Scatec will hold 75% of the equity in the solar project and will be responsible for operation and maintenance services
Scatec closes financing for Sukkur project. (Credit: Sebastian Ganso from Pixabay.)
Scatec, along with its local partner Nizam Energy, has closed financing for the 150MW Sukkur solar power project in Pakistan.
Located in the Sindh province, southeast in Pakistan, the solar project will be built with a total investment of nearly $100m.
FMO, the Dutch development bank, Faysal Bank, Bank of Punjab and PAK Kuwait Investment have signed credit agreements for the non-recourse debt financing of the Sukkur project.
The credit facilities are expected to cover up to 75% of the total project cost.
Scatec CEO Raymond Carlsen said: “We are proud to complete financing of our first project in Pakistan together with our partners. The Government plans to increase the share of renewable energy to 30% by 2030 and we look forward to supporting this growth by delivering 305GWh of clean power annually.
“This is enough to cover the electricity needs of about 150,000 households and will contribute to avoid more than 106,000 tonnes of GHG emissions per annum.”
The Sukkur project was awarded a ‘costs plus tariff’ by the National Energy Power Regulatory Authority (NEPRA) in early 2020.
Scatec and its local partner, Nizam Energy are currently working to commence construction at the project in the first half of 2021.
The company would provide engineering, procurement and construction (EPC), along with operation and maintenance (O&M), and asset management services to the power plants.
Scatec will hold 75% of the equity in the solar project, while Nizam Energy will own the remaining 25%.
Headquartered in Oslo, Norway, Scatec develops, builds, owns and operates solar, wind and hydro power plants and storage solutions.
In January, the company completed the acquisition of SN Power, a Norway-based hydropower developer and independent power producer (IPP), from Norfund.
The acquisition includes SN Power’s portfolio of hydropower assets located across the Philippines, Laos, and Uganda.