ISLAMABAD - Star Hydro Power Limited is going to invest $400 million in 147MW run-of-the-river energy generation project on river Kunhar. The project would take 4 years in completion after construction work starts.
The company is setting up said project as Independent Power Producer. From the total cost 25 per cent would be sponsored by South Korean government and the remaining 75 per cent from banks and other lending organisations that includes Asian Development Bank and Islamic Development Bank.
The project would be operated and maintained for 30 years by K-Water that is a major shareholder in SHPL and after that time it would be handed over to Government of Azad Jammu and Kashmir without any cost.
As per officials and experts in the Ministry of Water and Power these type of projects if started on large scale on many sites could help in reducing cost of electricity in the near future as hydel power was the only solution to the miseries of masses.
Experts said that Ghazi Brotha project that is also a run-of-the-river project and could produce up to 1,100 megawatt energy. They further said that at the moment it could be the best policy to opt for the run-of-the-river projects as they take less time as compared to big dams.
Bhasha dam is a very important project and must be started now but at the same time many run-of-the-river projects should have been started. Bhasha dam, they said, will take minimum 10 years to be completed from the date of commencement because it is big dam and would serve both purpose including water storage and electricity generation.
But on the other side, run-of-the-river project takes lesser time if funds are made available.