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[IPP] CDB provides a $107.7 million loan for 49.5 MW Three Gorges First Wind Farm Project
| Funder | China Development Bank (CDB) |
|---|---|
| Recipient Organization | Three Gorges First Wind Farm Pakistan Private Limited |
| Country | Pakistan |
| Start Date | Jun 01, 2013 |
| End Date | May 09, 2029 |
| Duration | 5,821 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 72710 |
Grant Description
[IPP] CDB provides a $107.7 million loan for 49.5 MW Three Gorges First Wind Farm Project 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
- 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.
- For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
Sources & References
- Two wind power plants to be built in South Pakistan
- Tariff Petition 3 Gorges 49.5 MW at Jhampir
- KWM _ King & Wood Mallesons Represents CDB in Its Wind Farm Project Financing in Pakistan
- TRF-174 TGF Motion 28-10-2016 14756-58.
- Exact Locational Coordinates for Three Gorges First Wind Farm
- Tariff Petition 3 Gorges 49.5 MW
- Determination of Three Gorges Dated 15-12-2011
- Two wind power plants to be built in South Pakistan
- The Three Gorges First Wind Farm Project (Pvt.) Signs Onshore and Offshore Wind Contract (Pakistan)
- China Three Gorges launches 50MW wind farm in Pakistan
- 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)
- CTG 2022 - Prelim OC
- 中国长江三峡集团有限公司2022 年度第六期绿色中期票据募集说明书 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
Three Gorges First Wind Farm Pakistan Private Limited
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