MANDALUYONG, 31 March, 2021 (TON): On Tuesday, the Asian Development Bank (ADB) approved a $300 million loan to finance the construction of a 300-MW hydropower plant in Pakistan.

The plant will increase the clean energy share and improve the energy security in Pakistan.

As per details, the hydropower plant will add 1,143 GW-hours of clean energy annually to the country’s energy mix, enhancing the energy sector’s reliability and sustainability.

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

ADB Principal Energy Specialist Adnan Tareen said, “Pakistan is highly vulnerable to climate change, with water resources and energy particularly at risk from floods, droughts, high temperatures, and other extreme weather events.”

“In line with Pakistan’s climate change adaptation and mitigation priorities, this climate-resilient hydropower plant will boost the country’s clean energy generation while effectively utilizing its vast water resources,” he added.

The government will invest $175 million in the project. It has also requested a $280 million loan in project co-financing from the Asian Infrastructure Investment Bank that will substantially increase the revenue of the state-owned Pakhtunkhwa Energy Development Organization.