The 102MW run-of-river hydropower generating facility will be built on the Poonch River in Kotli district, and is expected to meet about 2% of power shortages in the country while strengthening its energy security.
The $367m project, which is expected to be completed in March 2019, will also help reduce annual greenhouse CO2 emissions of early 254,000t in the region.
ADB private sector operations department investment specialist Azim Hashimi Mohammed said: "Severe power shortages remain a major constraint on Pakistan’s economy, and scaling up the use of hydropower is essential for meeting demand and reducing the country’s reliance on costly imported fossil fuels for electricity production.
"This project also supports the Government of Pakistan’s policy of tapping the private sector for power industry investment."
Mira Power, a special purpose company jointly owned by Korea South-East Power and units of the Daelim Business Conglomerate and Lotte, will build the facility on a build-own-operate-transfer basis over the next 30 years.
Power generated from the power plant will be sold to the state-owned National Transmission and Despatch Company under a take-or-pay power purchase agreement.
The project will also receive funding from Export-Import Bank of Korea and the International Finance.
