South Korea to bring $100 foreign direct investment in Pakistan’s energy sector

ISLAMABAD: The South Korean government is to bring in $100 million foreign direct investment (FDI) in Pakistan’s energy sector and expressed interest to build 147 megawatts run of the river Patrnid hydropower project as an independent power producer on River Kunhar in Khyber-Pakhtunkhwa and requested the Pakistani government to expedite land acquisition process for the project, a statement said.

The total cost of the project is around $400 million and the Korean firm Star Hydro Power Limited (SHPL) will sponsor a contribution of 25 percent ($100 million) of the cost, while the remaining 75 percent will be financed by banks, including Export Import Bank of Korea, the Asian Development Bank (ADB), International Finance Corporation (IFC) and the Islamic Development Bank (IDB), it said.

The project will be completed within four years from the date of commencement of major construction after financial close, it said.

In a meeting here with Board of Investment (BoI) Chairman Saleem H Mandviwala, Chief Executive Officer of SHPL, Waqar Ahmad Khan, along with three-member delegation of K-Water said that they are setting up 147MW, run of the river Patrnid hydropower project as an IPP on River Kunhar.

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