fauji foundation pakistan

Fauji Foundation and Renewable
Energy Sector of Pakistan
September 23, 2014
NUMOV/German Near and Middle East Association Pakistan Solar and Wind Energy
Business Delegation 23rd September 2014 , Hamburg-Germany
Presentation Layout
Overview of Fauji Group
Brief History
Corporate Profile
Fauji Group- at a glance
Investment portfolio-at a glance
Financial Profile
Contribution to Society/ National Economy
Current Key Investment Initiatives
Renewable Energy Projects
Wind
Solar
Prospects in RE sector of Pakistan
Brief History
The Fauji Foundation is a trust set up
for the welfare of families and
dependents of ex-servicemen.
Fauji Foundation was established as
a charitable trust (incorporated under
the Charitable Endowments Act
1890) in 1954, and operating on a
completely self-sustaining basis,
channels approximately 80% of the
profits from commercial ventures into
welfare operations (Health and
Education) of beneficiary population.
These potential Beneficiaries now
number approximately 9 million, i.e.,
around 5% of Pakistan's population.
Fauji Foundation extends services to
them in the fields of health, education,
technical and vocational training.
Corporate Profile
•
Fauji Foundation (FF), a growth driven
organization, is one of the largest
conglomerates in Pakistan, with a strategically
diversified investment portfolio in Fertilizer,
Cement, Food, Power Generation (thermal
and wind), Gas Exploration, LPG marketing
& distribution, Financial Services, and Marine
Terminals (Oil and Grain).
“Fauji Foundation unique
business model is to develop
and operate profitable
businesses to fund its not-forprofit welfare operations”
Fauji Group - At a Glance
Investment Portfolio- At a Glance
Fauji Foundation Contribution to Business Sector
Financial Profile
Contribution to Society/ National Economy
Current Key Investment Initiatives
Renewable Energy Projects-Wind
In 2010, In light of its vision of diversification,
Fauji Foundation initiated process of wind
energy project.
The investment decision investing in RE Sector
projects was made in light of Fauji Foundation’s
endeavour of investing in profitable projects that
provides the Foundation with; the guaranteed
return , no inherent off take risk and wind speed
variation risk (causing loss in revenue) being
hedged by Government of Pakistan.
Two projects (Foundation Wind Energy Limited
projects) , each of 50 MW capacity, are under
development.
One 50 MW project (FFC Energy Limited) has
been commissioned as of May 2013.
Both Foundation Wind Energy
Limited projects have been
successfully registered with
UNFCCC as CDM Project.
Estimated Carbon Credits to be
generated approx. 90,000/year.
Fauji Foundation is currently looking into and evaluating few more new wind project
for investment purpose and increasing its RE portfolio.
Renewable Energy Projects-Wind
Foundation Wind-I
Company Name
Foundation Wind Energy-I
Limited
Plant Capacity
50 MW
Ownership
Wind Turbines
20 Nordex 2.5 MW N-100
Location
Sindh, Pakistan
FF Group
Capasia
: 65%
: 35%
EPC Contractor M/s Nordex Germany (Lead)
& M/s Descon Pakistan
consortium
Debt: Equity
75:25
Commercial
Operation Date
December 2014
Renewable Energy Projects-Wind
Wind Turbines
Location
EPC Contractor
Debt: Equity
Foundation Wind-II
Foundation Wind Energy-II (Private) Limited
50 MW
FF Group
: 55%
Tapal Group : 20%
CapAsia
: 25%
20 Nordex 2.5 MW N-100
Sindh, Pakistan
M/s Nordex Germany (Lead) & M/s Descon Pakistan consortium
75:25
Commercial Operation Date
December 2014
Company Name
Plant Capacity
Ownership
Renewable Energy Projects-Wind
Company Name
Plant Capacity
Wind Turbines
Location
EPC Contractor
Debt: Equity
Commercial Operation Date
FFC Energy Limited
FFC Energy Limited
49.5 MW
33 Nordex 1.5 MW N-77
Sindh, Pakistan
M/s Nordex Germany (Lead) & M/s Descon Pakistan consortium
80:20
May 2013
Renewable Energy Projects-Solar
Fauji Foundation has initiated the
process to develop a 10 MWp PV Solar
power project, Foundation Solar Energy
Limited (FSEL). The Project has been
awarded LOI from Alternative Energy
Development Board (AEDB) of Govt of
Pakistan and has also filed for Solar
Upfront Tariff with National Electric
Power Regulatory Authority (NEPRA),
Govt of Pakistan.
Currently, EPC Techno- Commercial
and Financial Bids invited from world
renowned EPC contractors are being
evaluated.
Prospects in Renewable Energy Sector of Pakistan
As renewable energy source, wind and
solar energy presents exciting investment
opportunities in Pakistan.
Investment
experience
of
Fauji
Foundation:
Project life of 20-25 years is allowed
The wind corridor of Pakistan has an
estimated 50,000 MW of potential.
Currently, there are many upcoming/in
development phase projects as well as new
future projects that are attracting foreign
equity investment.
ROE of above 18% (in US Dollar
terms).
Minimum
requirement
(Equity).
Possibility of attracting competitive
and low rate financing from DFIs.
Existing developed infrastructure
around proposed project sites.
RE sector is tax exempt
Investor
structure
Solar energy has excellent potential in
Pakistan that receives high levels of solar
radiation throughout the year. Solar Energy
is available at a rate of approx. 5.5 Kwh per
square meter in Pakistan.
capital
is 80%
friendly
structure
(Debt):20%
Regulatory
FAUJI FOUNDATION PAKISTAN
PLANNING AND DEVELOPMENT DIVISION
FAUJI FOUNDATION HEAD OFFICE
68 TIPU ROAD, CHAKLALA,
RAWALPINDI, PAKISTAN-46000
TEL: (92-51) 5951821-40
FAX: (92-51) 5951732
WWW.FAUJI.ORG.PK