In 2017, CDC committed up to $41 million ($20 million of equity and $21 million of debt) for the construction of the project.
CDC is the largest shareholder in Zephyr, with the remainder held by a consortium of local partners, comprising the original developers, the Khaleeli Family, and the Gul Ahmed Metro Group.
The investment is CDC’s first equity investment in Pakistan’s power sector in almost two decades, and first joint debt/equity investment overall.
In addition to equity, we are providing project finance debt alongside Dutch DFI FMO, and United Bank Limited, one of the largest commercial banks in Pakistan.
Pakistan has an estimated 6,000MW shortfall at peak times and suffers regular power blackouts that affect millions of people and businesses. Much of the country’s current power is supplied by imported heavy fuel oils.
Our investment will help boost the country's power supply, with the Zephyr Power wind farm providing an additional source of clean, renewable energy to help reduce the number of blackouts in the region.
Construction work on the wind farm started in May 2017, and the development will see the installation of 25 state of the art turbines each of which have a capacity to generate 2MW. Operations at Zephyr are expected to start in late 2018.
It is expected that the project will generate around 500 construction jobs, with many more created indirectly as a result of improved access to power.
Environmental and social aspects
CDC and FMO have worked with the local management team to implement international best practice on environmental and social (E&S) matters.
We also worked with the company to establish robust health and safety practices early on in the construction phase.
Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.
- South Asia
We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people.
- Investment type
We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).
- Direct Debt
- Start date
For direct investments, this is the date CDC committed capital to the business or project.
For funds, this is the date that CDC committed capital to the fund.
For underlying fund investments, this is the date that the fund invested capital into the business.e
- August 2017
For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).
For funds, this is the total amount that CDC has committed to the fund.
This is the investee company’s place of incorporation; or a fund’s jurisdiction.