- Run-of-the-river project to generate 3.249 billion units of electricity per annum for national grid
The Private Power and Infrastructure Board (PPIB) and the Karot Power Company have signed an agreement for development and operation of the 720 MW Karot Hydropower Project.
PPIB Managing Director Shah Jahan Mirza on behalf of the government of Pakistan and Sheng Zhendong, the CEO of the Karot Power Company, signed the agreement.
The Karot power project, a run-of-the-river project of the China-Pakistan Economic Corridor, is located at Jhelum river, on the boundary between Kotli district, Azad Kashmir and Rawalpindi district in Punjab province.
The project has the capability to generate 3.249 billion units of electricity per annum for the national grid. As per the feasibility study, the estimated cost of the project is $ 1.69 billion.
The project is being developed by the Karot Power Company Private Limited, comprising Three Gorges South Asia Investment Limited (TGSAIL), a subsidiary of China Three Gorges Corporation, China-CTGC, owner and operator of the world’s biggest hydropower project and Associated Technologies Limited of Pakistan. The project is being implemented on build-own-operate-transfer (BOOT) basis under provisions of the Power Policy, 2002.
After the completion of construction work, the company will operate and maintain the project for thirty years after which it will be transferred to the government of Punjab on a notional price of one rupee. Furthermore, during the operation and maintenance of the project, the Punjab government as well the AJK government will receive Rs 1,380 million per annum on account of water use charges.
The PPIB managing director said the government attached top priority to power generation at affordable prices.
In line with the policy of the government, the PPIB is handling and facilitating the development of 26 projects of cumulative 14,000 MW comprising of hydropower and coal-based projects to meet the future energy requirements. In addition, 3600 MW RLNG-based projects in the public sector are also being facilitated by the PPIB.