Netherland to invest $1.3bn in Bundle Island
Aftab Ahmed
A Netherland based firm AWECT will invest $ 1.3 billion in the renewable energy component of the first smart city project of Bundle Island.
Sources told News Today that the federal government is conducting different studies to develop Pakistan’s first small city project at Bundle Island.
The core objective of technical studies lies with the complete master planning of the area after detailed studies to ensure that the area’s ecosystem remains intact. Thus, Pakistan Island Development Authority invited several groups through advertisements to conduct studies to develop Bundle Island.
The process of evaluation is in progress. So far, 11 groups have applied for master planning, whereas nine groups have applied for Environmental Studies.
The CSR strategy would include registration/affiliations with Environmental International Organizations (LEAD USGBC, IUCN) and partnership with Identified local NGOs for specific environmental, climate change, and fishers welfare programs. An Environment & Fishermen Welfare Fund would be established alongside MNCs partnering and donations from their CSR Funds.
The goal is to encourage sustainable and planned projects for related communities and the environment. The authority will publish advertisements in the newspapers for INGOs, NGOs, to become partners on multiple programs it will fund.
Initial funding for several programs would be made through companies’ CSR funds, managed by PIDA. After the establishment, a part of profits would go to these funds and the projects.
This fund’s establishment would accelerate and facilitate local and foreign direct investment in Pakistan’s smart cities. It would fill the financing-need gaps across the entire value chain. Moreover, it would enable the projects to access alternative financing modes other than what is available in the local market, making it possible for projects to reach financial close faster.
This would develop a one-of-its-kind financing source/(arm) for PIDA, RUDA, and the Industry. The project seems to be completely sustainable, both technically and financially. The government will not take loans for this project, and all funding would be through equity and project finance strategy to support the economy.
The project would also be exploring more International ventures for hospitality, entertainment, and commercial companies.
Moreover, the authority has completed the registration and affiliation of USGBC LEED for Pakistan’s first smart city. It advertised for technical studies and targeted the consultants to initiate studies by 31st December 2020.
Moreover, ANGCC will arrange hedge funding NGOs and other organizations to manage CSR programs for environmental and fishermen’s welfare funds. An effective communication strategy will take place to educate the people and attract international investment.
Read Govt seeks services of firms for Islands City.
The Cabinet members complemented both the Authorities. They expressed satisfaction that the two projects will open unprecedented opportunities for attracting foreign investment.
Commenting on the lukewarm response from Sindh Government, the Prime Minister reiterated that the Bundle Island project would go a long way in ameliorating the local fishermen’s plight. It will also open new and sustainable business avenues for them, the premier hoped.
