Power projects: Nawaz to inaugurate Pakistan’s first hydropower IPP

Published: July 15, 2013
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Prime Minister Nawaz Sharif. PHOTO: FILE

Prime Minister Nawaz Sharif. PHOTO: FILE

KARACHI / LAHORE: 

Prime Minister Muhammad Nawaz Sharif is scheduled to inaugurate Pakistan’s first private hydropower plant in Azad Jammu and Kashmir on Monday. The IPP, Laraib Energy Ltd.,a subsidiary of Hub Power Company (Hubco) is being commissioned two months before schedule.

The 84 MW New Bong Escape Hydropower Project would replace approximately 135,000 tons of oil imports valued in excess of $100 million per annum. The New Bong Hydropower Escape Project will contribute 540 GWh of green energy annually into the national grid under a 25 year PPA with National Transmission and Despatch Company (NTDC.)

The project has the distinction of being Pakistan’s first hydropower project to be registered with the United Nations’ Framework Convention on Climate Change as a Clean Mechanism Development (CDM) Project, and has made solid contributions in offsetting green house emissions globally.

One of the biggest issues of the power sector in Pakistan is expensive power generation, and the inauguration of the country’s first private sector hydro IPP by Laraib Energy has paved the way for private sector investment in hydropower projects for producing cheap electricity.

As per official estimates, Pakistan has a potential of 100,000MW of hydel power generation. However, only about 6,500 MW of this potential has been harnessed so far.

Published in The Express Tribune, July 15th, 2013.

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Reader Comments (15)

  • Hataf Shahab
    Jul 15, 2013 - 9:31AM

    Its just so sad. PPPP started projects and approved them, enabled the projects. And Nawaz Sharif is taking the undeserved credit. Tragedy

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  • Sane Voice
    Jul 15, 2013 - 10:38AM

    @Hataf Shahab:

    What can be done about the mentality where one cannot think beyond what you are thinking…………..

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  • khan
    Jul 15, 2013 - 11:02AM

    ppp did nothing for the people of pakistan instead damaged the economy. they could change the pakistan in five years.
    nawaz sharif will inshalla change pakistan

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  • BetelQ8
    Jul 15, 2013 - 11:09AM

    Same old mentality. Why he has to spend millions just to cut the ribbon. Or is it to replace the plate on foundation stone by some personality of previous regime?

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  • Jul 15, 2013 - 11:53AM

    @Hataf Shahab: Haaahh! From where did you get this figment? The importance of this project is that it will save USD.100 million in FURNACE OIL IMPORTS and is a hydel power project. Viva! Salams

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  • Sane Human Being
    Jul 15, 2013 - 11:56AM

    @Hataf Shahab:

    We all need to get over the “who did what and who did not part” of politics. Your daily life does not need to revolve around politics. Be happy, you’re getting cheap (yes hydel is cheap), clean, carbon-free energy, that will reduce the amount of load-shedding you and others will face in future.

    It doesn’t matter if it was approved by one and inaugurated by another. That happens everywhere in the world. When one person takes over another’s job he picks off from where he left, he does not change the way the job is done. And seriously Pakistan needs that.

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  • Khan
    Jul 15, 2013 - 12:30PM

    the project was completed on March 23, 2013 and started generation…However inauguration ceremony is now taking place.

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  • Namaloom Afraad
    Jul 15, 2013 - 1:01PM

    And hello – has any one read the Power Purchase Agreement? They are charging Rs8.5 per unit. Can you believe it??? State owned hydel generation costs Rs 0.5 per unit. This is 16 times more expensive to the comparable fuel – this is even more expensive than gas based generation. What a sham

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  • Aamer Khawaja
    Jul 15, 2013 - 5:03PM

    @Namaloom Afraad:
    Gas generation comes to Rs.12/unit, Furnace comes to Rs.18/unit
    Hydel Costs 1-2Rs. for Mega Dams, not these small run off the river dams

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  • Red Dawn
    Jul 15, 2013 - 5:49PM

    Nmaloom Afraad is rite here. The cost of hydel isnt this high. Got to see who had the ownership of this IPP. That is ridiculous.

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  • A. Khan
    Jul 15, 2013 - 7:04PM

    @Namaloom Afraad: All thanks to PPP. And the previous agreement between them and IPP’s really screwed the country. Yes, a great “People’s” party.

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  • Khadim Karrar
    Jul 15, 2013 - 10:03PM

    Hubco is the same company that got a contract during the first BB government for about Rs. 5.00 per unit when the tariff for domestic electricity in Karachi was forty paisas per unit. Fishy.
    The IPP were given contracts on build operate transfer (BOT) basis for ten years. That is they were contracted to hand over these project to indigenous sources within ten years. I hear that they have bribed their way to prolong then years to thirty years. Can someone with evidence confirm?

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  • Peace Lover
    Jul 16, 2013 - 12:58AM

    Are not the IPPs a cause of very expensive electric power which leads to unbearable circular debt which leads to nonpayment of dues which leads to persistent power outages?
    Mir kya sada hein beemar ho aye jis kay sabab
    Us hee attar kay londay say dawa laytay hein

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  • Hataf Shahab
    Jul 16, 2013 - 8:47AM

    The fact is that you guys cant give credit where it should be due.

    This project started under the PPP regime in 2010. If PPP did nothing this project wouldnt have been inaugratd by Nawaz Sharif. I wanted to clear this that PPP did infact enable this project so get over it.

    Yes, i will give credit to anyone who does a good job. Pakistan needs this!Recommend

  • Peace Seeker
    Jul 17, 2013 - 10:21PM

    @Khadim Karrar:
    If kickbacks were involved, where did the money go? Surrey mahal?

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