Islamabad: The Economic Coordination Committee (ECC) on Thursday approved the development of the Kohala and Azad Pattan hydroelectric power projects that are expected to bring in investment worth USD 3.7 billion under the China-Pakistan Economic Corridor (CPEC) initiative, according to a news source.
The Kohala project will be developed at the Jhelum River in Azad Jammu and Kashmir (AJK), and is being executed by the Kohala Hydropower Company Private Limited (KHCL), along with three foreign companies as sponsors.
The Azad Pattan project will be constructed near Rawalpindi and Sudhnoti. It is being executed by the Azad Pattan Power Private Limited, with a Chinese company as a sponsor.
Previously, work on both the projects had been halted due to a number of reasons. However, now the development can be restarted again, following the ECC’s approval of a loss/gain rate of 7% for the project that is to be absorbed by the KHCL. Additionally, the ECC also approved the revised standard security package documents that include implementation agreements, a government guarantee, a power purchase agreement (PPA), and a water use agreement under the Power Generation Projects Policy 2002.
