Islamabad, Pakistan, December 13, 2011—
IFC, a member of the World Bank Group, is providing a $60 million loan to Star Hydro Power to support the construction of a private hydro-power project in Pakistan and increase the country’s supply of renewable energy.
The 147 megawatt run-of-the-river power plant is the largest privately financed hydro-power development in Pakistan. The Export-Import Bank of Korea, the Asian Development Bank and the Islamic Development Bank are also financing the $409 million project.
Star Hydro Power is 80 percent owned by the Korea Water Resources Corporation and this project will help promote foreign direct investment in Pakistan, a country where only about 16 percent of hydro-power resources have been harnessed.
“A reliable power system is essential for the economic development of Pakistan, and this project will help us towards that goal,” said Byung Hoon Yune, Vice President of Oversees Business at Korea Water Resources. “IFC’s support is a vote of confidence in not only our company, but also in Pakistan’s electricity sector.”
Said Adil Marghub, IFC’s Infrastructure Manager for the Middle East and North Africa, “IFC’s partnership with Star Hydro, one of our key clients, enables us to extend additional support to the renewable-energy sector in Pakistan. We hope this project will stimulate the interest of other investors in harnessing the country’s favorable hydro resources.”
The project is expected to help alleviate a severe power shortfall in Pakistan and reduce the country’s reliance on imported fuel for power generation. Since 1995, IFC-funded projects have helped generate 3,300 megawatts of power in Pakistan.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org
.
About Star Hydro Power
Star Hydro Power is majority-owned by the Korea Water Resources Corporation, Korea’s largest water utility company, and operates 15 dams and 26 hydro-power plants.
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