The Asian Development Bank (ADB) will provide a $36.8m loan for a privately owned wind farm in Pakistan. The loan will be used by Turkish energy firm Zorlu Enerji Electrik Uretim to install wind turbines in the southern Sindh province. The wind project will cost $147m with 30% financed through equity provided by Zorlu Enerji.
The rest will be financed through US dollar-denominated loans from ADB, the International Finance Corp, the ECO Trade and Development Bank and a Pakistan rupee loan from Habib Bank.
ADB director of Private Sector Operations Department Michael Barrow said that acute energy shortages, caused by low investment, are cutting into Pakistan's economic growth.
"This deal should provide a bankable template for future privately funded wind projects, and send a signal that Pakistan's wind sector is attractive for private sector investment and financing," Barrow said.