The new run-of-river project is expected to help promote foreign direct investment in Pakistan, a country where only about 16% of hydropower resources have been harnessed.
“A reliable power system is essential for the economic development of Pakistan, and this project will help us towards that goal,” said Byung Hoon Yune, Vice President of Oversees Business at Korea Water Resources. “IFC’s support is a vote of confidence in not only our company, but also in Pakistan’s electricity sector.”
“IFC’s partnership with Star Hydro, one of our key clients, enables us to extend additional support to the renewable-energy sector in Pakistan,” added Adil Marghub, IFC’s Infrastructure Manager for the Middle East and North Africa We hope this project will stimulate the interest of other investors in harnessing the country’s favorable hydro resources.”
The Export-Import Bank of Korea, the Asian Development Bank and the Islamic Development Bank are also financing the $409M project.
Star Hydro Power is 80% owned by the Korea Water Resources Corporation and operates 15 dams and 26 hydropower plants.