News / Press Releases

ABD Lends $65 Million to Private Hydropower Projects in Pakistan

Monday, August 17, 2015

Asian Development Bank is providing loan assistance of up to $65 million for a new private sector hydropower project in Pakistan, through which the country will drive to overcome power shortages and will strengthen its energy security. The loan will go to Mira Power Ltd, a special purpose company controlled by three republic of Korea.

M. Azim Hashmi, Investment specialist in ABD’s private sector operation department 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”.

Hydropower is the cheapest source of electricity on per unit cost compared to all other alternatives. The project will be carried out on a build own operate transfer basis over 30 years. The new facility will provide additional installed generating capacity of 102 megawatts, equivalent to almost 2 percent of the current power shortfall in the country. By substituting fossil fuel-driven electricity, it will help Pakistan avoid greenhouse gas emissions of nearly 254,000 tons of carbon dioxide equivalent a year.

ADB has been a pioneer in the development of private sector clean power projects in Pakistan, financing the first two hydropower and first three wind power projects in the country. Other project loan assistance will be provided by Export-Import Bank of Korea, the International Finance Corporation and its parallel co-financiers, for a total investment cost of over $367 million. The project will be carried out over 55 months, with expected completion in March 2019.

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