1. Brief introduction
Three Gorges second wind power project (2×50MW) is located at Jhimpir, Thatta District, Sindh Province, 90KM west from Karachi. This is a foreign direct investment (FDI) project. It is invested, developed and constructed by Three Gorges Second Wind Farm Pakistan Limited (TGS) and Three Gorges Third Wind Farm Pakistan Private Limited (TGT).
The total investment amount is USD 224 million on the basis of Build-Own-Operate (BOO), with a construction period of 18 months and an operation period of 20 years. The total installation capacity is 100MW, with an annual electricity output of 286.6 GWH. It was listed as actively promoted project in the China-Pakistan Economic Corridor in August, 2014.
2. Latest progress
The project companies have fulfilled many milestones since 2014. The ground breaking ceremony was held in January 2016. The project formally commenced on September 1, 2016. Power purchasing agreement (PPA) and implementation agreement (IA) were signed. Financial close was achieved in March 2017. The rate of equity to loan is 30% :70%. The loan is provided by China Development Bank. The project company is working towards localization, diversification and internationalization.
3. Corporate social responsibility
The development goal of Three Gorges is to “build a power plant, promote the local economy, improve the local environment and enhance the welfare of the local people”. The project plans to bring financial, social and ecological benefits to the local people. It has created more than 200 direct job opportunities for the local people during the construction period. Meanwhile, Three Gorges is promoting the development and upgrading of the local accessory industries, including wind tower manufacturing industry.
The project companies have invested USD 42 million so far and paid USD 0.7 million tax in 2016.
Adhering to the concept of sustainable development, the project companies have striven for environment protection scrupulously with high standard. The dust caused by construction has been treated actively through regular watering to construction site and surrounding roads. Air quality has been protected by controlling dust effectively. According to IFC standards, the project is constantly monitoring the environmental impacts caused by the construction, observing birds in the region by hiring a qualified team, and protecting living environment of the birds by adopting relevant measures.
IFC officials visited the project on January 12, 2017. They visited Three Gorges’ project office and central control room, then moved to TGS & TGT construction sites and camp. Environmental compliance and the performance of project companies were found satisfactory.
The project companies have taken the following steps to undertake its corporate social responsibility so far:
1) Providing skilled and un-skilled jobs to the educated and un-educated locals of the area.
2) Developing infrastructure road network for easy mobility and access to main road.
3) Providing drinking water to the local villagers to overcome the drinking water shortage problem.
In addition, the project companies are planning to donate some teaching facilities to the largest local primary school, Government Primary School Jhimpir, so as to promote the development of local education.
(Qin Guobin, CEO, China Three Gorges South Asia Investment Limited)