$3.7 billion to be injected in Pakistani economy under CPEC mega projects

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$3.7 billion to be injected in Pakistani economy under CPEC mega projects

*ISLAMABAD: ** $3.7 billion to be injected in Pakistani economy under CPEC mega projects, *The Economic Coordination Committee (ECC) of the cabinet has revealed.

ECC on Thursday allowed the Power Division to proceed with the development of Kohala and Azad Pattan hydroelectric power projects in a bid to pave the way for attracting $3.7 billion in investment under the China-Pakistan Economic Corridor (CPEC), Express Tribune has reported.

Work on these two power projects had come to a halt because of a row over different issues.

The Kohala hydroelectric power project will be developed on Jhelum River in Azad Jammu and Kashmir (AJK) and is being implemented by Kohala Hydropower Company 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 dual boundary between Rawalpindi district (Punjab) and Sudhnoti district (AJK). It is being developed by Azad Pattan Power Private Limited (APPL) with China Gezhouba Group Company (CGGC) as the sponsor.

Work on Kohala project came to a halt following a row between Pakistan government and KHCL over e-flow from Jhelum River and it resulted in demobilisation of the contractor. The other issue was related to the loss/gain at a rate of 7% to be absorbed by KHCL, which the government of Pakistan had not agreed earlier.

Pakistan’s government had given its consent for 5% but it was later revised upward to 7% following demand from the project company. The ECC had earlier approved the minimum water flow and 7% foreign exchange loss and gain.