Norwegian Ambassador to Pakistan recently registered a complaint to the Ministry of Foreign Affairs against the discrimination towards Norwegian company, reported Business Recorder.
The ambassador forwarded a letter of the Country Manager of Scatec ASA to Prime Minister Imran Khan, highlighting the problems being faced by the company in the operationalization of MoU on financial closure with Nizam Energy.
The MoU was signed in February 2021 after strenuous efforts spanning several years, the letter from the Additional Secretary of Europe revealed. The letter further read that the Government of Sindh had failed to honor the previous agreement that was signed in September 2017 with the company. The MoU had stated that Scatec would set up three 50 Mega Watt (MW) power plants, which would bring in an investment of $100 million into the country.
The letter further pointed out that if the projects were realized, Scatec would become the second biggest Norwegian investor after Telenor, whereas the failure of the implementation would result in discouragement among Norwegian investors.
This matter has also been presented in front of the President, Arif Alvi.
The Norwegian company, working along with Nizam Energy since 2014, has developed plans for 3 plants producing a total of 150 MW in Sukkur. After six years, the projects reached a financial close when FMO, a Dutch development bank, Faysal Bank of Punjab, and Pak-Kuwait Investment signed credit agreements for non-recourse debt financing of the projects.
The company has agreed to provide asset management as well as operation and maintenance.
The Norwegian company will hold 75 percent equity, whereas the rest 25 percent will lie with Nizam Energy for the three projects.
