• Thursday, July 27, 2017

Pakistan’s Karot Dam reaches $1.7b financial close

Discussion in 'CPEC' started by FalconsForPeace, Apr 3, 2017.

  1. FalconsForPeace

    FalconsForPeace RESEARCH & DEV

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    April 2, 2017: China Three Gorges South Asia Investment Limited said Friday (March 31), that it has achieved a financial close on the $1.7 billion 720-megawatt Karot hydroelectric power project and the second phase of a 100MW wind power project, from a group of Chinese investors and the International Finance Corporation (IFC). This is also marked as the first infrastructure deal under China’s One Belt One Road initiative. Other investors include Export-Import Bank of China, China Development Bank and Silk Road Fund. The wind power project costs $250 million, resulting in an aggregate cost of $1.95 billion. The project is partially funded by the International Finance Corporation (IFC) of the World Bank Group. Currently, China Three Gorges is developing six energy projects with an investment of $6 billion in Pakistan. The Karot hydropower project and the wind power initiative are part of the China-Pakistan Economic Corridor (CPEC) initiative and is also the first hydropower project being developed in Pakistan by China Three Gorges. It is located on the Jhelum River and it is the fourth among five hydroelectric power projects to be developed along the river.

    The project includes the construction of a 95m high dam, four headrace tunnels and a new public bridge across the river, as well as a substantial spillway structure to manage flood flows. Construction of the Karot scheme is due to be completed in 2021. The installed capacity of 720MW will consist of four units of 180MW each, with a mean annual output of 3206 gigawatt-hours. Its structure layout includes a rock-filled dam, spillway, powerhouse, diversion tunnels, head-race power tunnels and tail-race tunnel end. It is being developed under the Power Policy of 2002 on build, own, operate and transfer (BOOT) basis with five-year construction period and 30-year concession period. Its tfirst unit will commence power generation in 2020 will come online prior to the deadline. The company will hand over the project, which is 80 per cent in Punjab (powerhouse) and 20 per cent in Azad Jammu and Kashmir (reservoir), to the government of Pakistan after 30 years.

    Read more at: http://www.dealstreetasia.com/stories/69258-69258/
     
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  2. I S I

    I S I SENIOR MEMBER

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    :pakistan::china:
     
  3. tarrar

    tarrar SENIOR MEMBER

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    Good but whats the latest update on Bhasha dam?
     
  4. Fledgingwings

    Fledgingwings FULL MEMBER

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    Allah kare 2018 tak Bijli puri Hoooooooooo Jaaye
     
  5. Tesky

    Tesky BANNED

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    Construction to start this year...
     
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  6. Mo12

    Mo12 SENIOR MEMBER

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    China giving more loans to Pakistan means that it is confident of Pakistan government of repaying back all its debt I assume?
     
  7. Tesky

    Tesky BANNED

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    what loan? Did you read article?

    "It is being developed under the Power Policy of 2002 on build, own, operate and transfer (BOOT) basis with five-year construction period and 30-year concession period. Its tfirst unit will commence power generation in 2020 will come online prior to the deadline. The company will hand over the project, which is 80 per cent in Punjab (powerhouse) and 20 per cent in Azad Jammu and Kashmir (reservoir), to the government of Pakistan after 30 years."
     
  8. tarrar

    tarrar SENIOR MEMBER

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    INSHAALLAH
     
  9. Shotgunner51

    Shotgunner51 INT'L MOD

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    It's done by private sector not public sector, neither Pakistan nor China government has anything to do with the funding (asset/liabilities) and operational financials (profits/loss), very typical PPP (Public Private Partnership).
    http://www.investopedia.com/terms/p/public-private-partnerships.asp
    That's correct. This company (China Three Gorges South Asia Investment Limited) will BOT (a typical form of PPP, or BOOT as described in the article) the project, hence they are the entity to raise money (the $1.7 billion) from a consortium of financial institutions.
     
    Last edited: Apr 6, 2017
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  10. ziaulislam

    ziaulislam SENIOR MEMBER

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    and than stop next year and restart again in 2023 during next election
    it would be another NJ, plague with delays and cost over runs
     
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