Karachi, Pakistan, April 25, 2014
—IFC, a member of the World Bank Group, has helped a new low-cost power plant begin operations, saving Pakistan’s power sector hundreds of millions of dollars and cutting the country’s energy deficit.
IFC contributed the largest foreign investment to the Pakistan power sector in the past 15 years
to help build the Uch-II plant, which was inaugurated today. Uch-II is a gas-fired plant that will produce electricity well below the average cost of thermal generation, providing annual savings of around $300 million and generating enough electricity to supply six million people.
“The commencement of the Uch-II project’s commercial operations will help reduce Pakistan’s electricity shortage and provide a much-needed energy mix,” said Rodak Ali Iqbal, Chief Executive of Uch-II Power. “By using indigenous gas as primary fuel, we are converting a low-value, nearly non-marketable resource into a valuable form of energy.”
With a capacity of 404 megawatts, the power plant is expected to meet up to three percent of the country’s annual electricity needs, generating 2,500 gigawatt hours per year. The plant is operated by Uch-II Power, a special purpose vehicle owned by GDF Suez, a leading developer, owner, and operator of power plants across the globe and the largest private sector player in Pakistan’s power sector.
“Pakistan’s energy deficit is a major constraint to economic and industrial development,” said Mouayed Makhlouf, IFC Regional Director for the Middle East and North Africa. “This new plant demonstrates that supporting infrastructure development can help meet the growing demand for power and boost economic growth.”
IFC has been one of the largest supporters of private power projects in Pakistan since 1994, financing seven independent power producers including the Uch-I power plant and K-Electric, Pakistan’s only private and vertically-integrated distribution company. This has increased power generation and improved energy access for approximately 12 million people. This project is part of the Pakistan Power Initiative, a coordinated World Bank Group program aimed at reducing Pakistan’s power deficit through diversified investments in low-cost power projects to replace imported, fuel oil-based generation.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
.
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