Islamabad: The Pakistani Government is set to generate millions of USD for financing the Diamer-Bhasha Dam by offering equity stakes in the Ghazi Barotha Hydropower Project (GBHPP), claimed by a news source on November 22.
According to the details brought to light by officials, around 30% equity stake is set to be offered at USD 700-800 million for financing the Diamer-Bhasha Dam. The Chief of Army Staff (COAS) has been briefed on this strategic initiative, directing the Special Investment Facilitation Council (SIFC) to engage in consultations with various stakeholders.
The news sources indicate that the equity will be divested on a profit-sharing basis to potential investors from friendly nations over a 10-year period. The Water Resources Federal Minister presented the plan to the Chief of Army Staff (COAS), who, in turn, appreciated the proposal and instructed the SIFC to initiate consultations with the Power Division, Finance Division, and NEPRA.
The Ghazi Barotha Hydropower Project, boasting a capacity of 1,450 MW, holds a pivotal role in the national energy landscape, consistently generating an average of 800 MW throughout the year. The government’s strategy involves selling 30% of the hydro generation directly to the export industry through the Competitive Trading Bilateral Contract Market (CTBCM) model. This move aims to reduce export industry tariffs and simultaneously bolster the nation’s exports.
The Water Resources Ministry, currently pricing the energy at PKR 1.25 per unit, intends to persuade NEPRA to raise the tariff to PKR 10 per unit as a baseline for the 30% generation of the Ghazi Barotha project. This proposed adjustment is expected to attract potential investors from friendly nations such as Qatar, Kuwait, UAE, and Saudi Arabia.
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