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ADB approves $300 million loan for Pakistan hydropower plant

  • 8 months ago (2021-03-31)
  • David Flin
Asia 687 Hydropower 49

The Asian Development Bank (ADB) has approved a $300 million loan to finance construction of a 300 MW hydropower plant on the Kunhar River in Khyber Pakhtunkhwa Province, Pakistan. The plant will incorporate seismic strengthening and climate proofing measures and is scheduled to be commissioned by 2027.

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The plant will substantially increase the revenue of the state-owned Pakhtunkhwa Energy Development Organisation , which is responsible for running hydropower plants in the province.

The Pakistan Government said it will invest $175 million in the project, and that it has requested a $280 million loan in project co-financing from the Asian Infrastructure Investment Bank .

Adnan Tareen, Principal Energy Specialist with ADB, said: “Pakistan is highly vulnerable to climate change, with water resources and energy particularly at risk from floods, droughts, high temperatures, and other extreme weather events. This hydropower plant will boost the country’s clean energy generation while effectively utilising its vast water resources.”