South Korean Company to set up 147 MW hydro plant

ISLAMABAD: A South Korean Company M/s Star Hydro Limited has showed its willingness to set up 147MW power project with an estimated cost of $ 400 million on river Kunhar.

This was agreed at a meeting of Waqar Ahmad Khan, Chief Executive Officer, M/s Star Hydro Power Limited (SHPL) alongwith three members delegation of K-Water was held with Saleem H. Mandviwala, MOS / Chairman, BOI in order to discuss / explore the available opportunities in hydropower sector of Pakistan.

The delegation members of Star Hydro Power Limited intimated that they are setting up a 147 MW, run of the river Patrnid Hydropower Project as an IPP, on river Kunhar. The total cost of the project is about USD 400 million. The Korean sponsors will contribute 25% of the cost, while 75% will be financed by banks, including Export Import Bank of Korea, Asian Development Bank, International Finance Corporation and Islamic Development Bank. This will be one time largest FDI by the government of Korea.

This project will be completed within about 4 years from date of commencement of major construction after financial close. This project will be operated and maintained for 30 years by K-Water one of the shareholder of SHPL. After 30 years of operation, the Project will be handed over to the Government of AJ&K without any cost.

In this regard, the company appreciated the facilitation provided by Board of Investment & also both of the Government of KPK and AJK which are very supportive, however, they requested to expedite the land acquisition process for the project.

Chairman, BOI and Secretary assured them for full support and smooth implementation of the project. They also directed to arrange a meeting in the next week, with the Prime Minister of AJ&K, including Chief Secretary, Deputy Commissioner and all stake holders of AJ&K for quick land acquisition & commissioning of their hydropower project.

The delegation appreciated the efforts and support of MOS /Chairman, BOI. 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. He assured to extend all possible assistance / support required to them as and when needed.

Leave a Reply