Hydropower project: South Korea announces largest investment yet

Korean sponsors will contribute 25% of total $400m cost.

ISLAMABAD: A South Korea company on Thursday announced that it would contribute in setting up the 147MW Patrind Hydropower Project on river Kunhar costing around $400 million, making it the largest foreign direct investment from the Far Eastern country.

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.

A meeting was held between Star Hydro Power Limited (SHPL) Chief Executive Officer Waqar Ahmad Khan, a three-member delegation of Korea Water Resources Corp and Board of Investment (BOI) Chairman Saleem Mandviwalla to explore opportunities in Pakistan’s hydropower sector.

This project is expected to be completed in four years from the date of commencement of major construction which will be initiated after finalisation of documents.

This project will be operated and maintained for 30 years by Korea Water Resources Corp, 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.

The company appreciated the facilitation provided by the board of investment, however, requested to expedite the land acquisition process for the project.

BOI Chairman assured them of full support and smooth implementation of the project. The chairman also directed concerned official to arrange a meeting 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.

Published in The Express Tribune, January 13^th, 2012.