One of the largest private sector hydropower projects in Pakistan – the 870MW Suki Kinari project – has reached a major milestone with news that the project has achieved financial close this week.

The News in Pakistan reported that PPIB Managing Director Shah Jahan Mirza and Suki Kinari hydropower project Chief Executive Haseeb Khan signed the documents marking financial close on Monday, in a formal ceremony attended by Federal minister for water and power Khwaja Muhammad Asif.

The $1.8 billion project is the first hydropower project to be developed by the private sector in Khyber Pakhtunkhwa province.  It is located on the River Kunhar in Mansehra District.

Lenders for the project, which is being developed through Debt Equity ratio of 75:25, include the Export-Import Bank of China, and Industrial and Commercial Bank of China (ICBC).

Construction work has already started at the project site, with completion expected in 2022.