IFC considers financing Hulpur hydropower project

The International Financing Corporation (IFC) is considering financing the 102 MW Hulpur hydropower project in Pakistan.

The project site is approximately 167 km from Islamabad and 28 km upstream of the Mangla Dam Reservoir. The project site is situated on the Poonch river, approximately 11 km downstream of Kotli town and 6 km downstream of the confluence with the Bann Nullah river.

The project consists of the construction, operation and maintenance of a greenfield, 102 MW run-of-the-river hydro power plant under a Build-Own-Operate-Transfer (BOOT) scheme. The project will sell all of its electricity to the National Transmission and Despatch Company of Pakistan under a 30-year power purchase agreement (PPA).

The total project cost is estimated at approximately US$365 million (including contingencies).

The proposed IFC investment consists of up to US$60 million A loan for IFC’s own account, up to US$45 million from IFC acting in its capacity as implementing entity for the Managed Co-Lending Portfolio Program and additional mobilization of up to US$25 million through an IFC B Loan/Parallel Loan.

The project is being developed by Mira Power Limited, a special purpose company, incorporated in Pakistan. Korea South East Power Company Limited (KOSEP), a wholly-owned subsidiary of Korea Electric Power Corporation (KEPCO), owns 76% of the shares in the Company. The remaining ownership will be as follows: 18% by Daelim Industrial Co. Ltd and 6% by Lotte Engineering and Construction Co. Ltd. (Lotte E&C).

The new facilities aims to increase Pakistan's power generation capacity and contribute to reducing the country's power shortage situation. It also expects to promote increased private sector participation in the Pakistan hydropower sector.