102 megawatts Gulpur hydropower project: agreement on direct obligations signed (Business Recorder (Pakistan))

The Implementation Direct Agreement of 102MW Gulpur Hydropower Project was signed on Friday for materialising the financing of around US 320 million dollars as the project cost. The security package agreements of the project ie GoP implementation agreement, AJ and K implementation agreement, water use agreement have already been signed and power purchase agreement has been initiated.

The direct agreement was signed on behalf of the Government of Pakistan by Shah Jahan Mirza, Managing Director PPIB, on behalf of the sponsors by Chief Executive of Mira Power Limited and by Legal Attorney of the lenders which are Asian Development Bank (ADB), International Finance Corporation (IFC) and Korean Export-Import Bank (KEXIM).

Gulpur hydropower project is a run of the river scheme located on River Poonch in District Kotli, Azad state of Jammu and Kashmir. The Korean investors will inject equity of up to 25 percent of the project cost while the banks will finance 75 percent of the project cost. Equity investors for the project included renowned Korean companies namely Korea South East Power Company (KOSEP), LOTTE and DAELIM. Construction of the Gulpur project will start soon after achievement of financial closing which is expected in few weeks. Construction will be completed in four years, and afterwards the private Korean sponsors will operate the power complex for next thirty years. The project will produce about 475 million units of clean, reliable and affordable electricity for the national grid. After completion of thirty years Complex will be transferred to the government at notional price of Rs 1.