Title front - Sindh Board Of Investment, Government Of Sindh

OverviewPakistan is a developing and energy-deficient country. Despite its rich coal and gas reserves, Pakistan,like other countries of the region is facing a serious challenge of energy crisis. The main cause ofenergy crisis in the country is imbalanced energy portfolio in which imported inputs like furnace oilwere given preference. The solution to these problems is the use of renewable energy resources. Therenewable energy resource gives many environmental and economical benefits in contrast toconventional energy sources.Resource BaseSindh is blessed with a most precious wind corridor. It is in fact a goldmine as resource can be utilizedwithout much difficulty. As per latest estimates this corridor alone can generate electricity up to 50,000MW if utilized to its optimal capacity. The Gharo - Jhimpir wind corridor is 60 kms wide and 180 kms longwith monthly average wind speeds exceeding 7-8 meters per second, which are one of the highestwind speeds in the world.Incentives and FacilitationTo attract local as well as foreign investment, Government of Pakistan has announced some mostlucrative incentives for investors in the Renewable Energy Policy 2006, which are listed below:• Specific-purpose land available for the list of the projects to eligible investors on extremely attractiveminimum annual rentals US 17 cents per sq yard/annum for direct impact area (Footprints/DirectImpact Area as per newly notified Statement of Conditions).• Upfront tariff of 14.67 cents / KWH for all those investors who are ready to complete projects in 18month time (CoD) and achieve Financial Close by December, 2012.• Long-term (20 years) throughput agreements with the Power Purchaser i.e. WAPDA backed by GOPthrough Implementation Agreement and Sovereign Guarantee. Guaranteed purchase of allelectricity produced by the project for the entire concession period (20 years).• Comprehensive coverage to investors against political risk and risk of change of law through forcemajeure provisions.• Guarantee of buyback of the facility in case of termination of the project.• Wind data available from various sources accounts for 5 years, enabling a great degree ofaccuracy for the purpose of calculation of wind speed, direction, density, frequency, etc.• Coverage of Wind Speed Risk (for those who do not opt for upfront tariff).• Comprehensive tariff regime on a cost-plus basis.Sindh - The Land of Endless Opportunities