In its first proposed assistance to a private sector power project in Pakistan, the Asian Development Bank (ADB) has approved a US$37.3M loan to help finance an 80MW hydro plant downstream of the Mangla dam.
Located on the Jhelum river in Azad, Jammu & Kashmir, the Bong Escape project is expected to help bridge a pending electricity shortfall and encourage the further development of hydro resources in Pakistan.
Construction of the run-of-river project is to begin shortly, with commercial generation of electricity scheduled for the beginning of 2009. The project is being developed by Laraib Energy Limited, which is owned by a subsidiary of Malaysian company Ranhill Berhad.
Together with the ADB loan and the sponsor equity, the project is expected to be financed with loan facilities from the Islamic Development Bank and Pakistan commercial banks.