Pakistan closes $1.8 billion deal for Suki Kinari hydropower project
Being built by SK Hydro and Industrial & Commercial Bank of China, the $1.8 billion project is expected to commence power generation by 2022. The project is expected to generate 3081GWh of electricity each year.
The hydro facility is located on River Kunhar, a tributary of River Jhelum, District Mansehra, in the eastern part of Khyber Pakhtunkhwa between Naran and Paras towns.
Construction on the project, which is said to be the first hydro independent power project (IPP) under the framework of China-Pakistan Economic Corridor (CPEC), has already commenced.
Following completion of 30 years of operations, the project will be handed over to the Khyber Pakhtunkhwa government.
The project’s lenders include Export-Import Bank of China, and Industrial and Commercial Bank of China (ICBC).
Power generated from the project will be sold to National Transmission & Despatch Company (NTDC), under long term power purchase agreement signed earlier.
The sponsors of the project include Saudi Arabia’s Al-Jomaih Holding Company, China Gezhouba Group Company and Pakistan’s Haseeb Khan.
In April 2015, SK Hydro signed an agreement with Export-Import Bank of China and Industrial and Commerce Bank of China (ICBC) for 75% of financing costs of the project. ■