IFC, a member of the World Bank Group, has announced plans to invest $100M in the 720MW Karot run-of-river hydropower project in Pakistan.
The $1.7bn project on the Jhelum River has achieved financial close. The facility is anticipated to generate 2,970GWh of net energy annually — sufficient to power almost 3M households.
Bernard Sheahan, IFC’s global director for infrastructure and natural resources, said: “Improving access to electricity in Pakistan is a priority for IFC and the World Bank Group, and we are pleased to see the Karot project advance.
“Our priority has been to support the sponsor and the company in the project’s development by strengthening their environmental, social, and corporate governance capabilities, to ensure power is delivered sustainably.”
The project is IFC’s largest hydroelectric power project to date and represents its first major collaboration with the China Export Import Bank, the China Development Bank, and the Silk Road Fund.
Karot is expected to be operational in five years.