720 MW Karot hydropower project : Implementation agreement signed
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ISLAMABAD: (APP) Private Power and Infrastructure Board (PPIB) and Karot Power Company has signed implementation agreement for development and operation of 720 megawatts Karot hydropower project.
Managing Director PPIB Shah Jahan Mirza on behalf of government of Pakistan and CEO Karot Power Company Sheng Zhendong executed the implementation agreement here Thursday in the PPIB office.
The run of the river, priority project of China Pakistan Economic Corridor is located at River Jhelum on the boundary between Azad Jammu and Kashmir (district Kotli) and Punjab (district Rawalpindi) and have capability to generate clean, reliable and affordable 3.249 billion units of electricity per year for the national grid. As per the feasibility study, the estimated cost of the project is US$ 1698 million.
Managing Director PPIB said that the government attaches top priority to generate electricity at affordable prices.
In line with the policy of the government, PPIB is handling and facilitating the development of 26 projects of cumulative 14000 megawatts comprising hydropower and coal based projects to meet the future energy requirements.
In addition, 3600 megawatts RLNG based projects in public sector are also being facilitated by PPIB.
This project is being developed by Karot Power Company comprising of M/s Three Gorges South Asia Investment Limited (TGSAIL), a subsidiary of China Three Gorges Corporation, China-CTGC, owner and operator of world's biggest hydropower project -22500 MW China Three Gorges hydropower project and Associated Technologies of Pakistan.
The project is being implemented on build-own-operate-transfer basis under provisions of power policy 2002.
After commissioning and completion of construction, the project company will operate and maintain the project for 30 years after which it will be transferred to the Government of Punjab at a notional price of one rupee.
Further, during operation and maintenance of the project, the government of Punjab as well as government of Azad Jammu and Kashmir will receive 1380 million rupees per annum on account of water use charges.
