PRIVATE POWER & INFRASTRUCTURE BOARD

 

GOVERNMENT OF PAKISTAN

MINISTRY OF WATER & POWER

   
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LARGEST HYDRO IPP ACHIEVES FINANCIAL CLOSE

09-JAN-2017

ISLAMABAD, 9th January 2017: With the efforts and facilitation of Private Power and Infrastructure Board (PPIB), Pakistan has achieved another landmark by declaring Financial Close of first hydro IPP under the framework of China-Pakistan Economic Corridor (CPEC). 870 MW Suki Kinari Hydropower Project achieved Financial Close after fulfilling mandatory prerequisites. The documents have been executed by Mr. Shah Jahan Mirza, Managing Director, PPIB and Mr. Haseeb Khan, Chief Executive of Suki Kinari Hydropower Project. The Honorable Federal Minister for Water & Power Khawaja Muhammad Asif who is also the Chairman of PPIB graced the occasion at a formal ceremony held at the Ministry of Water & Power today.

This is the first hydro power project in Khyber Pakhtunkhwa Province being developed by the private sector and so far the largest hydro IPP in Pakistan. The construction activities at the site of project have already commenced and the project is expected to start injecting 3081 GWh million clean, reliable and affordable units of electricity each year to the national grid by 2022. Further, the Government of Khyber Pakhtunkhwa will also receive a significant amount of Rs. 1.3 Billion per annum as water use charges, while after thirty (30) years of operations on Build-Own-Operate-Transfer (BOOT) basis under the Power Policy 2002, the Project will be transferred to the Government of Khyber Pakhtunkhwa at a notional price of Rs. 1. 

Suki Kinari Project is located on River Kunhar, a tributary of River Jhelum, District Mansehra, in the eastern part of Khyber Pakhtunkhwa between Naran and Paras towns. Khyber Pakhtunkhwa. M/s Al-Jomaih Holding Company, (LLC) (Saudi Arabia), China Gezhouba Group Company (China) and Haseeb Khan (Pvt) Ltd. (Pakistan) are Sponsors of the Project. Suki Kinari Project is being developed with an investment outlay of US$ 1800 Million through Debt Equity ratio of 75:25%. The lenders for the Project include Export-Import Bank of China, and Industrial and Commercial Bank of China (ICBC)..

Minister for Water and Power stated that this latest development reflects GoP's pledge to make CPEC a foundation for eliminating load-shedding and achieving self-reliance through generating clean and affordable electricity in the country. Setting up of hydro power projects will improve energy mix in the country and reduce dependence on imported fuel resulting into saving of millions of dollars of precious foreign exchange annually. The establishment of this project will also be instrumental in generating economic activities as well as creating employment opportunities for the people of the areas in particular and will also entail improvement of the basic infrastructure in the vicinity which will be helpful in the poverty alleviation of the people. 

           

 

 

 
 
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