A $37.3 million loan from the Asian Development Bank (ADB) is to be used to help finance an 80 MW hydro project in Pakistan.
The run of river Bong Escape Project is to be located on the escape channel from the existing Mangla power station on the Jhelum River in Azad, Jammu and Kashmir. The project is ADB’s first proposed assistance to a private sector hydropower project in Pakistan and the first such project to be developed in the region. Construction is expected to begin shortly with commercial operations due to begin in early 2009.
The project company, Laraib Energy, is owned by a subsidiary of Malaysian engineering company Ranhill Berhad. Loan facilities are also being provided by the Islamic Development Bank and Pakistan commercial banks.