A Tripartite Agreement of $2.4 billion Kohala Hydropower Project under CPEC signed today

[RealNapster]

A major milestone towards the successful implementation of 1,124MW Kohala Hydropower Project in Azad Jammu and Kashmir (AJK) under CPEC framework is achieved as a Tripartite Agreement signing ceremony between a Chinese company, governments of Pakistan and AJK held today. Prime Minister Imran Khan witnessed signing ceremony and said US $ 2.4 billion investment in Kohala Hydropower project under CPEC is the biggest Foreign Direct Investment (FDI) in Pakistan.

The other projects signed included 700MW Azad Pattan hydropower project, 300MW Ashkot hydropower project, 640MW Mahl hydropower project, 450MW Athmuqam hydropower project, 82MW Turtonas-Uzghor hydropower project, 163MW Grange Power. Ltd.

PM further asserted the Kohala Hydropower project will promote regional development and uplift the socio-economic status of people in AJK by creating more jobs. The project would create clean energy, environmental benefits and reduce dependence on furnace oil import which creates current account deficit. Chairman CPEC authority Lt. Gen. (R) Asim Saleem Bajwa has said that it is the largest power sector investment of $2.4 billion in a single Independent Power Producer (IPP).

Prime Minister’s commitment to expedite work on CPEC projects and hard work of all stakeholders has played a significant role to achieve this milestone.

Special Assistant to Prime Minister on Information Lt Gen (r) Asim Saleem Bajwa revealed on Thursday that the tripartite agreement signing ceremony for Kohala Hydel Power Project will be held today.

SAPM Bajwa said that it was a “historic day” as it is the largest power sector investment of $2.4 billion in a single Independent Power Producer (IPP).

“With PM Imran’s clear direction to expedite CPEC projects,all stake holders worked hard to bring this day,” tweeted SAPM Bajwa on Thursday.

The work on China-Pakistan Economic Corridor (CPEC) funded Kohala Hydropower Project has been in jeopardy since last year as the Chinese contractor has been demobilised following controversy over downstream environmental flows.

The 1,124MW (megawatt) Kohala Hydropower Project, being built on Jhelum River in Azad Kashmir under CPEC, has been awarded to Kohala Hydropower Company Ltd (KHCL), which is a subsidiary of China Three Gorges Corporation (CTGC).

Jun 25 (APP): A tripartite agreement was signed here Thursday between a Chinese company and the governments of Pakistan and China for construction of 1,124 megawatt Kohala Hydropower Project costing $2.4 billion.

The signing ceremony, held at PM Office, was witnessed by Prime Minister Imran Khan, Azad Jammu and Kashmir Prime Minister Raja Farooq Haider, federal cabinet members, Chinese Ambassador in Pakistan Yao Jing, China Pakistan Economic Corridor (CPEC) authority, Chairman Lt. Gen. (R) Asim Saleem Bajwa and representatives of Chinese company.

It is the largest power sector investment of $2.4 billion in a single Independent Power Producer (IPP).

Kohala Hydropower Project, being built on Jhelum River in Azad Kashmir under CPEC, has been awarded to Kohala Hydropower Company Ltd (KHCL), which is a subsidiary of China Three Gorges Corporation (CTGC).

Addressing the signing ceremony, the prime minister while terming the agreement a “great step” towards foreign investment, said Pakistan should have invested in hydro power sector far earlier.

He said the country was progressing well when it had been producing hydro power until it started banking on imported fuel which not only made the local industry non-competitive but also put additional burden on foreign reserves.

The prime minister said the power generation through imported fuel generation also adversely impacted the environment as Pakistan was among nine countries to get worst hit by climate change which necessitated the promotion of clean energy.

The prime minister said Kohala Hydropower Power Project drew the biggest ever investment in Pakistan on a single project.

Pakistan welcomed the investment as it could also set a trend for the country Pakistan to further move towards clean energy for reducing dependence on imported fuel.

