GILGIT: In a historic move , the Gilgit-Baltistan Government has signed its first Public Private Partnership deal with Industrial Promotion Service’s Company, NPak, a commercial arm of the Aga Khan Development Network, to build the first ever run-of-the-river power project in GB.
The project will have the capacity to generate 2.8 MW electricity.
The agreement was signed by Mansoor Dhanani, CEO of NPAK (Industrial Promotion Services) and Sajjad Haider, Secretary Water & Power, GB.
The signing ceremony was attended by Mir Afzal, Chief Minister Gilgit Baltistan, Khurram Shehzad, Chief Secretary Gilgit Baltistan, Zafar Iqbal, Director NPAK (IPS), Waqar Abbas Mandoq, Advisor Finance Gilgit Baltistan and Syed Ibrar Hussain, Additional Chief Secretary Gilgit baltistan, along with other key officials from both parties.
Talking to Pamir Times, the Advisor Finance of the Government of Gilgit-Baltistan, Waqar Abbas Mondoq said that private sector engagement is pivotal for development in Gilgit-Baltistan. This is the first run-of-the-river project in GB and if the project remains successful, the government will replicate future power projects on the same model.
There are reports that the project will be constructed on the Hunza River, near Ahmadabad village.
Gilgit-Baltistan has the potential to produce more than 45000 mega watt of hydro electricity. Pakistan’s total electricity demand from both residential and industrial is 25000 MW, if GB banks on its hydro power potential it can not only meet all requirement of the country, but also be in a position to export electricity to neighboring countries.
This milestone will unlock the massive opportunities available in this region, through the private sector led growth model Gilgit-Baltistan government will facilitate private sector investments in the region. Due to no legal cover for private sector investments, Gilgit-Baltistan so far didn’t have any large scale investments. PPP will now provide legal framework and facilitate large scale investment in the region.
Gilgit-Baltistan is currently Rely on 100% federal grant, the roll out of PPP will not only strengthen the revenue base of GB Government but also will reduce its dependency and burden on federal government budget. The advisor finance further added that more investment will be routed to the region through PPP mode in tourism and other sectors.