Suki Kinari Hydropower Project

SK Hydropower Project
Location of SK Hydropower Project in Pakistan
Official name Suki Kinari Hydropower Project
Country Pakistan
Location Kaghan, Khyber Pakhtunkhwa
Coordinates 34°43′23.24″N 073°32′33.58″E / 34.7231222°N 73.5426611°E / 34.7231222; 73.5426611Coordinates: 34°43′23.24″N 073°32′33.58″E / 34.7231222°N 73.5426611°E / 34.7231222; 73.5426611
Purpose Water storage and Power generation
Status Under construction
Construction began 2017
Opening date est. 2021
Construction cost $ 1.9 Billion
Owner(s) SK Hydro[1]
Dam and spillways
Type of dam Embankment, asphalt concrete face, rock-fill
Impounds Kunhar River
Height 54.5 m (179 ft)
Length 336 m (1,102 ft)
Reservoir
Max. length 3.1 km (1.9 mi)
Power station
Commission date expected 2022
Type Run-of-the-river
Hydraulic head 848 m (2,782 ft) (net)
Turbines 4 x 210 MW Pelton-type
Installed capacity 870 MW
Annual generation 2,958 GWh

SK Hydro also known as Suki Kinari HPP, is an under construction,[2] run-of-the-river hydropower project located on the Kunhar river in the Kaghan valley of Mansehra District Khyber Pakhtunkhwa, which has an installed generation capacity of 870 MW. The project is one of Pakistan's largest private-sector power development project,[3] and is being constructed as part of the China–Pakistan Economic Corridor's "Early Harvest" projects, although the government of Khyber Pakhtunkhwa disputes this, arguing that financing for the project predates the announcement of CPEC.[4]

Background

The project was first envisaged in 1960, and feasibility studies have been carried out by German GTZ, Quebec based Montreal Engineering and recent detailed design and engineering study was performed by Mott Macdonald of UK.[5]

The Private Power and Infrastructure Board of Pakistan identified a number of sites in the country that were deemed attractive for their hydropower potential. In March, 2005, PPIB publicly advertised seven hydro power sites for implementation in the private sector pursuant to the Policy for Power Generation Projects 2002.

SK Hydro Consortium, having the requisite technical and financial strength, submitted its bid for the Suki Kinari Hydropower project. The consortium was prequalified, and a Letter of Interest (LOI) for conducting feasibility study of the project was issued to SK Hydro on 15 November 2005. he government of the province of Khyber Pakhtunkhwa, Pakistan, announced on August 24,2016 that it has signed an agreement with SK Hydro Private Ltd., and Industrial and Commercial Bank of China to develop and construct the dam.[6]

Project details

The dam will be constructed as a 54.5 meter high and 336 meter wide concrete gravity dam with 2 gated spillways.[7][8] Four 218 MW turbines are to be installed as part of the project, and will generate approximately 870 MW of electricity in total.[9]

Construction of the dam will result in the formation of a 3.1 kilometer long reservoir with a capacity of 9 million cubic meters of water. It will not cause large scale displacement of populations as no villages or towns will be inundated by the resulting dam's reservoir,[10] although a four kilometer section of the Kaghan-Naran highway will have to be diverted as a result of construction works and the resulting reservoir.[11]

Accompanying transmission lines will be constructed by Pakistan's National Transmission and Dispatch Company, and is not considered complementary to the project, but is to be constructed separately from the dam itself.[12]

Expected completion date for the dam is 2023.[13]

Financing and tariff

The project is being built on a "Build, Own, Operate and Transfer" basis in accordance with Government of Pakistan's Policy for Power Generation Projects 2002.[14] The dam is being developed by Pakistan's SK Hydro group and China's Gezhouba Group.[15] In April 2015, an agreement for 75% of financing costs was signed by the developers and the Exim Bank of China and Industrial and Commercial Bank of China.[16]

The projected cost for the project was initially projected to be $1.314 billion,[17] but as a result of devaluation of the Pakistani Rupee, the cost is now estimated to be $1.8 billion.[18]

The Government of Pakistan has agreed to purchase electricity from SK Hydro at a cost of 8.8415 US cents per kilowatt hour for the 30 years.[19][20]

References

  1. ↑ http://www.skhydro.com/#
  2. ↑ "Pakistan to get 5,600MW electricity under CPEC". Daily Times. 8 September 2015. Retrieved 13 March 2016.
  3. ↑ http://www.skhydro.com/about-us/sponsors.html
  4. ↑ "No energy project under CPEC in KP". The Nation. 4 January 2016. Retrieved 13 March 2016.
  5. ↑ "Suki Kinari: Landowners threaten to resist acquisition for hydropower project". The Express Tribune (Pakistan). 19 February 2015. Retrieved 13 March 2016.
  6. ↑ "Background". SK Hydro. Retrieved 13 March 2016.
  7. ↑ "Tariff Petition" (PDF). NEPRA. 27 June 2013. p. 8. Retrieved 13 March 2016.
  8. ↑ "Project Components". SK Hydro. Retrieved 13 March 2016.
  9. ↑ "Salient Features". SK Hydro. Retrieved 13 March 2016.
  10. ↑ "Tariff Petition" (PDF). NEPRA. 27 June 2013. p. 9. Retrieved 13 March 2016.
  11. ↑ "Tariff Petition" (PDF). NEPRA. 27 June 2013. p. 14. Retrieved 13 March 2016.
  12. ↑ "Tariff Petition" (PDF). NEPRA. 27 June 2013. p. 10. Retrieved 13 March 2016.
  13. ↑ "Suki Kinari: Landowners threaten to resist acquisition for hydropower project". The Express Tribune (Pakistan). 19 February 2015. Retrieved 13 March 2016.
  14. ↑ "Determination of the Authority in the matter of Tariff Petition filed by S.K. Hydro (Private) Ltd. for Determination of Generation Tariff in respect of 870.25 MW Suki Kinari Hydropower Project [Case # NEPRA/TRF-232/SKHPL-20131" (PDF). NEPRA. 18 March 2014. p. 1. Retrieved 13 March 2016.
  15. ↑ http://www.cggc.cc/2015-01/30/content_19450634.htm
  16. ↑ "Financing". SK Hydro. Retrieved 13 March 2016. The project is being supported by Export-Import Bank of China and Industrial and Commerce Bank of China Ltd. (ICBC) (‘Lenders’). The Company has signed a Facilities Agreement with the Lenders for full 75% of Debt portion on April 20, 2015 in the presence of the Honorable President of China and Honorable Prime Minister of Pakistan.
  17. ↑ "Determination of the Authority in the matter of Tariff Petition filed by S.K. Hydro (Private) Ltd. for Determination of Generation Tariff in respect of 870.25 MW Suki Kinari Hydropower Project [Case # NEPRA/TRF-232/SKHPL-20131" (PDF). NEPRA. 18 March 2014. p. 5. Retrieved 13 March 2016.
  18. ↑ "Deal signed for 870MW hydropower project". The Nation. 12 April 2014. Retrieved 13 March 2016.
  19. ↑ "Deal signed for 870MW hydropower project". The Nation. 12 April 2014. Retrieved 13 March 2016.
  20. ↑ "Costs". SK Hydro. Retrieved 13 March 2016. NEPRA has determined EPC Stage Levelized Tariff at US¢ 8.8415/kWh over the 30 year term. The debt to equity ratio is 75 to 25.
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