Islamabad: Pakistan has decided to set up a new hydropower project of over 700 megawatts in PaK through foreign financing at an estimated cost of $1.51 billion by 2022, according to a media report.
The Azad Pattan Hydropower Project (APHP) is a run of river scheme located on Jhelum River in the Sudhanoti district of Pakistan-administered Kashmir and about 90 km from Islamabad, the ‘Express Tribune’ reported.
The project would be completed by 2022 for which the authorities have sought an import tariff at Rs 8.05 per kilowatts, the daily said.
“The project (Azad Pattan Hydropower Project) is an initiative of the government of Pakistan being developed in the private sector under the Policy for Power Generation 2002,” the daily said citing the project documents at National Electric Power Regulatory Authority (Nepra).
The Central Power Purchasing Agency (CPPA-G) has proposed a reference levelised tariff of Rs 8.50 per unit (kWh) for import of the electricity from the project under NEPRA Import of Power Regulations, 2017.
Nepra on Friday announced to admit a CPPA-G application for consideration. It would conduct a hearing in the matter on January 11, 2018, at Islamabad.
“The 700.7 MW project adds much-needed capacity to the inventory of hydropower projects in the country and will generate 3,258 GWh, around 3% of the country’s annual generation, the document said.
The estimated cost would be a mix of 75% debt ($1.13 billion) and 25% equity ($379 million). The debt part includes foreign debt, it added.
Debt repayment period has been assumed at 18 years including a six-year grace period.
Hydropower contributes about 16% of global electricity and Pakistan has 28% hydropower in its energy mix, the daily said citing official documents.
Pakistan still has significant unexploited hydel resources of which only about 12% have been developed and made operational, it said.