New Bong Escape Hydropower Project 2.41

The New Bong Escape Hydropower Project is a privately owned 84 MW run-of-the-river project located on Jhelum River 7.5 km downstream of the 1,000 MW Mangla Dam, a major multi-purpose water storage project commissioned. It is about 120 km from Islamabad, the capital city of Pakistan. The Project commenced commercial operations on 23 March 2013 and has the distinction of being Pakistan and AJ&K’s first hydropower IPP. By developing a bankable framework this trendsetting project has paved the way for rapid and full scale development of Pakistan and AJ&K’s hydropower potential.The Project is jointly owned by Hubpower (HUBCO) and Laraib Group with an equity split of 75% and 25% respectively.The Project has been developed under Build-Own-Operate-Transfer (BOOT) basis, whereby it would be transferred to the Government of AJ&K free of cost at the end of a 25-year term.Financing and costThe Project achieved Financial Closing on December 20, 2009. Total Project cost is estimated at about US$235 million and financing is arranged at debt equity ratio of 75/25.USD financing has been provided by Asian Development Bank, Islamic Development Bank, International Finance Corporation, and the French origin Société de Promotion et de Participation pour la Coopération Economique (“PROPARCO”) whereas PKR financing has been provided by Habib Bank Limited (“HBL”) and National Bank of Pakistan (“NBP”).