IFC Invests in New Hydropower Plant in Pakistan to Help Address Power Shortage, Boost Growth
IFC, a member of the World Bank Group, is investing $50 million in a new hydropower plant in Pakistan and mobilizing a further $72 million for the project, to address the country’s power shortage, support lower cost energy generation, and help develop renewable energy sources.
The Gulpur Hydro project, developed by Mira Power Limited, will see the construction, operation and maintenance of a 102 megawatt hydropower plant on the Poonch River, approximately 167 kilometers from Islamabad. Mira Power is a subsidiary of Korea South East Power Co. Ltd. (KOSEP) of South Korea.
Yi, Bo Seuk, General Manager of KOSEP said: “This is KOSEP’s first power generation project in Pakistan. This investment will help us utilize Pakistan’s significant hydropower resource and help address the energy crisis in a cost-effective and environmentally friendly way.”
Pakistan has been facing a severe power deficit in recent years with daily blackouts of up to six hours or more in many areas, hindering industrial growth and adversely affecting the quality of life for millions. The deficit is estimated to have cut economic growth by about 2 percent of the country’s annual Gross Domestic Product.
Wiebke Schloemer, IFC Regional Industry Head for Infrastructure, Europe, Middle East and North Africa said: “Our aim is to help address Pakistan’s power shortage by supporting the development of renewable energy resources that will reduce the country’s reliance on more expensive fuel imports for power generation. We also hope to encourage other international investors to invest in Pakistan’s power sector.”
Pakistan represents IFC’s second-largest exposure in the MENA region, with over $5.6 billion in cumulative investments committed to date. IFC’s current investment exposure in Pakistan is about $1.1 billion in over 45 companies in sectors including infrastructure (energy, ports, and transport), financial markets, and general manufacturing and services.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, we provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit www.ifc.org
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