SK Hydropower builder witnesses BR construction, a CPEC role model

BEIJING: Suki Kinari Hydropower builder witnesses joint Build and Road construction, a CPEC role model, reports China Economic Net on Wednesday.

As one of the biggest private-sector hydropower developments in Pakistan and one of the highest priority early harvest projects within the China-Pakistan Economic Corridor (CPEC), it is of great significance and is expected to be put into operation in 2022.

Suki Kinari Hydro Private Limited (SK Hydro), in which China Gezhouba Group holds a majority stake of 98%, is developing the project with an estimated investment of $1.96bn.

“I have witnessed the joint efforts of the Chinese and Pakistani employees in Suki Kinari Hydro Private Limited (SK Hydro). Relevant government departments of the two sides have forged ahead with strong cooperation.

“I think the project is an accurate portrayal of the joint Belt and Road construction, also the best witness of the historical friendship between China and Pakistan.” said Danish Haseeb Khan, deputy general manager of SK Hydro.

Danish has a deep connection with the SK project. When he joined the project in 2005, Mott MacDonald Ltd was conducting a bankable feasibility study on the project.

Danish was then a member of the supervisory team and was responsible for submitting the electricity prices at the feasibility study stage and EPC (Engineering, Procurement and Construction) phase to Pakistan’s National Electric Power Regulatory Authority (NEPRA).

In addition, he led the SK Hydro’s team to negotiate with Pakistani government agencies on franchise agreements (power purchase agreement, water use agreement, and execution agreement), and to discuss and finalize the financing plan with relevant banks (Industrial and Commercial Bank of China and Export-Import Bank of China).

The Chinese and Pakistani teams of SK Hydro have been working together on this project since 2015. In the process of pushing the financial close, they encountered many difficulties.

Danish told China Economic Herald that when the Pakistani team completed the land acquisition and registration documents, it was very close to the deadline required by the government for the financial close.