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South Korea to invest in hydropower project on Kunhar

13 January, 2012

ISLAMABAD: South Korea on Thursday announced it would invest in hydropower by setting up a 147 Megawatts (MW) run of the river Patrnid Hydropower Project as an Independent Power Producer (IPP), on river Kunhar.

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ISLAMABAD: South Korea on Thursday announced it would invest in hydropower by setting up a 147 Megawatts (MW) run of the river Patrnid Hydropower Project as an Independent Power Producer (IPP), on river Kunhar.

Meeting of Waqar Ahmad Khan, Chief Executive Officer, M/s Star Hydro Power Limited (SHPL) along with three members delegation of K-Water held a meeting with Saleem H Mandviwalla, Minister of State and Chairman, BoI to explore the available opportunities in hydropower sector of Pakistan.

According to a communiqué issued by BoI, the delegation members of Star Hydro Power Limited intimated that cost of Patrnid Hydropower Project would be about $ 400 million.

The Korean sponsors will contribute 25 percent of the cost, while 75 percent will be financed by banks, including Export Import Bank of Korea, Asian Development Bank, International Finance Corporation and Islamic Development Bank.

It would be single time largest Foreign Direct Investment (FDI) by the government of Korea and project will be completed within about 4 years from date of commencement of major construction after financial closure.

This project will be operated and maintained for 30 years by K-Water, one of the shareholders of SHPL. After 30 years of operation, the project will be handed over to the government of Azad Jammu and Kashmir without any cost. In this regard the company appreciated the facilitation provided by BoI and both of the Governments of KPK and AJK, which are very supportive. However, they requested to expedite the land acquisition process for the project.

Chairman, BOI, Saleem H Mandviwalla and Secretary BoI Munir Qureshi assured them for full support and smooth implementation of the project.

Chairman BoI also directed to arrange a meeting in the next week, with the Prime Minister of AJK, including Chief Secretary, Deputy Commissioner and all stakeholders of AJK for quick land acquisition and commissioning of their hydropower project.

Chairman, BOI thanked the members of the delegation for visiting Pakistan and selected hydropower project, which is the basic needs to resolve the present energy crises in the country.

End.


 
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