The prime minister told the AJK prime minister that the project would also create much-needed jobs for youth both during the construction as well as the operations.

 

[RealNapster]

The other projects signed included 700MW Azad Pattan hydropower project, 300MW Ashkot hydropower project, 640MW Mahl hydropower project, 450MW Athmuqam hydropower project, 82MW Turtonas-Uzghor hydropower project, 163MW Grange Power. Ltd

@Zibago, @Moonlight, @Imran Khan, @Syed1.

 

[Hakikat ve Hikmet]

A great development...

India is fighting to save her a$$ while Pak is talking $$....

 

[RealNapster]

A great development...

India is fighting to save her a$$ while Pak is talking $$....

There is still this issue.
1. These are IPP's and government provude some return guarantee. Which is not good as we saw what it can lead to incase of arbitration. Should have went for BOT.
2. All these are RunOffRiver dams. We also need dams with reservoirs too. And soon. To built our water storage of atleast 60 days which now a days is less then a month. So after these dams signed, government should now try to get investment for reservoir dams.

 

[The Accountant]

There is still this issue.
1. These are IPP's and government provude some return guarantee. Which is not good as we saw what it can lead to incase of arbitration. Should have went for BOT.
2. All these are RunOffRiver dams. We also need dams with reservoirs too. And soon. To built our water storage of atleast 60 days which now a days is less then a month. So after these dams signed, government should now try to get investment for reservoir dams.

Agreed with your points, with respect to reservoir I think mohmand dam and bhasha dam work is initiated. Furthermore, a barrage in lower sindh is also under study but the real addition to this will be skardu dam which is still on paper

Furthermore, Kohala was supposed to be BOT contract. I am not sure it is miss reporting or change in terms of contract.

Most probably its miss reporting as our journalist are not aware of difference in technical terms.

 

[RealNapster]

Agreed with your points, with respect to reservoir I think mohmand dam and bhasha dam work is initiated. Furthermore, a barrage in lower sindh is also under study but the real addition to this will be skardu dam which is still on paper

Furthermore, Kohala was supposed to be BOT contract. I am not sure it is miss reporting or change in terms of contract.

Most probably its miss reporting as our journalist are not aware of difference in technical terms.

Katzara dam (always confused with skardu dam) is a really big project estimated to produce 15000 MW and 35 MAF storage, also it will have a lifespan of 1000 years but, its not part of vision 2025 which means we will see some solid progress only after 2025. By then it will be too late. If we start connstruction work on that dam in 2025, we wont be able to complete it by 2032 atleast. Mohammand and basha (when completed) will reduce our existing water shortage, but by then our demand would have also increased (new housing socueties, increase in population etc). So the ultimate impact will be very little. We should be working on atleast 30 MAF combined water projects simultaneously.

And yes, atleast 4-5 major barrages and canals from indus in Sindh. That will increase sindhs water share out of the water which is wasted each year....

 

[The Accountant]

Katzara dam (always confused with skardu dam) is a really big project estimated to produce 15000 MW and 35 MAF storage, also it will have a lifespan of 1000 years but, its not part of vision 2025 which means we will see some solid progress only after 2025. By then it will be too late. If we start connstruction work on that dam in 2025, we wont be able to complete it by 2032 atleast. Mohammand and basha (when completed) will reduce our existing water shortage, but by then our demand would have also increased (new housing socueties, increase in population etc). So the ultimate impact will be very little. We should be working on atleast 30 MAF combined water projects simultaneously.

And yes, atleast 4-5 major barrages and canals from indus in Sindh. That will increase sindhs water share out of the water which is wasted each year....

Agreed, but that means a lot of funding where we are already in a huge budget deficit. Current account was getting under control but due to corona now future is very much uncertain.

Lets hop sanity prevails and we start working on Katzara dam.

 

[RealNapster]

Agreed, but that means a lot of funding where we are already in a huge budget deficit. Current account was getting under control but due to corona now future is very much uncertain.

