ADB approves 300 mln USD loan to build hydropower plant in Pakistan

The Asian Development Bank (ADB) has approved a 300-million-U.S.-dollar loan to finance the construction of a 300-megawatt hydropower plant that will boost clean energy in Pakistan and improve its energy security, the Manila-based bank said on Tuesday.

The ADB said the plant will add 1,143 gigawatt-hours of clean energy annually to Pakistan's energy mix, enhancing its reliability and sustainability.

It said the plant, which will incorporate seismic strengthening and climate-proofing measures, will be built on the Kunhar river near Balakot City in the northwestern Khyber Pakhtunkhwa Province and commissioned by 2027.

ADB Principal Energy Specialist Adnan Tareen said in a statement that the "climate-resilient hydropower plant will boost the country's clean energy generation while effectively utilizing its vast water resources."

Pakistan is rich in hydropower resources, but only around 16 percent of its identified hydropower potential has been harnessed. The country's power sector relies on imported fuel-based power generation and is burdened with a stressed transmission and distribution network, according to the ADB.

The ADB said the Balakot Hydropower Plant will also generate economic activity and improve local communities' skills. During construction, the ADB said the project will create more than 1,200 jobs, about 40 percent of which will be sourced locally, and provide livelihood skills development for women.