Consideration of funding proposals – Addendum IV Funding proposal package for SAP024

The Pakistan Distributed Solar Project (PDSP), submitted by JS Bank, aims to increase the adoption of distributed solar PV systems in Pakistan. The project requests USD 10 million from the Green Climate Fund (GCF), consisting of a USD 9 million Pro-Rata Risk Sharing Guarantee and a USD 1 million grant for awareness and capacity building. The project targets the installation of approximately 43.15 MW of solar capacity for 4,000 customers across residential, agricultural, and SME sectors over 10 years. It specifically focuses on reducing collateral requirements and improving financial access for women entrepreneurs and women-led households. The project expects to reduce GHG emissions by 848,700 tCO2eq over a 34-year lifespan.

• The project seeks a total investment of USD 54 million, with USD 10 million requested from the GCF and USD 44 million in co-financing provided as senior loans by JS Bank.
• The GCF funding is split into a USD 9 million Pro-Rata Risk Sharing Guarantee, covering 90% of defaults on a loan-by-loan basis, and a USD 1 million grant for awareness and growth.
• The project aims to install approximately 43.15 MW of distributed rooftop solar power systems for roughly 4,000 customers over a 10-year implementation period.
• The expected mitigation outcome is a total reduction of 848,700 tonnes of CO2 equivalent over the project's estimated 34-year lifespan.
• The project targets three primary customer segments: Residential, Agricultural, and Small & Medium Enterprises (SMEs), with a specific focus on reducing collateral requirements to increase accessibility.
• A key objective is to empower women through the 'Khud Mukhtar' program, offering subsidized solar loans to businesswomen and salaried women at a reduced interest rate of 5%.
• The Independent Technical Advisory Panel (TAP) identified risks regarding the technical expertise of solar vendors and the potential for reputational loss for the bank and GCF if systems underperform.
• The project includes a capacity-building component to train JS Bank staff, solar vendors, and regulators, with a target that 50% of new hires for capacity building be women.
• The project aims to foster a secondary market for solar PV equipment to ensure long-term sustainability and lower the initial investment cost for low-income households.

APA

Green Climate Fund (2022). Consideration of funding proposals – Addendum IV Funding proposal package for SAP024. https://www.greenclimate.fund/sites/default/files/document/gcf-b32-02-add04.pdf

Chicago

Green Climate Fund. Consideration of funding proposals – Addendum IV Funding proposal package for SAP024. 2022. https://www.greenclimate.fund/sites/default/files/document/gcf-b32-02-add04.pdf.

Wikipedia

{{cite report |author=Green Climate Fund |title=Consideration of funding proposals – Addendum IV Funding proposal package for SAP024 |date=25 April 2022 |url=https://www.greenclimate.fund/sites/default/files/document/gcf-b32-02-add04.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greenclimatefund2022consideration, author = {{Green Climate Fund}}, title = {{Consideration of funding proposals – Addendum IV Funding proposal package for SAP024}}, institution = {Green Climate Fund}, year = {2022}, month = apr, url = {https://www.greenclimate.fund/sites/default/files/document/gcf-b32-02-add04.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }