Modern Energy Management (MEM), a Singapore-headquartered specialist in delivering project lifecycle certainty to renewable energy developers, financiers and investors, has announced it will provide project management services during construction of the 50MW Hawa wind farm in the Sindh province of Pakistan.
Irshad Salim (BE2C2 Report) — With a wind energy development pipeline of over 2GW scheduled for installation by 2018, Pakistan’s wind ambitions will require strong technical and project expertise in order to continue to secure the foreign investment that has been allocated to the market to date.
MEM’s initial involvement in the Hawa project came when advising Canadian renewable energy IPP, JCM Power, on investing in the Pakistani wind market. Working directly with the IPP and using its own Investment Grade Verification (IGV) service, MEM carried out pre-screening and initial due diligence, as well as assisting the investor in de-risking the project following financial close.
JCM Power, an Ontario-based Canadian renewable energy company (Independent Power Producer), develops and operates projects in growth markets, through development, construction and operation of renewable energy facilities and HVDC transmission lines.
Following the pre-investment work with JCM Power, MEM has now been appointed to provide project management services during the construction.
Having now achieved financial closing of $130 million, construction on the Hawa project is expected to be completed ahead of initial power production in February 2018 with full operation by second half of the year.
According to reports, the project is part of the 35 wind power projects in the pipeline — having a cumulative capacity of 1749 MW, and at different stages of development — they are projected to be operationalized by 2018. (see graphics)
Powered by GE turbines, the construction of JCM’s project will be managed by HDEC, a subsidiary of PowerChina.
“At MEM we believe that the Pakistan wind energy market offers an excellent opportunity for emerging market investors,” says Aaron Daniels, Managing Director, Modern Energy Management.
“Our unique approach in bridging the various development silos – financial, commercial and technical – enables us to reduce costs and de-risk projects in emerging markets, significantly improving the internal rate of return for investors. In this instance, our market knowledge enabled us to identify the Hawa Energy Project as that which best suited JCM Power’s requirements.”
Jon Bahen, Technical Director of JCM Power, says: “We had already partnered with MEM in other emerging markets, so we’re aware of the firm’s expertise in securing projects of an investment grade standard. We look forward to continuing our work with the business as the Hawa wind farm moves towards construction completion.”
In a related note, Engr. Samir Dossal, President of Canada Pakistan Business Council, said the platform has been making efforts to help expand trade with Pakistan. “From $650 million in 2014, it (trade) has doubled — it went over $1.44 billion in 2016,” said Dossal to BE2C2.
The CPBC President mentioned some of its recent activities related to Pakistan-Canada business and trade enhancement initiatives. According to him, a trade delegation visited Pakistan in which the team met with the Governor and Chief Minister of Punjab, as well as high-level meetings with the Punjab Board of Investment and Trade (PBIT), the Sindh Board of Investment (SBIT), and the FPCCI.
BE2C2 is a business unit of Irshad Salim Associates which produces reports, infographics, analytics and analyses based on data and information from sources readily available on the web and in the public domain.
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