Civil works deal awarded for 128MW Keyal Khwar Hydropower Project

[Edevelop]

LAHORE: Water and Power Development Authority (WAPDA) and a joint venture comprising Sinohydro and Hajvairy groups signed a contract of civil works for 128-megawatt (MW) Keyal Khwar Hydropower Project worth Rs 14.544 billion on Friday.
WAPDA is constructing this Hydropower Project on a tributary of Indus River in Kohistan district Khyber Pakhtunkhwa, about 310-kilometer from Islamabad.
The project will take 4 years to complete. On completion, Keyal Khwar will generate 418 million units of low-cost hydel electricity per annum.
European Investment Bank (EIP), the German Development Bank (KfW) and the government of Pakistan jointly fund the project.
KfW is providing 100 million euros while EIP is providing 97 million euros respectively for the purpose.
Executive Committee on National Economic Council in its meeting on September 13, 2014 approved the revised PC-1 of the project with a rationalised cost of Rs 27.8 billion. The German Development Bank had also issued a No Objection Letter to WAPDA for award of its civil works contract to the joint venture.
WAPDA member Water Muhammad Shoaib Iqbal and General Manager Sinohydro Duan Jianxia signed the contract on behalf their respective bodies.
WAPDA member Finance Anwar-ul-Haq, senior officers of WAPDA and representatives of joint venture were also present.

Civil works deal awarded for 128MW Keyal Khwar Hydropower Project

 

[wadi79]

LAHORE: Water and Power Development Authority (WAPDA) and a joint venture comprising Sinohydro and Hajvairy groups signed a contract of civil works for 128-megawatt (MW) Keyal Khwar Hydropower Project worth Rs 14.544 billion on Friday.
WAPDA is constructing this Hydropower Project on a tributary of Indus River in Kohistan district Khyber Pakhtunkhwa, about 310-kilometer from Islamabad.
The project will take 4 years to complete. On completion, Keyal Khwar will generate 418 million units of low-cost hydel electricity per annum.
European Investment Bank (EIP), the German Development Bank (KfW) and the government of Pakistan jointly fund the project.
KfW is providing 100 million euros while EIP is providing 97 million euros respectively for the purpose.
Executive Committee on National Economic Council in its meeting on September 13, 2014 approved the revised PC-1 of the project with a rationalised cost of Rs 27.8 billion. The German Development Bank had also issued a No Objection Letter to WAPDA for award of its civil works contract to the joint venture.
WAPDA member Water Muhammad Shoaib Iqbal and General Manager Sinohydro Duan Jianxia signed the contract on behalf their respective bodies.
WAPDA member Finance Anwar-ul-Haq, senior officers of WAPDA and representatives of joint venture were also present.

Civil works deal awarded for 128MW Keyal Khwar Hydropower Project

Good to hear of the project moving ahead. It may be better for Pakistan to do multiple smaller projects such as these compared to 'mega' projects:
1. Smaller projects would take less time than 'mega' projects - you would not have billions of dollars tied up for years on end, something Pakistan can't afford.
2. The equity requirements would be less - Pakistan would be able to fund these projects with own resources, rather than have a foreign company own/operate a project of national importance for 20-25 years with 25%+ returns. This way, profits will stay in Pakistan and will be available for further investment.
3. As some projects get completed, the profits generated from power sales can be used to fund further projects. You can create a national champion in the power sector, similar to some companies such as NTPC, NHPC in India.
4. From a risk mitigation perspective, multiple small dams are better than 1 large dam - which is a concentration of risks. Nature has a habit of throwing 'unprecedented' floods/earthquakes etc. Any significant damage/shutdown/dam-collapse will be a major national disaster for Pakistan. Even if its a very small probability, it is unacceptable, in my view.