US Ambassador to Pakistan Richard Olson inked the deal for a ten-year loan to Sapphire Wind Power Company.
Under the agreement, US' Overseas Private Investment Corporation (OPIC) will extend $95 million to build the 50 MW wind power plant in the Ghoro-Keti Bandar wind corridor near Jhimpir in Sindh.
"The provision of clean and reliable electricity is an essential building block for any economy," Olson said.
"This project affirms OPIC's commitment to support efforts by Pakistan to diversify energy production to include important contributions from renewable energy sources, and demonstrates the US' continued commitment to strengthening Pakistan's economy, and with it, the prosperity of its citizens," a statement released by the US Embassy here said.
The 50-megawatt wind power plant in southeastern Pakistan's Ghoro-Keti Bandar wind corridor will use 33 General Electric (GE) turbines and is designed to generate 133 gigawatt hours of emission-free electricity annually.
The statement said US and Pakistan work closely together on projects designed to diversify Pakistan's power generation beyond reliance on high-priced fuel oil and tap Pakistan's vast renewable energy potential.
According to a study funded by the US National Renewable Energy Laboratory, the US Agency for International Development estimates that Pakistan possesses 132,000 MW of potential installed wind capacity - virtually equal to the world's entire installed wind capacity in 2010.
OPIC has invested in 123 projects in Pakistan since 1975. Its current Pakistan portfolio includes 14 active projects worth nearly $300 million in key industries including energy, health care, financial services for small and medium-sized enterprises, and telecommunications.
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