ISLAMABAD — The Executive Committee of the Special Investment Facilitation Council (SIFC) has recommended that the Power Division stay engaged with state-owned Korean companies to prevent potential diplomatic issues.
Sources informed Newzshewz that concerns have been raised regarding the treatment of Korean companies involved in hydropower projects in Khyber Pakhtunkhwa. These companies have invested millions of dollars in proposed projects but claim they are not receiving fair treatment.
In a letter addressed to Power Minister Sardar Awais Leghari, the Korean Embassy highlighted the efforts of KOEN, a major state-owned Korean entity in global power generation. KOEN is currently working on two significant hydropower projects in Swat: the 229 MW Asrit-Kedam and the 238 MW Kalam-Asrit projects. These projects have made considerable progress, including the completion of feasibility studies, obtaining regulatory approvals, environmental clearances, and submission of tariff petitions.
Despite making continuous efforts to meet with the Federal Minister for Energy (Power Division) to address pending issues, KOEN has yet to secure a meeting. KOEN has expressed a desire to engage in constructive dialogue with the minister to expedite the development of the projects.
Additionally, Park Ki-Jun, the Ambassador of the Republic of Korea, has formally requested a meeting with the Minister for Energy to further strengthen bilateral economic ties between Korea and Pakistan. Although the Embassy has previously attempted to arrange a meeting, no date has been set, and the Embassy has called on the Ministry to facilitate the scheduling of this meeting at the earliest.
KOEN, which initiated an FDI of USD 1 billion in 2018, has made substantial investments in these hydropower projects, which are now at an advanced stage of development. The company has completed detailed feasibility studies, secured necessary approvals from local authorities, and filed tariff petitions with NEPRA in June 2022. A public hearing was held in July 2023 for both projects.
To expedite progress, KOEN has sought the Minister’s guidance and support, but these requests have not yet been fulfilled.
In response to the situation, the SIFC Executive Committee has directed the Power Division to finalize the status of 47 Letter of Intent (LoI) holders for hydropower projects. A final status report on these LoIs is expected to be shared with SIFC by January 15, 2025.
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