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.