K-Water Star Patrind HPP

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Star Hydro Power Ltd., jointly owned by Korea Water Resources Corporation (KSE:071320) (80%), Daewoo Engineering & Construction Corporation (KSE:047040) and Sambu Construction Corporation (KSE:001470) via their joint investment vehicle KDS Hydro (Singapore), was planning the development of the 147MW Patrind Hydropower plant, run-of-river, between Kunhar River and Jhelum river, Muzaffarabad district, Patrind. Star Hydro Power Ltd. is incorporated via KDS Hydro Private Limited, Singapore. The project was to operate under a 30 year PPA with National Transmission and Dispatch Company (NTDC), a state-owned singlebuyer. Commissioning was expected for December 2016. The project was developed under a BOOT contract, with 30 year concession. EPC contractor was Sambu Construction Company. The project reached financial closure in January 2012. The IFC and the Islamic Development Bank (IDB) provided $60 million each. IFC was to provide a $60 million loan. IDB was to provide a $60 million lease financing. In October 2011, the ADB decided to provide $97 million in loans. Total cost was estimated at $409-436 million. Part of the financing was to be provided by the Export-Import Bank of Korea ($110 million, announced May 2011). Debt/equity ratio is 70/30. Legal advisers to the lenders were Shearman & Sterling. Legal advisers to the sponsor were Rizvi, Isa, Afridi & Angell. Financial advisers were Habib Bank, and United Bank. MIGA provided a guarantee to cover (a portion of) the equity investment of K-Water, to the amount of US$148.5 million for a period of 20 years. The guarantee covers breach of contract. MIGA approved the guarantee in May 2012 (project id: 10003). http://www.miga.org/projects/index.cfm?pid=1007 Source: Asia Pulse: S.Korea's Eximbank to Fund Pakistani Power Plant Project (2 May 2011). ADP Debt News: ADB to provide credit for 147 MW hydropower project in Pakistan (13 October 2011). http://www.ppib.gov.pk/N_hydel_under_const.htm http://www.nepra.org.pk/Tariff/IPPs/Star%20Hydropower/Star%20Hydro%20Power%20Limited.pdf