Kuwait’s Enertech to finance power projects in Sindh

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KARACHI: Sindh government and Kuwait’s national company have signed a memorandum of understanding (MOU) with regard to a major investment in Sindh’s power sector.

The Kuwaiti company, in collaboration with the provincial government, will liaise with all the relevant provincial and federal authorities to get the required approvals for the projects.

Under the MOU, the Kuwaiti company, Enertech Holdings, would invest in ‘Waste to Energy’ projects, starting with a 50MW power project in Karachi – scalable upwards to a mutually agreed capacity – as well as in other municipalities of Sindh that are mutually identified and agreed for implementation.

Meanwhile, a wind/solar hybrid power project augmented with gas generation would be launched to supply continuous power to Dhabeji Economic Zone, starting with 50MW and scalable upwards. Similarly, off-grid microgrids would be installed in the mutually-identified remote villages of Sindh.

As part of the MOU, the provincial government and the Kuwaiti company will develop a strategic partnership called “Investment Memorandum” in order to ensure that the projects are developed on a fast track basis.

The broad steps to be undertaken included issuance of Letters of Intent for the projects by the relevant government agency/entity and identification and procurement of land, for which the Sindh government shall be responsible for providing Enertech with land suitable for the development for the projects under long term lease agreements in line with provisions of government’s policy in vogue.

Enertech shall complete all technical studies, including interconnection studies, geotechnical & topographical studies, environment impact assessment and feasibility studies.

Under the MOU, the Sindh government will have an option to enter into an equity partnership with Enertech against the land provided for the projects. The provincial government and relevant federal agencies shall formulate a security plan in collaboration with Enertech for the projects and personnel associated therewith.

All individual projects under this memorandum shall be governed by individual agreements and are subject to the regulatory compliance and the coordination process between the parties. The investment in individual projects may include other possible investment partners, subject to the provisions of Sindh government’s policy in vogue.

Enertech has appointed Yasser Malik as its key person who shall coordinate the progress of the projects with the Sindh government.

The signing ceremony was performed by Investment Secretary Ahsan Mangi on behalf of the provincial government, while Enertech Holding CEO Abdullah Al-Mutairi represented Kuwait.

The signing ceremony was witnessed by Sindh Chief Minister Syed Murad Ali Shah, Energy Minister Imtiaz Shaikh, Local Government Minister Saeed Ghani, Advisor to CM Murtaza Wahab, Chief Secretary Mumtaz Shah, Planning & Development Chairperson Naheed Shah and Consul General of Kuwait Mohammad Khalid Abdullah Alkhalidi.

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