ghazi52
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AZAD JAMMU & KASHMIR | Kohala Hydropower Plant | 1100 MW | APP
$2.4bn Kohala hydropower deal finalised
ISLAMABAD: State-run companies of Pakistan and China have finalised a 30-year tariff at 7.9 cents per unit for $2.4 billion Kohala Hydropower Project of 1,100MW capacity in Azad Kashmir.
The National Transmission and Dispatch Company (NTDC) and China International Water and Electric Corporation (CWE) — a subsidiary of Three Gorges Dam — have reached the agreement on feasibility stage tariff.
The tariff is subject to approval by National Electric Power Regulatory Authority (Nepra) as a formality.
The NTDC has now officially sought Nepra’s consent for the agreed tariff given the special legal status of Azad Jammu and Kashmir. The project is located on the river Jhelum downstream of Muzaffarabad and Kohala. CWE of China is required to construct the project on build, own, operate and transfer (BOOT) basis.
Under the agreement, the average tariff for first 12 years has been set at 8.9 cents per unit which would come down to 5.1 cents per unit for next 18 years. The average tariff for 30-year life of the project works out at 7.9 cents per unit.
It ensures 17 per cent return on equity on internal rate of return basis.
The tariff has been finalised on the assurance of the Chinese government that the contractor would get lending from foreign financial institutions for a period of 18 years inclusive of 72-month grace period at interest rate of six-month London Interbank Offered Rate (Libor) plus 4.75pc.
The project targeted to achieve commercial operation in 2023 and generate about 5,093 gigawatt energy a year at 53.4pc average annual plant factor. It is expected to earn carbon credit from the United Nations Framework Convention on Climate Change (UNFCCC) for clean energy development under Kyoto protocol.
$2.4bn Kohala hydropower deal finalised
ISLAMABAD: State-run companies of Pakistan and China have finalised a 30-year tariff at 7.9 cents per unit for $2.4 billion Kohala Hydropower Project of 1,100MW capacity in Azad Kashmir.
The National Transmission and Dispatch Company (NTDC) and China International Water and Electric Corporation (CWE) — a subsidiary of Three Gorges Dam — have reached the agreement on feasibility stage tariff.
The tariff is subject to approval by National Electric Power Regulatory Authority (Nepra) as a formality.
The NTDC has now officially sought Nepra’s consent for the agreed tariff given the special legal status of Azad Jammu and Kashmir. The project is located on the river Jhelum downstream of Muzaffarabad and Kohala. CWE of China is required to construct the project on build, own, operate and transfer (BOOT) basis.
Under the agreement, the average tariff for first 12 years has been set at 8.9 cents per unit which would come down to 5.1 cents per unit for next 18 years. The average tariff for 30-year life of the project works out at 7.9 cents per unit.
It ensures 17 per cent return on equity on internal rate of return basis.
The tariff has been finalised on the assurance of the Chinese government that the contractor would get lending from foreign financial institutions for a period of 18 years inclusive of 72-month grace period at interest rate of six-month London Interbank Offered Rate (Libor) plus 4.75pc.
The project targeted to achieve commercial operation in 2023 and generate about 5,093 gigawatt energy a year at 53.4pc average annual plant factor. It is expected to earn carbon credit from the United Nations Framework Convention on Climate Change (UNFCCC) for clean energy development under Kyoto protocol.
