Prime minister will inagurate Pakistan’s first private hydel plant

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Prime Minister Nawaz Sharif will inaugurate Pakistan’s first private hydel power project near Mangla Dam in Azad Kashmir today.

The 84MW hydropower project is expected to provide electricity to WAPDA at about Rs8.7 per kwh, compared to average thermal generation cost in excess of Rs18 per unit.

The commercial production at the project is estimated to save about 135,000 tons of imported oil costing over $100 million per annum.

It will provide 540 GWh of green energy per year to the national grid under a 25-year power purchase agreement with the National Transmission and Dispatch Company.

Laraib Energy Ltd, a private company taken over by the Hub Power Company (Hubco) a couple of years ago, commissioned the plant two months ahead of its schedule of 42 months.

Interestingly, Hubco was the first to establish a 1,292MW private thermal power plant in Balochistan and the company is now planning to convert it to coal under an agreement with the government to provide cheaper energy to reduce dependence on imported oil.

One of the biggest issues of the power sector is expensive power generation, and the inauguration of private sector hydel project by Laraib has paved the way for private investment in the sector.

It is also Pakistan’s first hydropower plant to be registered with the United Nations’ Framework Convention on Climate Change as a clean mechanism development project, and has made solid contribution in offsetting greenhouse emission globally.

The Asian Development Bank and other lending agencies, multilateral IDB, IFC and Proparco France and two domestic commercial banks, NBP and HBL, played a constructive role in structuring the project and finance documents.

The successful completion of the county’s first independent hydropower project by a private investor, in record time, has given hope for harnessing the vast potential of the water sector.

As per official estimates, Pakistan has a potential to generate 100,000MW of hydel power. But only about 6,500MW of the potential has been harnessed so far.

20 COMMENTS

  1. First very small step towards solving load shedding problem . Long ways to go. It took a private party to bring this plant in service. Do not expect Nawaz Sherief to help out.

  2. The chineese proverb is journey of a thousand miles starts from a single step.
    This small step hopefully solve our problems.

  3. Its just so sad. PPPP started projects and approved them, enabled the projects. And Nawaz Sharif is taking the undeserved credit. Tragedy. And hello – has any one read the Power Purchase Agreement? They are charging Rs8.5 per unit. Can you believe it??? State owned hydel generation costs Rs 0.5 per unit. This is 16 times more expensive to the comparable fuel – this is even more expensive than gas based generation. What a sham.

  4. Well begun is half done!
    MashaAllah the PMLN Government is moving in the right direction in resolving the decade-long energy crisis full of shady deals by the dictator Musharraf and then his NRO-protege' Zardari.
    We are happy that our motherland is now in safe hands.
    Long Live PMLN, Long Live Pakistan!

    • Mother land in safe hands . The same hands who were deeply engaged in money laundering , non payment of taxes, corruption and extensive load shedding. Also high unemployment and how about the prevailing drone attacks and illeteracy. Do yourself a favor, next time stay away from PMLN and vote for IMRAN KHAN, Mr. CLEAN

    • Masha Allah PMLN has corrupted 120 billions out 350 billion paid to circular debts. NandiPur project escalated to 57 billion from 22 billion. Rupee went down. Prices went up by 40% Masha Allah

  5. Nawaz Sharif gets the credit of this project PPP is party of so many faces their objectives differ from those who really worry for Pakistan and its people though Nawaz Sharif is not getting much commended from me. He has done lot of damage to Pakistani economy being a friendly opposition for almost three years Funds were taken out of the treasury and he did not say anything and kept quiet Very sad on the part of Nawaz Sharif God is watching what he did to poor people of Pakistan He will pay sooner or later.

    • becoz nawaz himself stolen billions from treasury during his last three stints in power in centre and Punjab.

  6. I think Nawaz Sharif will use his ‎پد‎ to provide energy to hydel plant.

  7. Love you Nawaz Sharif. Move on we will support you whenever you are on costructive route.

    • Great. get ready for continued money laundering, corruption, 18 hours of load shedding, continued unemployment, high illeteracy , continued devaluation of ruppees and rule by sherief khan folks.

    • Move oon Nawaz rupee is going down, 350 billions paid to IPPs and 120 billions corrupted out of it. Move on.

  8. why did you guys not vote for Imran Khan. I think it could be because many Pakistanis are attracted to donkeys as reported by Google! Pakistanis are cursed that's why you didn't vote for change. You reap what you sow!

  9. The citizens are watching the moves of the establishment how the top positions goes …

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