*ISLAMABAD: ** $3.7 billion to be injected in Pakistani economy under CPECmega projects, *The Economic Coordination Committee (ECC) of the cabinethas revealed.
ECC on Thursday allowed the Power Division to proceed with the developmentof Kohala and Azad Pattan hydroelectric power projects in a bid to pave theway for attracting $3.7 billion in investment under the China-PakistanEconomic Corridor (CPEC), Express Tribune has reported.
Work on these two power projects had come to a halt because of a row overdifferent issues.
The Kohala hydroelectric power project will be developed on Jhelum River inAzad Jammu and Kashmir (AJK) and is being implemented by Kohala HydropowerCompany Private Limited (KHCL) with China Three Gorges Corporation,International Finance Corporation (IFC) and Silk Road Fund as sponsors.
The Azad Pattan hydroelectric power project will be built on the dualboundary between Rawalpindi district (Punjab) and Sudhnoti district (AJK).It is being developed by Azad Pattan Power Private Limited (APPL) withChina Gezhouba Group Company (CGGC) as the sponsor.
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Work on Kohala project came to a halt following a row between Pakistangovernment and KHCL over e-flow from Jhelum River and it resulted indemobilisation of the contractor. The other issue was related to theloss/gain at a rate of 7% to be absorbed by KHCL, which the government ofPakistan had not agreed earlier.
Pakistan’s government had given its consent for 5% but it was later revisedupward to 7% following demand from the project company. The ECC had earlierapproved the minimum water flow and 7% foreign exchange loss and gain.
