The Asian Development Bank (ADB) will provide $65m loan to Mira Power to build $365m Gulpur Hydropower Project in Pakistan.
The project will be built on the Poonch River in Kotli district by Mira Power, a special purpose company owned by three South Korean companies, under on a build-own-operate-transfer basis over 30 years.
Gulpur Hydropower Project will be a 66m concrete gravity dam having a length of 205m, and a spillway having 6 gates (11.5m x 6).
Mira Power has signed a take-or-pay power purchase agreement with state-owned National Transmission and Despatch Company to sell power generated from the 102 MW run-of-river (RoR) hydroelectricity facility.
After completion, the facility will meet almost 2% of the current power shortfall in the country and help Pakistan avoid 254,000t of carbon dioxide equivalent per year.
The project will also help the country reduce its dependency on fossil fuel-based electricity and help in improving its energy security.
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By GlobalDataADB Private Sector Operations Department Investment Specialist Mohammed Azim Hashimi said: "Severe power shortages remain a major constraint on Pakistan’s economy, and scaling up the use of hydropower is essential for meeting demand and reducing the country’s reliance on costly imported fossil fuels for electricity production.
"This project also supports the Government of Pakistan’s policy of tapping the private sector for power industry investment."
There were social and environmental concerns regarding the project which have been addressed by constructing a weir designed that will help prevent flooding and development of fisheries and wildlife conservation plan to protect endangered species.
Mira Power will also receive loan assistance from Export-Import Bank of Korea and International Finance Corporation.
The project will be carried out in 55 months with scheduled completion in March 2019.
In September 2014, Mira Power had awarded $350m contract to WH Global to act as the owner’s engineer for the project.
Mira Power is majority-owned Korea South-East Power, a unit of Korea Electric Power Company while the remaining stake is owned by units of the Daelim Business Conglomerate and Lotte.
