New Bong Escape HPP

The 84 MW New Bong Hydropower Project owned by Laraib Energy Ltd. is a subsidiary of the Hub Power Company. The Project achieved COD on 23 March 2013 and is the 1st independent hydel power producer of Pakistan and AJ&K paving the way for a fast expanding role of private sector in development of the Country's hydropower potential
The Project won international recognition and was awarded Middle East Renewable Deal of the Year 2009 by EuroMoney. It is Pakistan's first hydel project to be registered under CDM mechanism by UNFCCC. The project has had a long development phase of more than 14 years epitomizing the history of hydropower development in Pakistan.
Due to low oil prices there was high preference for thermal power projects in the 1990s that severely handicapped the development of hydel projects including the Project. There was also lack of clarity on how various Pakistan and AJ&K laws and Power Policies will apply on these projects. This saw a number of international sponsors come and go.
Hubco took a 75% stake in the project in 2008, a year in which global financial markets saw a lot of turmoil, there was also a rapid decline in the political and security situation in Pakistan thus making the job very difficult, however, the team continued with unmatched zeal and determination, and managed to raise additional financing, sign an EPC Contract, renegotiate financing package and achieve financial closing and also start construction in late 2009. Alhamdulillah it is highly satisfying that all these hurdles have been overcome by this Project in a most satisfactory manner, and the field is clear for other hydropower projects to follow in its footsteps.
IA was signed with GOP and AJ&K. 25 yr PPA with NTDC, Water Use Agreement with the GOAJK. As a BOOT project it will be transferred to the GOAJK free of cost at the end of 25 yr term. The completed project cost is USD 235 million.
The Project is a symbol of true public-private partnership including PPIB and AJ&K PPC that played key role in the development. Limited recourse financing for the Project was provided by the ADB, IDB IFC. Proparco and a consortium of local commercial banks NBP and HBL, The banks provided strong and patient support and Laraib owes its success to them.
Hydropower projects are highly site dependent and the construction phase was tough, however, the Project overcame many issues but still managed to achieve COD within 39 months some 3 months ahead of schedule. This was only made possible as a result of the experienced team, expert advices from such reputable engineering firms as MWH, NESPAK along with oversight by leading engineering firms Motts and URS.
Since commencement including testing energy, some 1 billion kWh of green energy has been supplied substantially surpassing PPA target.
The Project has certification from OHSAS and is proceeding with certification under DuPont Laraib runs an active Community Social Responsibility Program and has already spent Rs 80 million on community activities.
Laraib Energy is fully committed to achieve the highest international standards in its operations, resulting in value addition to shareholders' investment and to the nation as a whole.