Gulpur Hydropower

South Asia Infrastructure

The Gulpur Hydropower plant is one of several World Bank-funded projects located in Pakistan and is part of the Pakistan Government’s least-cost energy generation plan.

The plant is being developed by Mira Power, a subsidiary of Korean company KOSEP, and lies on the Poonch River about 170km from Islamabad.

Our investment

We provided a loan of $17..2 million in 2015 to support the construction of Gulpur Hydropower Plant, a new 102 megawatt (MW) hydro power plant with annual generation capability of 465 GWh.

The Asian Development Bank (ADB) is providing the loan to Mira Power. The facility will help tackle Pakistan’s dire power shortage.

Expected impact

Pakistan can be a difficult place to do business. There is potential growth – steadily expanding economic growth, rising consumer demand and a growing middle class.

However, transportation and infrastructure are weak, and lack of power is one of the biggest barriers to Pakistan’s development. Blackouts, lasting eight hours on average, leave millions without power and hold back businesses.

The new plant, which will be completed by 2020, will bring down the overall cost of power in Pakistan and will also help to reduce greenhouse gas emissions by moving away from thermal power generation. Currently, 68 per cent of Pakistan’s energy comes from fossil fuels, 29 per cent from hydropower and 3 per cent from other sources.

Environmental and social aspects

CDC and other investors have been working with the company to address the environmental and social (E&S) challenges associated with the project, including contractor management, health and safety risks, and biodiversity impacts.

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

:
South Asia
Countries:
Pakistan
Sector

We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people.

:
Infrastructure
Website:
http://www.mira-power.com/
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

:
Direct Debt
Start date

For direct investments, this is the date CDC committed capital to the business or project.

For funds, this is the date that CDC committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

:
May 2015
Amount

For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).

For funds, this is the total amount that CDC has committed to the fund.

:
$17.2m
Domicile

This is the investee company’s place of incorporation; or a fund’s jurisdiction.

:
Pakistan