A historic tripartite agreement has been signed between Government of Pakistan (GoP), Government of Azad and Jammu and Kashmir (AJ&K) and Chinese company M/s Three Gorges Corporation for the construction of the 1,124-megawatt (MW) Kohala Hydropower Project with an estimated cost of $2.4 billion.
This is the largest power sector investment of the country in a single Independent Power Producer (IPP) till date and will create 5000 direct jobs.
1124 MW Kohala Hydropower Project is located on river Jhelum in Azad Jammu & Kashmir is being developed by Kohala Hydropower Company Limited (KHCL) with China South Asia Investment Limited (CSAIL)(the main sponsor), China Three Gorges Corporation, IFC and Silk Road Fund as sponsors of the project under policy for Power Generation Projects 2002 on Build, Own, Operate and Transfer (BOOT) basis.
While addressing the signing ceremony Prime Minister Imran Khan said that “Prices have gone up due to generation of electricity from imported fuel. Generating electricity from oil also affects the environment. Therefore government has focused on clean energy instead of imported fuel. The project will create thousands of much needed employment opportunities in Azad Kashmir,” he added.
Prime Minister Imran Khan, Federal Ministers, Chinese Ambassador Yao Jing Chairman China Pakistan Economic Corridor (CPEC) Authority Lt Gen (R) Asim Saleem Bajwa and representatives of China’s Three Gorges Company.