ISLAMABAD: The government of Azad Jammu and Kashmir (AJK), China Three Gorges Corporation and Private Power and Infrastructure Board (PPIB) have signed a tri-party deal worth $2.4 billion to establish the 1,124-megawatt Kohala hydroelectric power project deal.
The power will be set up in AJK under the China-Pakistan Economic Corridor (CPEC) framework.
One of the largest investments in an independent power producer in Pakistan and AJK will provide over 5 billion units of low-cost clean electricity for consumers.
Praising the efforts of the board while presiding over the 127th meeting of PPIB, Federal Minister for Power Omar Ayub Khan informed that renewable energy, hydroelectric power and indigenous coal-based projects are prioritised as the government is determined to ensure long-term energy sustainability and reliability.
Speaking at the occasion, PPIB Managing Director Shah Jahan Mirza informed of a possible delay due to the spread of COVID-19. As a result of the sponsors requesting support from PPIB, the board has allowed extension in the validity of Letter of Support/ financial close date for the 1,124MW Kohala hydroelectric power project.
In addition, the board has allowed extension in the validity of Letters of Interest to the 640MW Mahl, 450MW Athmuqam and 82.25MW Turtonas-Uzghor hydroelectric power projects to cater to IPPs under the Indicative Generation Capacity Expansion Plan, with the consensus of all provinces and AJK.
The board will also provide support for Thar coal-based power generation projects and is working to acquire the required extension.
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