ISLAMABAD: A tripartite agreement was signed on Thursday between a Chinesecompany and the governments of Pakistan and China for the construction ofthe 1,124-megawatt (MW) Kohala Hydropower Project costing $2.4 billion.
The signing ceremony was held at the Prime Minister (PM) Office inIslamabad and was witnessed by PM Imran Khan, Azad Jammu and Kashmir PrimeMinister Raja Farooq Haider, federal cabinet members, Chinese Ambassador inPakistan Yao Jing, China Pakistan Economic Corridor (CPEC) AuthorityChairman Asim Saleem Bajwa and representatives of the concerned Chinesecompany.
The $2.4 billion Kohala Hydropower Project is Pakistan’s largest powersector investment in a single Independent Power Producer (IPP) till date.
The project is being built on River Jhelum in Azad Kashmir under CPEC andhas been awarded to Kohala Hydropower Company Ltd (KHCL), which is asubsidiary of China Three Gorges Corporation (CTGC).
Addressing the signing ceremony, Prime Minister Imran Khan said that theKohala Hydropower Power Project was the biggest ever investment in Pakistanon a single project.
He added that the project can potentially initiate a move towards cleanenergy and Pakistan’s dependence on imported fuel.
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He said that the country was progressing well when it had been producinghydropower until it started banking on imported fuel which not only madethe local industry uncompetitive but also put additional burden on foreignreserves.
The prime minister said that power generation through imported fuel alsoadversely impacted the environment as Pakistan was among the top ninecountries worst hit by climate change which necessitated the promotion ofclean energy.
The prime minister informed that the project would also create much-neededjobs through its construction and later through its operation.