Lets hop sanity prevails and we start working on Katzara dam.

Such projects through out the world are financed by private investors in form of Ipp, BOT, BOOT etc. Its only in Pakistan that our govt take loans and use 25% of those loans on such projects.. And remaining 75% on other things.

 

[The Accountant]

Such projects through out the world are financed by private investors in form of Ipp, BOT, BOOT etc. Its only in Pakistan that our govt take loans and use 25% of those loans on such projects.. And remaining 75% on other things.

Our private sector is busy gamblong in stock market and real state. They dont have time for investment which can take a decade to generate cash flows.

Furthermore whole of the income from these will be official white money which will again be problem for our patriotic saiths.

 

[alee92nawaz]

A major milestone towards the successful implementation of 1,124MW Kohala Hydropower Project in Azad Jammu and Kashmir (AJK) under CPEC framework is achieved as a Tripartite Agreement signing ceremony between a Chinese company, governments of Pakistan and AJK held today. Prime Minister Imran Khan witnessed signing ceremony and said US $ 2.4 billion investment in Kohala Hydropower project under CPEC is the biggest Foreign Direct Investment (FDI) in Pakistan.

The other projects signed included 700MW Azad Pattan hydropower project, 300MW Ashkot hydropower project, 640MW Mahl hydropower project, 450MW Athmuqam hydropower project, 82MW Turtonas-Uzghor hydropower project, 163MW Grange Power. Ltd.

PM further asserted the Kohala Hydropower project will promote regional development and uplift the socio-economic status of people in AJK by creating more jobs. The project would create clean energy, environmental benefits and reduce dependence on furnace oil import which creates current account deficit. Chairman CPEC authority Lt. Gen. (R) Asim Saleem Bajwa has said that it is the largest power sector investment of $2.4 billion in a single Independent Power Producer (IPP).

Prime Minister’s commitment to expedite work on CPEC projects and hard work of all stakeholders has played a significant role to achieve this milestone.

Special Assistant to Prime Minister on Information Lt Gen (r) Asim Saleem Bajwa revealed on Thursday that the tripartite agreement signing ceremony for Kohala Hydel Power Project will be held today.

SAPM Bajwa said that it was a “historic day” as it is the largest power sector investment of $2.4 billion in a single Independent Power Producer (IPP).

“With PM Imran’s clear direction to expedite CPEC projects,all stake holders worked hard to bring this day,” tweeted SAPM Bajwa on Thursday.

The work on China-Pakistan Economic Corridor (CPEC) funded Kohala Hydropower Project has been in jeopardy since last year as the Chinese contractor has been demobilised following controversy over downstream environmental flows.

The 1,124MW (megawatt) Kohala Hydropower Project, being built on Jhelum River in Azad Kashmir under CPEC, has been awarded to Kohala Hydropower Company Ltd (KHCL), which is a subsidiary of China Three Gorges Corporation (CTGC).

Jun 25 (APP): A tripartite agreement was signed here Thursday between a Chinese company and the governments of Pakistan and China for construction of 1,124 megawatt Kohala Hydropower Project costing $2.4 billion.

The signing ceremony, held at PM Office, was witnessed by Prime Minister Imran Khan, Azad Jammu and Kashmir Prime Minister Raja Farooq Haider, federal cabinet members, Chinese Ambassador in Pakistan Yao Jing, China Pakistan Economic Corridor (CPEC) authority, Chairman Lt. Gen. (R) Asim Saleem Bajwa and representatives of Chinese company.

It is the largest power sector investment of $2.4 billion in a single Independent Power Producer (IPP).

Kohala Hydropower Project, being built on Jhelum River in Azad Kashmir under CPEC, has been awarded to Kohala Hydropower Company Ltd (KHCL), which is a subsidiary of China Three Gorges Corporation (CTGC).

Addressing the signing ceremony, the prime minister while terming the agreement a “great step” towards foreign investment, said Pakistan should have invested in hydro power sector far earlier.

