Summary Pakistan and Azad Jammu & Kashmir (AJK)’s first private IPP has started its commercial operations.
ISLAMABAD (Online): Pakistan and Azad Jammu & Kashmir (AJK)’s first private Independent Power Producer (IPP) the 84MW New Bong Hydropower Project has started its commercial operations.
The project will contribute 540 GWh of green energy annually into the National Grid under a 25 year Power Purchase Agreement (PPA) with National Transmission and Dispatch Company (NTDC).
Speaking at the occasion Zafar Iqbal Sobani – CEO, Hubco said, “This project will provide cheaper electricity and energy security to the country. Other benefits of the run-of-the river NBE HPP include replacement of some 135,000 tons of oil import valued in excess of US$ 100 million per annum and reduction in carbon emissions”.
The project was scheduled to be completed in 42 months, but was completed 2 months earlier; comparing three similar low-head hydropower projects on the Ohio River, USA totalling 191MW started a year before NBE but still have a year to commercial operations.
The Asian Development Bank and other lending banks, multilaterals IDB, IFC and Proparco France and two domestic commercial banks NBP and HBL played a very pro-active and constructive role in structuring the project and finance documents thus making this pioneering project a reality.
