KARACHI: Olympus Energy (Pvt) Limited plans a $43.72 million 20MW hydropower project to be setup on River Chenab at Marrala Barrage, according to the project file.
The 20MW Lucky hydropower project is being planned and developed as a low head run-of-the-river scheme and is expected to generate 84.97GWh electricity annually.
The project is being developed in private sector under the Power Generation Policy 2006 and is on a build-own-operate-transfer (BOOT) basis with an expected concession period of 30 years of operation and three years of construction period, it revealed.
The funding plan consists of 80:20 debt-to-equity ratio and lenders include a syndicate of international development financial institutions and local financial institutions.
Olympus Energy has proposed to the National Electric Power Regulatory Authority (Nepra) a levelised tariff of 9.235 US cents per unit (kWh).
The project details suggest that in order to ensure security of the energy supplies, the government is required to pursue policies of increasing domestic supplies, attracting foreign investment, diversifying imports to include natural gas, coal and electricity, encouraging economic inter-fuel substitution, promoting energy efficiency and renewable energy and supporting regional and inter-regional cooperation.
The government through the Water and Power Development Authority (Wapda) and private sector plans to concentrate on water and power projects in the next five years, including construction of large dams, small and medium water storage dams, canals and construction of transmission lines for dispersal of power from hydropower projects to load centres of the national grid. Currently, Pakistan has 21,000MW of installed capacity for electricity generation.