The Governent of Pakistan has announced the financial close of the Suki Kinari hydropower project, which is the first hydro IPP under China-Pakistan Economic Corridor (CPEC) framework.
Suki Kinari Hydropower plant will feature an installed capacity of 870 MW and will be developmed in scenic Kaghan in Manshera District. This is the first hydro power project in Khyber Pakhtunkhwa province being developed by the private sector and so far the largest hydro Independent Power Producer (IPP) in Pakistan.
The project investment is estimated at US$1.8 billion, with a debt/equity ratio of 75:25. The lenders for the project include Export-Import Bank of China, and Industrial and Commercial Bank of China (ICBC).
The project sponsors include Al-Jomaih Holding Company, (LLC) (Saudi Arabia), China Gezhouba Group Company (China) and Haseeb Khan Limited (Pakistan) are sponsors of the project.
The construction activities at the site of the project had already commenced and the project was expected to start injecting 3,081 GWh million clean, reliable and affordable units of electricity each year to the national grid by 2022.
Further, the Government of Khyber Pakhtunkhwa will also receive a significant amount of PKR1.3 billion (US$12.3 million) per annum as water use charges, while after 30 years of operations on Build-Own-Operate-Transfer (BOOT) basis under the Power Policy 2002, the project will be transferred to the Government of Khyber Pakhtunkhwa at a notional price of PKR1 (US$0.01).