- MULTILATERAL DEVELOPMENT BANKS’ COLLABORATION: INFRASTRUCTURE INVESTMENT PROJECT BRIEFS Pakistan: Gulpur Hydro Overview The 102 MW Gulpur Hydropower Plant is the third independent power producer in Paki- stan. Pakistan has been developing an increasing number of hydropower projects to fully tap in to its 60,000 megawatt hydropower potential. This series showcases how the Multilateral Development Banks’ collaboration supports the development and implementation of infrastructure investment. This support comes in the form of public sector loans, private sector finance, sector and transaction advice, guarantees, and output-based aid. - MULTILATERAL DEVELOPMENT BANKS’ COLLABORATION: INFRASTRUCTURE INVESTMENT PROJECT BRIEFS - APRIL 2016 PakistanGulpurHydro_IFC_ABD_MIGA.indd 1 4/6/2016 4:41:06 PM Background Multilateral Development Banks’ Role Pakistan has been facing a severe power deficit for The project has benefitted from: several years, with daily load shedding of around • An International Finance Corporation (IFC) six hours in several urban areas and more in rural loan of $50 million areas. The power deficit is estimated to have curtailed • An IFC Syndicated loan of $72 million economic growth by about 2 percentage points • An Asian Development Bank (ADB) loan of of Gross Domestic Product (GDP) annually. The $65 million Government of Pakistan (GoP) has embarked on • A Multilateral Investment Guarantee Agency a power sector reform agenda to improve sector (MIGA) Guarantee of $82.7 million covering sustainability and mobilize significant investments, equity investments to 15 years against the risk including from the private sector, to address the of breach of contract country’s power sector challenges. While the current installed hydropower capacity in Pakistan is 7,116 Outcomes MW as of FY14 (of which only 214 MW is from the Gulpur HPP, which is currently under construction, private sector), Pakistan has hydropower capacity that will provide cost competitive generation and is estimated at 60,000 MW. additional electricity supply to the national grid. The Company estimates that Gulpur will generate Project Description 465 GW hours per year. By utilizing an indigenous, Gulpur HPP involves construction and operation renewable resource to generate electricity at lower of a 102 megawatt run-of-the-river hydroelectric cost than imported thermal alternatives, the Project power generation facility on Poonch River some 28 will help to diversify the power sector’s fuel mix and kilometers upstream from Mangla Dam, Pakistan’s contribute to the country’s energy security. second largest water storage reservoir. The Poonch River is a tributary of the Jhelum River. The project For more information please contact: will be the third independent power producer of hydropower in Pakistan and will sell all of its World Bank Group: Nadine Ghannam Email: Nsghannam@worldbankgroup.org electricity to the National Transmission and Despatch Company Limited (NTDCL) under a 30-year power Asian Development Bank: Auyn Sundari Email: asundari@adb.org purchase agreement. The Project’s major components include a dam, intake structure and a power house. Including contingency, the total project cost is estimated at $365 million and will be funded with 25 percent equity and 75 percent debt by the lenders, including IFC. The project is being developed by Mira Power Limited (MPL), a special purposes vehicle incorporated in Pakistan. MPL is majority owned by Korea South-East Power Co. (KOSEP, a subsidiary of the Korean utility, KEPCO). Other shareholders in MPL include Daelim Industrial and Lotte Engineering & Construction. Photo Credits Front: jjshaw14/istockphoto Back: U.S. Embassy Pakistan/CC BY ND 2.0 adb.org @ADB_HQ ifc.org @IFC_org miga.org @MIGAWorldBank worldbank.org @WorldBank PakistanGulpurHydro_IFC_ABD_MIGA.indd 2 4/6/2016 4:41:07 PM