Islamabad, March 7, 2016— IFC,
a member of the World Bank Group, has won an award from Infrastructure
Journal magazine, a leading sector publication, for arranging $122 million
in debt financing for a new hydropower plant in Pakistan.
The Infrastructure Journal Awards recognize
excellence, achievement and innovation in energy and infrastructure finance.
IFC won the magazine’s “Asia Pacific Hydro Deal of The Year award” for
providing financing for the 102-megawatt Gulpur Hydro project, developed
by Mira Power Limited, a subsidiary of Korea South East Power Co. Ltd (KOSEP)
of South Korea.
The project involves the construction
and operation of a run-of-the-river hydro plant on the Poonch River, which
is expected to help ease crippling power shortages in Pakistan and meet
demand for over 430,000 individual residential customers.
The complex financing for the project
comprised an IFC investment of $50 million and a mobilization of $72 million
in senior loans from development finance institutions. Other lenders to
the project included ADB and Korea EXIM Bank. Gulpur is KOSEP’s first
international hydro project to reach financial commitment.
Pakistan has been facing a severe power
deficit in recent years with daily blackouts of up to six hours or more
in many areas, hindering industrial growth and adversely affecting the
quality of life for millions. The deficit is estimated to have cut economic
growth by about 2 percent of the country’s annual Gross Domestic Product.
The country represents IFC’s second-largest
exposure in the MENA region, with over $5.6 billion in cumulative investments
committed to date.
IFC, a member of the World Bank Group,
is the largest global development institution focused on the private sector
in emerging markets. Working with more than 2,000 businesses worldwide,
we use our capital, expertise, and influence, to create opportunity where
it’s needed most. In FY15, our long-term investments in developing countries
rose to nearly $18 billion, helping the private sector play an essential
role in the global effort to end extreme poverty and boost shared prosperity.
For more information, visit www.ifc.org