Project detail - GHARO SOLAR (PRIVATE) LIMITED

Who is our customer

The SPV is Gharo Solar (Private) Limited (“Gharo Solar”). The Sponsors are (i) Mr. Rana Nasim Ahmed, (ii) Windforce (Pvt) Ltd., (iii) Norsk Solar A.S. and (iv) Mr. Muhammad Khaqan Babar. The Sponsors have extensive experience in the (solar) power sector in project development and construction management. Among others, Mr. Rana Nasim Ahmed is the majority shareholder of the 18 MW Harappa PV solar project in Punjab. This was the first PV solar IPP with sun tracking technology in Pakistan, which reached COD in October 2017.

What is our funding objective?

The debt funding is dedicated to the construction and operation of a 50MWp PV Solar plant in the province of Sindh, in the Islamic Republic of Pakistan. The FMO investment in Gharo Solar is a USD 22.5m MLA investment, parallel to the local commercial banks (i) Bank Alfalah Limited and (ii) the Bank of Punjab.

Why do we fund this investment?

FMO provides the financing as the project will contribute to economic growth by providing additional low-cost and clean power in Pakistan, a country which is currently experiencing power shortages. Furthermore, FMO is additional in providing long-term USD finance which is not otherwise available in Pakistan.

What is the Environmental and Social categorization rationale?

This is a category B+ project with potential limited adverse social and environmental (E&S) risk and / or impacts that are few in number, generally site-specific, largely reversible and readily addressed through mitigation measures. The following IFC Performance Standards are triggered: • PS 1 - Assessment and Management of Environmental and Social Risks and Impacts • PS 2 - Labour and Working Conditions • PS 3 - Resource Efficiency and Pollution Prevention • PS 4 - Community Health, Safety and Security The following performance standards are not triggered: • PS5 - Land Acquisition and Involuntary Resettlement, for the transmission line since the land process falls under the government’s responsibility. In relation to the solar plant, PS5 does not trigger since there is no right to expropriation and an agreement was made with land owners and with no economic displacement; • PS6 - Biodiversity Conservation and Sustainable Management of Living Natural Resources, since there are no protected/important species, habitats or ecosystem services impacted; • PS7 - Indigenous Peoples, since there are no indigenous people in the project’s area of influence; and • PS8 - Cultural Heritage – No archaeological findings or any other particular cultural heritage features were identified as impacted by the project.

More investments

Date	Total FMO financing
1/14/2019	USD 14.50 MLN