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Islamabad, The Pakistani Government is taking strategic steps to generate significant funding for the Diamer-Bhasha Dam project by offering equity stakes in the Ghazi Barotha Hydropower Project (GBHPP). This initiative aims to secure millions of USD to finance the dam, a crucial infrastructure project for the nation.
According to Zameen.com, officials disclosed plans to offer around 30% equity stake in the GBHPP for USD 700-800 million. The Chief of Army Staff (COAS) has been briefed on this initiative, with directives issued to the Special Investment Facilitation Council (SIFC) to consult with various stakeholders.
The proposal involves divesting the equity on a profit-sharing basis to investors from friendly nations over a 10-year period. The Water Resources Federal Minister presented this plan to the COAS, who expressed his appreciation and instructed the SIFC to initiate discussions with the Power Division, Finance Division, and NEPRA.
The Ghazi Barotha Hydropower Project, with a capacity of 1,450 MW, is a significant contributor to Pakistan’s energy sector, producing an average of 800 MW year-round. The government’s strategy includes selling 30% of the hydro generation directly to the export industry under the Competitive Trading Bilateral Contract Market (CTBCM) model, aiming to reduce export industry tariffs and enhance national exports.
Additionally, the Water Resources Ministry, which currently prices the energy at PKR 1.25 per unit, plans to propose an increase in tariff to PKR 10 per unit for the 30% generation of the Ghazi Barotha project to NEPRA. This adjustment is expected to attract potential investors from countries like Qatar, Kuwait, UAE, and Saudi Arabia, contributing to the funding of the Diamer-Bhasha Dam.
The post Pakistan Government Plans to Generate Funds for Diamer-Bhasha Dam appeared first on Pakistan Business News.