Pakistan aims to build $1.51bn dam in PoK by 2022
According to a media report, Pakistan is planning on setting up a 700 MW hydro power project in Pakistan-occupied Kashmir (PoK) by 2022. The $1.51 billion Azad Pattan Hydropower Project (APHP) will be constructed at the Sudhanoti district in PoK on the Jhelum river, merely 90 km from Islamabad. The project is estimated to be completed by 2022. Read on to know more.
Is Pakistan looking at hydropower to solve its energy crisis?
Hydro power reportedly contributes to 28% of Pakistan's total energy mix. Reportedly, the country has only been able to tap into 12% of its abundant hydel resources so far. "The Azad Pattan project adds much-needed capacity to the inventory of hydel projects in the country and will generate 3,258 GWh, around 3 per cent of the country's annual generation," official documents state.
What do we know about the project?
According to the report that appeared in The Express Tribune, "The project is being developed in the private sector under the Policy for Power Generation 2002." Pakistan's National Electric Power Authority (NEPRA) reveals that the project financing includes 75% debt, including from foreign sources and 25% equity. The debt repayment period extends to about 18 years including a 6-year grace period.
What next?
Pakistan's Central Power Purchasing Agency (CPPA-G) has already proposed to import electricity from the project at a tariff of Rs. 8.50/unit. NEPRA will reportedly conduct a hearing in Islamabad on the matter on January 11, 2018.
