ISLAMABAD: Private Power and Infrastructure Board (PPIB) and Karot Power Company on Thursday signed the Implementation Agreement for development and operation of 720 MW Karot Hydropower Project. Managing Director, PPIB, Shah Jahan Mirza on behalf of Government of Pakistan and CEO Karot Power Company, Sheng Zhendong executed the Implementation Agreement.
The run of the river, priority project of China Pakistan Economic Corridor is located at River Jhelum on the boundary between AJK (Distt Kotli) and Punjab (Distt Rawalpindi) Punjab) and has the capability to generate clean, reliable and affordable 3.249 Billion units of electricity per year for the national grid. As per the feasibility study, the estimated cost of the project is US $1,698 million.
Managing Director PPIB said that the Government attaches top priority to generate electricity at affordable prices. In line with the policy of the government, PPIB is handling and facilitating the development of 26 projects of cumulative 14000 MW comprising hydropower and coal based projects to meet future energy requirements. In addition, 3,600 MW RLNG based projects in public sector are also being facilitated by PPIB.
The Project is being developed by Karot Power Company Private Limited, comprising of M/s Three Gorges South Asia Investment Limited (TGSAIL), a subsidiary of China Three Gorges Corporation, China- CTGC, owner and operator of world’s biggest hydropower project i.e. 22500 MW China Three Gorges hydropower project, and Associated Technologies (Pvt) Ltd of Pakistan.The Project is being implemented on Build-Own-Operate-Transfer (BOOT) basis under provisions of power policy 2002.
After commissioning/ completion of construction, the Project Company will operate and maintain the Project for thirty (30) years after which it will be transferred to the Government of Punjab at a nominal price of Rs 1. Further, during operation and maintenance of the Project, the Government of Punjab as well Government of AJ&K will receive 1,380 million PKR per annum on account of water use charges.
