hydroelectric power plant

New Bong Escape Hydropower Project

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


The first independent hydropower producer in Pakistan

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

The power generated will be sold, through a 25-year power purchase agreement, to the Government owned National Transmission and Dispatch Company Limited (NTDC).

map pakistan


The Project Will Serve to:

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

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

Improving 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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Pakistan flag

Project Challenge


Despite the large hydropower potential, 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 planners are forced turn once again to “quick fix” thermal generation to mitigate the significant power shortages expected.

The project activity represents development of the first independent hydropower producer in Pakistan and is expected to act as a catalyst for hydropower development in the country and open the way for private investment 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.

power line


Actions Taken

The Project Activity is categorized in the sectoral scope 1 – Energy Industries (renewable – / non-renewable sources) and realizes greenhouse gas emission reductions by the substitution of carbon intensive grid electricity by means of less carbon intensive permeate gas based electricity production. The total estimated emission reductions associated with the Project Activity over the crediting period (10 years) are 4,670,410 tCO2, with an annual average of 467,041 tCO2 /yr.




The Project Activity contributes to sustainable development by the following means:

The CCPP will help the government in coping with the increasing demand for electricity in the country without increasing greenhouse gas emissions. The erection of the CCPP will further enhance the power supply to the local area, making power supply more reliable and therefore improve the quality of services.

The Project Activity will also create additional jobs during the construction period of the CCPP, which will strengthen the regional development. It is expected that during the peak construction period up to 3,000 people will be working on site, out of which 1,500 are Pakistanis and more than half of them are employed from the local community. During normal operation of the CCPP, after the construction period, approximately 175 are expected to be employed.

Moreover, the Project Activity introduces a state of the art technology to a country with development needs. It will strongly contribute to the local capacity building, and it will facilitate possible replications of this type of projects.

The ´No-Action´ option, if chosen, would prevent the country from exploring the potential to increase its power production by means of utilising a waste gas product (permeate gas otherwise flared) and instead using more carbon intensive fuels such as residual fuel oil or in the future, coal for electricity generation.

Elia Fedorovski


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.