Pakistan, World Bank signed $100 million agreement for ‘Sindh Solar Energy Project’

Islamabad: First off, it seems that the government of Pakistan and World Bank signed a Financing Agreement worth $ 100.0 million. That’s for “Sindh Solar Energy Project.” Therefore it’s with the objective to increase solar power generation and access to electricity in Sindh Province.

In addition, the project will support the deployment of solar power in Sindh. This power will be spanning three market segments. They are the utility scale, distributed generation, and at the household level.

Utility-Scale Solar includes development of solar parks. These are to support private sector investment. Also launching Pakistan’s first competitive bidding for solar power production. They started with an initial 50 MW pilot solar auction.

Distributed Solar includes at least 20 MW of distributed solar PV. That’s on the rooftops and other available space. Especially on and around public sector buildings in Karachi. Also Hyderabad and other districts of Sindh Province. Provision of Solar Home Systems to 200,000 households. For that’s in areas with low or no electricity access.

The total cost of the project is $105.0 million. The International Development Association (IDA) will extend financing of $ 100.0 million for the project and Government of Sindh will contribute $ 5.0 million.

Public funding will be used to leverage private sector investment and/or expertise in the three segments, with an emphasis on long-term sustainability, developing domestic solar PV experience, and the emergence of self-sustaining markets.

The Project will introduce and showcase international best practice with renewable energy auctions. It is reducing the headline cost of solar deployment. It’s creating sustainable business models for potential replication. Furthermore it’s building institutional and private sector capacity. As well as identifying opportunities for future renewable energy deployment that address issues of grid integration.

Most noteworthy, this Project is designed to help steer Pakistan toward a lower-carbon path to development.

In conclusion, Patchamuthu Ilangovan, Country Director, World Bank signed the Financing and the Project Agreements on behalf of International Development Association.

Finally, the Secretary, Economic Affairs Division (EAD), thanked the World Bank for extending its continuous support to Government of Pakistan. Finally and all in its efforts to achieve sustainable economic development in the country.