hydroelectric power plant

New Bong Escape Hydropower Project

The 84 MW New Bong Escape Hydropower Project, in Azad Jammu and Kashmir (AJK), Pakistan is a run-of-the-river hydropower facility.

PROJECT GOALS

The first independent hydropower producer in Pakistan

The main purpose of the project activity is to establish the first independent hydropower producer of the country and to generate electricity to supply the national grid using clean, renewable and sustainable natural resources and tapping the significant hydropower potential of Pakistan.

map pakistan

PROJECT BENEFITS & SDGS

The Project Will Serve to:

Enhance local employment opportunities during construction (500-700 persons) and during operation (100-120 persons).

Spin off benefits and stimulation of local economy through creation of business opportunities.

Improve the skill set for local inhabitants through training and capacity building for employment in the project contributing to growing technical advancement.

Reduction of poverty in an economically depressed region with very little industry and high unemployment.

The project not only reduces or replaces equivalent thermal generation with all the associated environmental benefits, but it also promotes an overall environmental well-being.

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Project Challenge

Challenge

Despite the large hydropower potential of the country, Pakistan’s grid is predominantly hydrocarbon intensive. Due to
looming power shortages and increasing demand/supply gap at a rate of some 1,000 MW per annum economic planners and political decision makers are forced to turn once again to “quick fix” thermal generation to mitigate the significant power shortages expected.

The project activity represents the development of the first independent hydropower producer in Pakistan and is expected to act as a catalyst for further hydropower investments in the country and open the way for private capital in this vital sector. The Mangla reservoir, dam and 1,000 MW powerhouse, constructed in the early sixties feeds the project downstream of the Mangla powerhouse, through its tailrace channel.

Project ACTIONS

Actions Taken

The project supplies clean and renewable hydroelectricity to the deficient national power grid and contributes to GHG emission reduction by displacing the electricity production requirement of fossil fuel-fired power plants to the extent of its generation. The construction of the plant involved almost 700 local people and the operation enhanced the employment of 120 people. Beside the citizens, the project also stimulates and benefits the local economy through creation of business opportunities at different stages of project implementation to provide goods and services for the project both during construction and operation. This hydro project worked closely with the Designated National Authority in the development of CDM projects in the country as this is the pioneer private hydropower project eligible for CERs. This activity involved the development of a legal, financial and conceptual framework for private hydropower and facilitate removal of obstacles and bottlenecks for private hydropower development thus providing templates and models which will be used by forthcoming projects.

Project RESULTS

Results

The implementation of the project has reduced carbon emissions in the national grid and replaced carbon intensive thermal generation. The new plant will result in the reduction of some 4.572 million tons of CO2e emissions over the crediting period of 21 years.
The involvement of the local citizens and businesses into the project during its construction and operation phases improved their skill set through training and capacity building. As a result, poverty in an economically depressed region with very little industry and high unemployment could be reduced.
The project not only reduces or replaces equivalent thermal generation with all the associated environmental benefits, but it also promotes an overall environmental well-being since the project helps avoiding all associated pollution caused through extraction, processing, storage and transportation of conventional fossil fuels required for thermal generation and substituted (reduced) to the extent of the project generation. The project has also assisted in improving social infrastructure and public amenities in the area through construction of a new medical clinic and improvement of existing schools.
From the perspective of the national economy, the project has saved foreign exchange and improved the balance of payments as it created space in the latter through saving of foreign exchange required to import oil to service an equivalent thermal generating plant.
The project helped reduce the cost of electricity in the national grid through improved thermal/hydroelectric mix in the system and enhancement of competitive advantage for industry and commerce.

Elia Fedorovski

PROJECT LEAD

Elia Fedorovski

Elia oversees fintech and business development at Pact Capital. An alumnus of the University of Warwick, he holds a first-class degree in Law and Finance. After finishing his studies, Elia spent five years at Traxys, where he worked in business development and trading. He then went on to found FabrikaNYC, a software studio and incubator. Under his leadership as COO, FabrikaNYC expanded to a team of 40, successfully completing nearly 50 projects. This includes four VC-backed ventures that collectively raised $120 million in funding and two exits through public listings.