://www.openstreetmap.org/way/595649788#map=15/25.0643/67.9452 and https://www.openstreetmap.org/relation/8395043

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% Chinese ownership

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Three Gorges First Wind Farm Pakistan Private Limited

Implementing agencies

Joint Venture/Special Purpose Vehicles

  • Three Gorges First Wind Farm Pakistan Private Limited

State-owned companies

  • China Huashui Hydropower Development Corporation
  • China International Water and Electrical Corporation (CWE)

Guarantors

Government Agencies

  • Government of Pakistan

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Loan desecription

[IPP] CDB provides a $107.7 million loan for 49.5 MW Three Gorges First Wind Farm Project

Grace period•1 yearsGrant element•22.1179%Interest rate (t₀)•4.91426%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•12.5 years

Narrative

Full Description

Project narrative

In June 2013, China Development Bank (CDB) provided a $107,798,767 million loan to Three Gorges First Wind Farm Pakistan (PVT) Limited (三峡巴基斯坦第一风电有限公司) for a 49.5 MW Wind Farm Project. Three Gorges First Wind Farm Pakistan (PVT) Limited is a project company (special purpose vehicle) and subsidiary of China Three Gorges South Asia Investment Ltd. (CSAIL) created for the purpose of financing, designing, implementing a maintaining a 49.5MW wind farm in Jhampir, near Nooriabad in Thatta District and Sindh Province. The project involved the supply and installation of 33 Goldwind wind turbines. The project was implemented on a Build-Own-Operate (BOO) basis. The total project cost was $134,748,459 and it was financed with with 80% debt and 20% equity. Based on the the nature of debt financing details provided by Three Gorges First Wind Farm Pakistan (PVT) Limited in its tariff petition to Pakistan’s National Electric Power Regulatory Authority (NEPRA), the estimated face value of CDB’s term loan facility is $107,798,767 and the estimated terms of the loan are as follows: a 12.5-year maturity (final maturity: June 2025), a 1-year grace period, and an interest rate of 6-month LIBOR plus a 4.5% margin. Sinosure also provided insurance for the loan. The estimated value of the Sinosure fee is 6.5% of the face value of the term loan facility. China International Water and Electric Corporation was the onshore EPC contractor and China Huashui Hydropower Development Corporation was the offshore EPC contractor. The implementation of the project commenced on or around January 4, 2012. It reached its commercial operations date (COD) on November 25, 2014. The wind farm is reportedly fulfilling the electricity needs of around 60,000 households.

Staff comments

1. 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. 2. AidData has estimated the loan's all-in interest rate -- at the time it was issued -- by adding 4.5% to average 6-month LIBOR in June 2013 (0.41399%).