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$2.4 BILLION HYDROELECTRIC PROJECTED TO BE INITIATED UNDER CPEC

The government of Azad Jammu and Kashmir (AJK) has signed an agreement with China Three Gorges Corporation and Private Power and Infrastructure Board (PPIB) for the development of Kohala hydroelectric power project.

1124 megawatt of hydroelectric energy project will be launched under the umbrella of CPEC (China-Pakistan Economic Corridor) with the coordination of China in Azad Jammu and Kashmir (AJK). The project is estimated to produce more than five billion units of clean and low-cost electricity every year. With a $2.4 billion initial investment, this is one of the largest investments in an independent power producer (IPP) in Pakistan as well as in AJK. Another hydropower project – the 102MW Gulpur project – at Poonch River in Kotli district has been operational since March this year.

The prime minister of AJK, Omar Ayub Khan has chaired the committee of PPIB and has lauded over the board’s contributions for the energy sector and role in enhancing hydroelectric power generation. He said that the government is looking for long-term energy sustainability and reliability for which renewable energy, hydroelectric power, and indigenous coal-based projects are being prioritized.

During the meeting, PPIB managing director (MD), Shah Jahan Mirza, briefed the board on the status of upcoming IPPs, saying that various projects might miss the deadline due to the coronavirus restrictions.

The board also extended the validity of the Letter of Support/ financial close date for the 1,124 MW Kohala hydroelectric power project. The board has also appreciated the contribution by the government of Pakistan and a powerful stance to improve the country’s power sector like thermal and hydroelectric power projects respectively. The initiative of the 1124 MW hydroelectric power generation project will enhance the country’s development and power projects in an upward direction.

 

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