Sinohydro-Sapphire consortium wins licence to build 152MWs, $400m hydropower plant in KP

ISLAMABAD, August 26 (Gwadar Pro)- Sapphire Hydro Ltd., a consortium of China’s state-run Sinohydro Corp. and Lahore-based Sapphire Group, obtained approval of National Electric Power Regulatory Authority (NEPRA) to develop a 152-megawatt hydropower project in KP province as an independent power producer. The estimated cost of the project is $400 million, with a debt to equity ratio of 80:20, and will be executed on a build-own-operate-transfer basis, NEPRA said on August 25.

The Sharmayi Hydropower Project is located on River Panjkora in the less-developed northwest district of Upper Dir. The project has strategic importance for the country in view of the rising demand for clean and cheaper energy, NEPRA stated. The regulator also acknowledged the contribution of Sinohydro Corp. to Pakistan’s power sector. It also said that Sapphire Hydro had obtained all necessary approvals for the project. The Peshawar Electric Supply Co., which distributes electricity in KP province, informed NEPRA during the licensing procedures that it had no issues in evacuating power from the HPP through two existing transmission lines.

It’s worth mentioning that four months ago, a consortium of Sinohydro and Pakistan’s Sachal Group was granted license to build 82MWs Turtonaz-Uzghor HPP in Chitral district of KP, adjacent to Upper Dir district. These projects are expected to end extreme deprivation in these poverty-stricken districts by providing jobs and affordable electricity.

Sharmayi HPP involves a 32 million cubic metre water reservoir with 45-metre high concrete retention walls. The project will house three underground power plants and a 7.8 kilometres pressure head race tunnel. The project will produce 696 million units of electricity per year.

A senior engineer with Pakhtunkhwa Energy Development Organisation (PEDO) earlier told Gwadar Pro that projects involving underground hydropower plants were highly complicated in terms of execution. He, however, said that the Chinese companies had vast experience in executing such projects around the world, including Pakistan.

PEDO is the client and supervising agency for both Sharmayi and Turtonaz-Uzghor HPPs.