ISLAMABAD, July 31: A Washington-based company has offered to invest around $1.5 billion in Pakistan’s three hydel power projects providing an overall tariff range between 2 cents to 4.5 cents per unit.

Sources in the Ministry of Water and Power told Dawn that Synergics Hydro Asia, a Subsidiary of Voith Hydro, has made offers to undertake 740-mw Kohala Power Project in Azad Kashmir on river Jhelum, 84-mw Matiltan Power Project in river Ushu near Kalam in NWFP and refurbishment of four units of Tarbela Dam.

These sources said the ministry would take the three projects to the Economic Coordination Committee (ECC) of the cabinet for consideration because the country was again heading towards power shortages. The three projects are likely to be implemented in a period of three to four years.

The company has completed feasibility studies of the Kohala Power Project and Matiltan Power Project. The ECC would ask Wapda to explain as to why these projects were being delayed, the sources said.

In a letter to secretary Water and Power, the company has said that at least 100-mw additional power could be generated from Tarbela dam at a cost of 2-2.5 cents per unit without disrupting any operational activities at site.

The company said it could undertake to finance the study of the project at its own risk and cost and then launch the whole rehabilitation plan through its own resources and was even ready to associate Wapda as a joint venture partner in the project.

The company said it had earlier approached Wapda but its offer was not acknowledged. “Latest technology is being utilised for rehabilitation of installed old power units throughout the world. However, it remains a mystery as to why Wapda is avoiding to introduce this system in Pakistan,” the company said.

The US company was of the view that if this process was undertaken throughout Pakistan, it would result in availability of 500-600 mw of additional power at 2 to 2.5 cents per unit.

The proposed Kohala power project would be located at river Jhelum downstream of Azad Kashmir’s capital city Muzaffarabad. It would be a run-of-the river project with a generation capacity of 740-mw power. The project can generate power for around 40 years without any additional investment.

Its total cost is estimated at $1.2 billion and offered a levellized tariff of 4.5 cents per unit and the government would have the right under the power policy to take it over after 25 years of operation. The feasibility study of the project was completed two years ago.

Matiltan hydropower project is proposed to be set up on river Ushu, a tributary of Swat river near Kalam in the NWFP. Its feasibility study is also complete and offers around 4.57 cents per unit tariff on a levellized basis for 25 years.