ADB funds new hydro-electricity plant
The Asian Development Bank (ADB) will provide $97 million to help fund a new private sector hydroelectricity plant in Pakistan, aimed at easing power shortages and creating thousands of new jobs.
“Shops and factories across Pakistan have to scale back operations because of electricity shortages,” said Takeo Koike, Principal Investment Specialist of ADB’S Private Sector Operations Department, “This new renewable energy generating plant will power businesses and light homes across the country.”
The 147-megawatt (MW) run-ofthe-river Patrind hydropower plant, between the Kunhar and Jhelum rivers near Muzaffarabad, will help mitigate power shortages and diversify Pakistan’s energy mix.
The loan is being provided to Star Hydro Power Limited, which is jointly owned by Korea Water Resources Corporation (K-water), along with Daewoo Engineering and Construction Company and Sambu Construction Company, both are listed on the Korea Stock Exchange. The project marks the first investment in Pakistan’s power sector by a consortium of companies from the Republic of Korea.
The independent power producer (IPP), which will revert to government ownership after 30 years, is expected to create 2,700 local jobs and generate over $240 million from purchases of local goods and services. It will also avoid about 280,000 tonnes of carbon dioxide emissions a year. The plant is expected to be up and running by 2016