PAKISTAN SHORES UP POWER SUPPLY THRU HYDRO
Erle Frayne D. Argonza
Pakistan is undergoing a shortage of power supply estimated at 4200 megawatts. Huge enough to dampen production at industrial sites and agro estates, the power shortage must be addressed the quickest as Pakistan’s growth is moving up.
An emerging market as per definition by development agencies, Pakistan cannot afford to be lackadaisical about addressing power supply problems. It has to first of all re-tool and re-fix its policy environment so as to diversify power sources to green energy that includes hydro power, ocean power, solar energy, wind power, geothermal, and biofuels.
Below is a nice news update about addressing the power problem via hydro, culled from the ADB media bureau.
[Philippines, 29 October 2011]
New Pakistan Hydro Plant to Ease Nationwide Power Shortages
11 October 2011
MANILA, PHILIPPINES – The Asian Development Bank (ADB) will provide $97 million to help fund a new private sector hydroelectricity plant in Pakistan, which will ease power shortages and create thousands of new jobs.
“Shops and factories across Pakistan are having to scale back operations because of electricity shortages,” said Takeo Koike, Principal Investment Specialist of ADB’s Private Sector Operations Department. “This new, renewable energy generating plant will power businesses and light homes across the country.”
Pakistan has an acute shortage of power, estimated at over 4,200 MW during peak demand, which has led to worsening brownouts and blackouts across the country, necessitating power rationing.
Most of Pakistan’s energy is generated from imported oil, putting a severe strain on the country’s finances as global oil prices rise and the local currency depreciates.
The ADB Board of Directors’ approval of the $97 million loan for the 147-megawatt (MW) run-of-the-river Patrind hydropower plant, between the Kunhar and Jhelum rivers near Muzaffarabad, will help mitigate power shortages and diversify Pakistan’s energy mix.
The loan is being provided to Star Hydro Power Limited, which is jointly owned by Korea Water Resources Corporation (K-water), along with Daewoo Engineering and Construction Company and Sambu Construction Company, which are both listed on the Korea Stock Exchange.
The project marks the first investment in Pakistan’s power sector by a consortium of companies from the Republic of Korea.
The independent power producer (IPP) – which will revert to government ownership after 30 years – is expected to create 2,700 local jobs and generate over $240 million from purchases of local goods and services. It will also avoid about 280,000 tons of carbon dioxide emissions a year. The plant is expected to be up and running in 2016.
ADB has played a leading role in the development of the power sector in Pakistan, and the financing arrangements for the new plant draw on the experiences of the New Bong Escape Hydropower Project – Pakistan’s first private hydro IPP facility, which was partly financed by ADB.
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