The agreement involves developing two hydropower projects in a public private partnership with a cumulative power generation capacity of 1,161 MW
To harness water resources for electricity generation, two memoranda of understanding (MOU) have been signed by the government of Khyber Pakhtunkhwa, the Pakistan Water and Power Development Authority (Wapda) and Korean firms. The agreement involves developing two hydropower projects in a public private partnership with a cumulative power generation capacity of 1,161 MW. The agreement emerged from President Zardari’s recent visit to Korea.
The first MoU was signed with Korea Midland Power Company (KOMIPO) for the 496 MW-Lower Spat Gah Hydropower Project and the second with K-Water/Daewoo consortium for the 665 MW-Lower Palas Valley Hydropower Project. The MoU was signed by Wapda Chairman Raghib Shah, KPK Shydo Managing Director Bahadur Shah, KOMIPO Chairman and CEO Choi Rak and K-Water representative in Pakistan, No Hyuk Park.
Korean Ambassador to Pakistan, Choong Joo Choi, was also present. Addressing the ceremony, he termed the signing of the MoU a milestone that would bring the two countries closer.
Shah said that the Korean firms, which were selected through international competitive biddings, will bring in with them an investment of more than two billion dollars for the construction of the two hydro power projects. This shows the confidence that international financial institutions have in Wapda for the implementation of projects in the water and hydro power sectors, he added.
Shah further said that the two projects will contribute more than 4.5 billion units of electricity to the National Grid annually. He said that they are part of the strategy for optimum utilization of the water resources to help overcome electricity shortages and stabilize power tariff for the consumers. He said that Wapda is implementing more than 20 projects to generate roughly 20,000 MW of electricity and store 12 million acre feet of water.
Lower Spat Gah Hydropower Project is located on a left bank tributary of River Indus with its confluence some eight kilometers downstream of Dasu town in district Kohistan. Moreover, Lower Palas Valley Hydropower Project is located on another left bank tributary of River Indus with its confluence some 12 kilometers upstream of Patan town in Kohistan district.