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Sachal 50MW Wind Farm Project
Special Report on CPEC Projects (Energy: Part 2)
2018/10/01

1. Brief introduction

The Sachal wind power project is an early harvest project under China-Pakistan Economic Corridor (CPEC). It is located in Jhimpir, Thatta District, Sindh Province, about 100km northeast of Karachi. The total installed capacity of this project is 49.5MW, and 33 Goldwind brand wind turbine generators (WTGs) with a capacity of 1.5MW are installed. It is invested by Sachal Energy Development (private) Ltd., in which Arif Habib Corporation Limited holds 100% shares. HydroChina International Engineering Co., Ltd. is the engineering procurement construction (EPC) contractor.

2. Latest progress

Sachal wind power project was the first project which achieved financial close under CPEC. The total amount of investment is USD 110 million. The Industrial and Commercial Bank of China (ICBC) provided a loan. The loan agreement was signed in February 2015 in Beijing. The debt and equity ratio is 85%:15%. This is the first project under CPEC which singed loan agreement. On 20 April, 2015, President Xi Jinping and Prime Minister Nawaz Sharif inaugurated the Sachal project. The groundbreaking formally commenced in December 2015. The period of construction is 453 days (15 months).

2016 is a key year for Sachal wind power project and 85% of the EPC contract was completed. Under high temperature environment, through the construction at night, the foundation of all 33 WTGs was successfully completed, and the erection of WTGs started in the windy season. The erection work and construction of substation was also completed. The EPA test is being carried out intensively. Final inspection of all the 33 WTGs and the static commissioning work was completed, too. The milestones of energization and commercial operation date (COD) was achieved on 10 April 2017. This is the second energy project and the fourth early harvest project completed under CPEC.

3. Corporate social responsibility

HydroChina is actively engaged in local public welfare activities to fulfill its corporate social responsibility. It has established harmonious relationship with the local government and residents.

1) Sachal wind power project provided about 200 jobs to the local residents.

2) As the project is located in the semi-desert area, and the local residents suffer from serious water shortages, HydroChina is providing drinking water to them on a regular basis.

3) Because local medical resources and medical conditions are limited, the doctor working for HydroChina is providing physical examination for residents in the nearby village on a regular basis, and appropriate drugs free of charge.

4) HydroChina also sent desks, books and other items to the local school.

5) HydroChina supported a friendship cricket match between Chinese and Pakistanis in May 2016. The match attracted the attention of 6 local television channels and 21 newspapers.

(Yang Jianduo, Chief Representative of PowerChina in Pakistan)

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