ISLAMABAD, Nov 8: A US-based energy firm plans to invest $1.2 billion in Pakistan's wind power generation sector in Sindh province, the Ministry of Finance said in a statement.
Chief Executive Officer of Access Energy Group International (AGI) of the United States, Shahid Naeem met with Minister of State for Finance Omar Ayub Khan here on Monday and informed him that his company was planning to invest $1.2 billion in Pakistan's energy sector over the next five years.
The company will develop a 100mw wind farm, extendable to 1,000mw, in the province. The initial investment for the first phase would be over $109 million to be brought entirely from abroad.
In the next five years, depending on the success of the first phase, AGI has made commitments to install 900mw generating capacity in the region.
The relevant memorandums of understanding (MoUs) for the above projects have been signed with Alternate Energy Development Board (AEDB) of Pakistan.
The minister was informed that AGI in cooperation with AEDB was also in the process of making arrangements for transfer of technology and for setting up a Solar Cell Manufacturing plant in Pakistan.
Working papers for this project have been finalized and companies with the manufacturing capabilities in Pakistan have been short-listed.
AGI has already acquired manufacturing rights for wind turbines in Pakistan. This will allow for a new industry to be set up in the country with worldwide export potential. The company is also planning to set up a training institute in Pakistan to develop human potential in the field of renewable energy.
The minister was further told that the AGI has commissioned a Canadian firm to manufacture Solar Power units with a 25kw capacity to be installed in different villages in Pakistan in order to provide a source for inexpensive electricity for small villages.
Mr Ayub appreciated that an expatriate Pakistani was working actively to bring big investments and technology in Pakistan. He said the continuous growth of Pakistan's economy has increased power demand manifold. It has now become imperative to take immediate steps to look for alternate sources of energy.
The minister said the government was encouraging foreign and local investment in the energy sector and was trying to remove all bureaucratic hurdles faced by the investors.