IFC to invest $50 million in Gulpur Hydropower Project
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ISLAMABAD: The International Finance Corporation (IFC) has announced an investment of $50 million in 102MW Gulpur Hydropower Project and mobilising a further $72m for the project to address Pakistan’s power shortage, support lower cost energy generation, and help develop renewable energy sources.
The $365.1m project involves construction and operation of a run-of-the-river hydroelectric power generation facility on Poonch River, some 28km upstream from Mangla, the country’s second largest water storage reservoir.
The Asian Development Bank (ADB) is already supporting the project in line with the country partnership strategy for Pakistan and will help the bank meet its commitment to undertake clean energy investments of $2 billion per year.
Gulpur Hydropower Project, developed by Mira Power Limited, is a subsidiary of Korea South East Power Company (KOSEP) of South Korea.
“This is KOSEP’s first power generation project in Pakistan. This investment will help us utilise Pakistan’s significant hydropower resource and help address the energy crisis in a cost-effective and environment-friendly way,” Korea South
East Power Company General Manager Yi Bo Seuk said.
IFC Regional Industry Head for Infrastructure, Europe, Middle East and North Africa, Wiebke Schloemer said: “Our aim is to help address Pakistan’s power shortage by supporting the development of renewable energy resources that will reduce the country’s reliance on more expensive fuel imports for power generation.
“We also hope to encourage other international investors to invest in Pakistan’s power sector.”
The project will provide low-cost generation and additional electricity supply to the national grid of 465 Gigawatt hours per year.
It will generate electricity by using indigenous water resources, and the tariff for electricity supplied by the project will be lower.
The project will also avoid greenhouse gas emissions of almost 240,000 tonnes of carbon dioxide per year.
Published in Dawn, June 10th, 2015
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