Low-cost and clean power in Pakistan
Lakeside Energy, Pakistan
Who is our client
Lakeside Energy is a Special Purpose Vehicle that has been created to develop, finance, construct and operate a 50MW wind park in Pakistan, in Thatta District.
The total expected project costs are around USD 67 million. FMO's financing is for up to USD 26.7 million (acting as co-Lead Arranger), of which USD 1.7 from AEF, and parallel to the local commercial bank Faysal Bank Limited who participates with an equal amount of USD 26.7 million (in local currency). As part of the project, a Community Development Program will be outlined and implemented to support the local communities.
Why we fund this project
The project contributes to economic growth by adding low-cost and clean power in Pakistan, a country which is currently experiencing power shortages. Long-term finance is not readily available in Pakistan.
The E&S category is B+, mostly as it entails a small-scale energy project, to be built in a sparsely populated, semi-arid area. As such, the potential adverse E&S impacts are limited, generally site-specific, largely reversible, and susceptible of being mitigated through readily available mitigation measures. With regards to the land acquisition and involuntary resettlement, a precautionary approach was taken - as it was not possible to completely rule out potential land acquisition legacy issues and minor economic displacement in the given time-frame.