Pakistan Prime Minister Invites Turkish Investment in Power Projects

Prime Minister Nawaz Sharif has invited leading Turkish companies to invest in mega projects, including energy sector projects – Diamer-Bhasha Dam and coal fired power plants in Gaddani (Balochistan). Prime Minister during his visit to Turkey from September 16-19, 2013 to co-chair the 3rd meeting of the High Level Co-operation (HLCC) met with CEOs of a number of leading Turkish companies and invited them to avail of the business friendly economic policies of the government by investing in Pakistan.

The companies are: i) Nurol Group, a major Turkish conglomerate with interests in construction, defence, manufacturing, tourism and finance. Nurol Group’s investment interests in Pakistan include construction of dams (interest in Bhasha Dam), coal fired thermal plants, nuclear power plants, wind & solar energy, construction of Motorway on BOT basis. Prime Minister invited the Group Chairman to visit Pakistan in early November, 2013 and encouraged the group’s investment in hydel projects such as Bhasha and Dasu, motorways between Lahore and Karachi, civil nuclear plants and low cost housing.

ii) LIMAK Group, with interests in infrastructure, airport construction and management, port management, energy, tourism, cement, etc. LIMAK’s areas of potential investments in Pakistan include hydroelectric projects, including Kurram-Tangi Dam and Gomal Zam Dam, coal fired energy, wind energy. The Prime Minister invited Nihat Ozdemir of LIMAK to consider visiting Pakistan in October, 2013 and encouraged LIMAK’s investments in coal fired energy plants in Gaddani Power Park, hydro power plants and wind energy; build a 7 kms jetty for transportation of coal to Gaddani Power Park; and in construction of airports on BOT basis.

iii) STFA, a big business house with diversified activities in marine construction, civil/infrastructure works, soils and foundation engineering, oil, gas and power and engineering and management consultancy. Investment interests of the company in Pakistan include electricity transmission lines (MoU signed), wind energy (MoU signed), airport construction in partnership with STFA on BOT basis, ports and marine terminals, STFA is also looking at the potential of coal fired energy projects. The Prime Minister invited the company to visit Pakistan soon. He indicated that Pakistan would be interested, in BOT investments in airport construction and management, electricity transmission lines and energy projects, including wind.

iv) ZORLU Holding, with interests in energy, textiles, real estate and electronics. ZORLU energy deals in all operations of energy chain including project development and turn-key delivery of power plants. Its existing projects/investments in Pakistan include a 56 MW wind energy farm in Jhimpir, Sindh which is extendable to 250 MW and import textiles from Pakistan. New investment interests of the company in Pakistan include additional wind energy projects (already has a license of 300 MW, requires additional allocation of land, will seek availability of financing through IFIs), hydroelectric plants, has no experience with coal based power plants but is ready to study the option, possible manufacturing of home appliances. After the meeting, in a simple ceremony, the Prime Minister and Ahmet Zorlu made a symbolic inauguration of 56 MW wind energy project in Sindh.

v) SANKO and TEYO, SANKO, a 108 years old company, deals in energy, heavy equipment and machinery, cement and textiles. TEYO Group is involved in a 700MW coal project in Turkey. These companies have an interest in a block in Thar coal area. Prime Minister asked the two groups to consider investments in (a) Gaddani power park in Hub and (b) build a power plant in Thar coal area. He also invited them to visit Pakistan soon (Prime Minister was informed that the Group was in the process in internal assessment and is considering investment in coal plants as well as installation of transmission lines as part of the investment package).

vi) Albayrak Group, with interests in construction, manufacturing of tractors and engines, textile and paper, transportation including bus fleets, waste management, etc. Its existing investments in Pakistan include Lahore Solid Waste Management and Lahore Metro bus. Albayrak Group’s investment interests in Pakistan include urban transport including Metro bus systems, inter-city luxury Mercedes Bus Service, restaurants on motorways, Solid Waste Management, Low cost housing, possible manufacturing of Wind Turbines and Waste Collection Trucks. The Prime Minster asked the Finance Minister to urgently look into the group’s complaint about exorbitant 60 percent import duty on buses. The Prime Minister requested the group to finalise its plans early (bus service permissions will be granted by provincial authorities).

vii) TAV Airports Holding – airport operator in Turkey with a footprint in the Middle East and Eastern Europe. TAV work model is Public Private Partnership (PPP), the most common being Build-Operate and Transfer (BOT). TAV’s investment interests in Pakistan could include airport construction/management – can join hands with STFA to build/operate airports in Pakistan. For their BOT projects, they will work on the basis of 30 percent equity and 70 percent commercial loan. The Prime Minister invited the Group CEO Sani Sener to visit Pakistan early. He apprised him of the potential of a new airport in Islamabad for which land is being acquired. He also mentioned possibility of construction of other airports or upgradation of existing ones.