Scatec reaches financial close for its first project in Pakistan

Feb 22, 2021 01:54 PM ET
  • The Norwegian solar project designer and nuclear power plant driver Scatec and its local pakistani partner Nizam Energy have closed financing for the 150 MW "Sukkur" solar energy project with an overall financial investment of concerning $100 million.

FMO, the Dutch growth bank, Faysal Bank, Bank of Punjab and PAK Kuwait Investment have authorized credit report contracts for the non-recourse financial debt financing of the Sukkur project. According to the company, the credit centers cover to 75 percent of the overall project expense.

The "Sukkur" project portfolio located in the province Sindh, southeast in Pakistan, was awarded a "costs plus tariff" by the National Energy Power Regulatory Authority (NEPRA) early in 2020. Scatec and Nizam Energy are now functioning to start building within the first fifty percent 2021. Scatec will certainly offer design, procurement and building (EPC), and give Operation & Upkeep, as well as Property Administration Solutions to the power plants. Scatec will hold 75 percent of the equity, with Nizam Energy holding the continuing to be 25 percent.

The Government of Pakistan plans to boost the share of renewable resource to 30 percent by 2030.