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12th October 2017

Sale of shares allows recycling of public funds for future projects

Private sector buys InfraCo Asia stake in Pakistan wind farms

InfraCo Asia has sold its shares in the Metro and Gul Ahmed wind power projects, in Pakistan, to the private sector, allowing the public funds it invested during development to be recycled.

The sale marks the PIDG company's first complete exit from a utility scale renewable energy project and demonstrates its ability to catalyse private sector investment in infrastructure in low-income and fragile and conflict affected states.

InfraCo Asia CEO Allard Nooy said: “By providing the investment and leadership capital needed to bridge the gap faced by projects in the early stage of development, InfraCo Asia has helped catalyse private sector investment in these projects.

“Now, we are able to exit in favour of the private sector.”

The Metro and Gul Ahmed Wind farms reached commercial operation in September and October 2016 respectively.

The two 50MW plants now provide improved access to renewable power for 700,000 people, including almost 90,000 who live below the poverty line.

Working with local private sector partners, InfraCo Asia contributed a combined US$15.6m towards development costs. Its sister facility, InfraCo Asia Investments, provided US$18.1m as investment at financial close and sponsor support.

InfraCo Asia’s stake will be purchased by Daelim Energy, part of the Daelim Group, which has a proven track record in the energy and infrastructure sectors.

Both InfraCo Asia and InfraCo Africa will continue to invest in projects at the earliest stages, helping to overcome development challenges, prove viability and attract private sector investment, allowing them to exit.

By mobilising greater private sector investment in infrastructure, PIDG companies promote economic development and combat poverty.