Sinosure, a major Chinese insurance company has shown visible interest in the implementation of 700-MW Azad Pattan Hydropower Project and 1124-MW Kohala Hydropower Project worth billions of dollars on the guidance from Beijing. The government of Pakistan had been making efforts for the commencement of both of these significant hydel power projects but the said insurance company was hesitant on approving the projects due to increases circular debt and delay in the payments of existing related companies.
Minister for Planning, Development and Special Initiatives expressed his concerns over the delay in initiation of these projects and had a meeting with the bosses of related Chinese companies. He is said to have received a positive response from the Chinese leadership.
Pakistan embassy followed up to the meeting discussed earlier, and highlighted that the outcome of the meeting is as follows (i) Sinosure has received necessary guidance from the Government of China for the implementation of Azad Patan and Kohala HPP; (ii) Pakistan is to urge the Chinese investors/ enterprises to submit Letter of Intent (LoI) for these projects; (iii) LoI for Azad Pattan, submitted by China Gezhouba Group Company (CGGC) in April 2023 has expired. There is a need to submit a new LoI, (iv) Sinosure had not received any application either by China Three Gorges (CTG) or any other company for the Kohala HPP. therefore, CTG is needed to be approached to submit the application/ LoI, and (v) Sinosure shared that the Chinese investor/ enterprise(s) must resubmit an economic feasibility report while incorporating arrears in it.
