Dubai: The Abraaj Group said it has entered into a definitive agreement to acquire a majority stake in Jhimpir Power, a clean energy generation company.
JPL Holdings Pte. Ltd. wholly-owns a 50 MW wind power project in the Jhimpir wind corridor in Southeast Pakistan.
The Project achieved financial close in August 2016 and is expected to commence operations in the first quarter of 2018.
The Jhimpir wind corridor is an established area for wind projects with 550 MW+ of capacity already operational and a further 1 GW+ under the construction and development phase.
The project will be powered by General Electric wind turbines, with the Huadong Engineering Corporation appointed as the EPC contractor and GE providing the overall operations and maintenance for the Project.
“Our investment into the Jhimpir wind corridor marks our second transaction under Abraaj’s dedicated clean energy platform," Sev Vettivetpillai, Managing Partner and Global Head of Abraaj’s Thematic Fund Business.
"With a shortage of over 6,000MW and rising power consumption in Pakistan today, we are excited by the sheer size of the clean energy infrastructure opportunity, enabling government policies and the potential of the Jhimpir wind corridor," he added.
"Having invested across the energy value chain in growth markets, including the power sector in Pakistan, we look forward to growing our renewable footprint and consolidating our presence in the sector,” said Vettivetpillai.
Saad Zaman, Partner at The Abraaj Group, added: “We are pleased to announce the investment of Abraaj into JPL Holdings and look forward to building on the momentum we have gained from the financial closure achieved on our first wind project in Pakistan.
"The attractive renewable power policy framework implemented by the government has created a strong impetus for the private sector to invest in clean energy. Leveraging on our combined operational capabilities, project management experience and know-how, we will successfully develop the Jhimpir wind corridor project and enhance power generation in Pakistan.”
The Abraaj Group has comprehensive investment experience across the energy value chain and has invested c. $1 billion in 10 investments in growth markets. In October 2016, Abraaj entered into a definitive agreement to divest its 66.4 per cent shareholding in K-Electric to the Shanghai Electric Power Company Limited, marking one of the largest private sector transactions in Pakistan and representing one of the global power industry’s most well-recognized operational turnaround stories.
