Star Hydropower

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Star Hydro Power Limited (“SHPL” or the “Company”) is in the process of developing a 147 MW run-of-the-river greenfield hydroelectric power plant, on a Build Own Operate and Transfer (“BOOT”) basis, situated in part on the Kunhar river, which marks the border between Azad Jammu and Kashmir (“AJK”) and the Khyber Pakhtunkhwa province of Pakistan (“KP”) and in part on the Jhelum river in AJK” (the “Project”). AJK is the Pakistan-administered portion of an area over which India and Pakistan have been in dispute since 1947. By supporting the project, IFC does not intend to make any judgment on the legal or other status of any disputed territories or to prejudice the final determination of the parties' claims. The Project, expected to generate about 632 GWh of energy per annum, will sell all of its output to National Transmission and Dispatch Company (“NTDC”), Pakistan’s state-owned single buyer, under a 30-year Power Purchase Agreement (“PPA”). The Project programme indicates a construction period starting in 2011 with completion scheduled four years later.