He said the country was progressing well when it had been producing hydro power until it started banking on imported fuel which not only made the local industry non-competitive but also put additional burden on foreign reserves.

The prime minister said the power generation through imported fuel generation also adversely impacted the environment as Pakistan was among nine countries to get worst hit by climate change which necessitated the promotion of clean energy.

The prime minister said Kohala Hydropower Power Project drew the biggest ever investment in Pakistan on a single project.

Pakistan welcomed the investment as it could also set a trend for the country Pakistan to further move towards clean energy for reducing dependence on imported fuel.

The prime minister told the AJK prime minister that the project would also create much-needed jobs for youth both during the construction as well as the operations.

We are facing loadshedding agaim after 3 3 years. Don't know where the extra electric power is going?

 

[RedHulk]

Why this project is IPP when resources are natural and Govt own the land .IPP need to own the land and the supply their own production resources in return they supply electricity. If this is IPP project then it will put burden on people of Pakistan on IPP terms.

Katzara dam (always confused with skardu dam) is a really big project estimated to produce 15000 MW and 35 MAF storage, also it will have a lifespan of 1000 years but, its not part of vision 2025 which means we will see some solid progress only after 2025. By then it will be too late. If we start connstruction work on that dam in 2025, we wont be able to complete it by 2032 atleast. Mohammand and basha (when completed) will reduce our existing water shortage, but by then our demand would have also increased (new housing socueties, increase in population etc). So the ultimate impact will be very little. We should be working on atleast 30 MAF combined water projects simultaneously.

And yes, atleast 4-5 major barrages and canals from indus in Sindh. That will increase sindhs water share out of the water which is wasted each year....

Katzara Dam is not going to happen as we will have to evacuate whole skardu valley. More over if any damage happened to it, will flood whole Pakistan.

 

[The Accountant]

Why this project is IPP when resources are natural and Govt own the land .IPP need to own the land and the supply their own production resources in return they supply electricity. If this is IPP project then it will put burden on people of Pakistan on IPP terms.


Katzara Dam is not going to happen as we will have to evacuate whole Hunza valley. More over if there damage happened it will flood whole Pakistan.

Man, do you know what are you talking about ? Hunza valley and skardu valley are away from each other by atleast 6 hour drive? Some portion of Skardu city will be effected including the Skardu airport which also serve as a strategic PAF base however, no other area will be effected.

 

[RealNapster]

We are facing loadshedding agaim after 3 3 years. Don't know where the extra electric power is going?

Distribution losses.

The system needs a complete overhaul. Will cost no less then 10 billion dollars.

to evacuate whole Hunza valley. More over if there damage happened it will flood whole Pakistan

I was reading about it and it was stated that though the skardu city is upstream but still the reservoir will be so large that whole (or was it half, sorry cant remember) of skardu city will be under water. Thats why they were thinking of downscaling the dam. Relocation cost will be more then that of the dam itself

 

[The Accountant]

Distribution losses.

The system needs a complete overhaul. Will cost no less then 10 billion dollars.



I was reading about it and it was stated that though the skardu city is upstream but still the reservoir will be so large that whole (or was it half, sorry cant remember) of skardu city will be under water. Thats why they were thinking of downscaling the dam. Relocation cost will be more then that of the dam itself

Thats skardu city. The Dam is 15 km downstream. THe biggest problem of relocation is with the airport which is further towards the Dam and is very important for defnse of the area. The airport is surrounded by huge mountains and is strategically a very secured base. So unless we get a similar location for this strategic airport the decision will remain in limbo.

 

[RedHulk]

My mistake. Mixed Skardu with Hunza. Read about it 2011. Going to edit it.

Man, do you know what are you talking about ? Hunza valley and skardu valley are away from each other by atleast 6 hour drive? Some portion of Skardu city will be effected including the Skardu airport which also serve as a strategic PAF base however, no other area will be effected.