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[IPP] China Eximbank pledges loan for Rakh Chaubara 100 MW Solar Power Project
| Funder | Export-Import Bank of China (China Eximbank) |
|---|---|
| Recipient Organization | Zhenfa Pakistan New Energy Company (Pvt.) Limited (ZPNECL) |
| Country | Pakistan |
| Start Date | Jul 07, 2017 |
| End Date | Sep 02, 2027 |
| Duration | 3,709 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 72387 |
Grant Description
[IPP] China Eximbank pledges loan for Rakh Chaubara 100 MW Solar Power Project On July 7, 2017, China Eximbank submitted a letter of intent (LOI) to provide a USD 63,760,000 loan for the Rakh Chaubara 100 MW Solar Power Project.
The borrower would be Zhenfa Pakistan New Energy Company (Pvt.) Limited (ZPNECL), a special purpose vehicle (or project company) and subsidiary of Chinese company Zhenfa Energy Group Co. Ltd.
It is unclear whether China Eximbank ever formally committed these funds.
The purpose of this project was to construct a 100 MW solar power plant in Rakh Chaubara within Layyah District, Punjab Province, Pakistan. This USD 91,088,000 project would be financed with a debt:equity ration of 70:30. China Eximbank's loan would cover the entire debt component and ZPNECL would cover the equity portion.
It is unclear whether works ever began.
Staff Comments
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.
Sources & References
- Tariff Petition by Zhenfa Pakistan New Energy Company (Pvt.) Limited
- 中国驻巴基斯坦使馆发言人就美方涉中巴经济走廊言论答记者问
- We do not have China debt problem: Umar
- Debt Pricing of IPPs (002) Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
All Grantees
Zhenfa Pakistan New Energy Company (Pvt.) Limited (ZPNECL)
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