Pakistan’s Private Power and Infrastructure Board (PPIB) has signed an implementation agreement with Laraib Energy Ltd., developer of the 84-MW New Bong Escape project, Pakistan’s first privately financed hydroelectric project.
With the signing September 1, PPIB said New Bong Escape is the first private sector hydro plant to complete the major milestone of finalizing the implementation agreement. The developer achieved financial close July 2, advancing development of the run-of-river project on the Jhelum River in Azad, Jammu and Kashmir State. (HNN 7/5/07)
New Bong Escape is located at the tail of Bong Canal, a major irrigation canal downstream from 1,000-MW Mangla Dam. Upon completion in 2011, it is to sell power to Pakistan’s Water and Power Development Authority and National Transmission and Dispatch Co.
Laraib, a subsidiary of Ranhill Berhad, a Malaysian engineering and utility holding company, completed financing arrangements with the Asian Development Bank (ADB) and Islamic Development Bank (IDB), which are providing US$37.3 million each, and with two Pakistan banks, National Bank of Pakistan and Habib Bank Ltd., which are providing US$23 million each, for a total US$120.6 million.
An additional US$40.2 million in equity funding is to be supplied by Laraib shareholders for a total project cost of US$160.8 million.
Ranhill subsidiary Ranhill Engineering Construction is to be the project’s engineering-procurement-construction contractor. Zhefu of China is to supply four bulb turbine-generators.