Policies

Scheme for Financing Renewable Projects - soft loans

Source: JOIN IEA/IRENA Policy and Measures Database
Last updated: 29 November 2016

The scheme provides concessional financing for large and small scale renewable energy projects including solar, wind, hydro, biogas, bio-fuels, bagasse cogeneration and geothermal. 

Ficing is provided on a first come first served basis for projects achieving financial closure up-to June 30, 2019. The State Bank shall provide refice to each bank/ Development Finance Institutions (DFIs) on service charge (mark-up) basis.

Projects between 1 MW and 50MW:

  • Ficing will be available to developers who have completed prescribed requirements of Alternative Energy Development Board (AEDB) and other relevant Government Departments
  • State Bank of Pakistan will provided a maximum refice of PKR 6 billion (USD 57.3 milion) to the banks/DFIs for a single project.
  • Service charges and rates for end users have been fixed as per the following:
    • Tenor: up to 12 years
    • Rate of Refice: 2%
    • Bank’s/DFIs’ Spread: 4%
    • End User’s Rate: 6%

Projects between 0.004 MW to 1 MW

  • Ficing will be available to developers who have completed prescribed requirements of Alternative Energy Development Board (AEDB) and other relevant Government Departments
  • Service charges and rates for end users have been fixed as per the following:
    • Tenor: up to 10 years
    • Rate of Refice: 2%
    • Bank’s/DFIs’ Spread: 4%
    • End User’s Rate: 6%

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