Prime Minister Nawaz Sharif said on Wednesday that his government was working on several short- and long-term projects of power generation and welcomed the keen interest of foreign investors in this key sector.
He was talking to a delegation of China Three Gorges Corporation who called on him prior to inking of two Memorandums of Understanding at the PM House.
The prime minister said his government was offering public private-partnership on equity basis on several of the on-going and future power projects as it seriously wanted to put an end to power crisis having a negative impact on country’s agricultural and industrial growth.
The delegation informed the prime minister of various projects it was working on in Pakistan and its future plans. China Three Gorges Corporation (CTG) – a state-owned enterprise of the government of China – was owner operator of the world’s largest hydropower project, Three Gorges Project, with a total installed capacity of 22,500 MW.
CTG was investing in Pakistan and has created an investment arm called CWE Investment Corp. (CWEI), CWEI Hong Kong Investment Company (CWEI HK) and China Three Gorges South Asia Investment Limited (CTGSAIL).
Sharif was informed that the CTG through its subsidiaries CWEI, CWEI HK and CTGSAIL were developing three hydropower projects in private sector through private power and infrastructure Board.
These include 1100 MW Kohala Hydropower Project, 720 MW Karot Hydropower Project and 590 MW Mahl Hydropower Project. Two of these projects – Karot and Kohala are included in China Pakistan Economic Corridor (CPEC). He was informed that all these projects were at an advance stage of development, having an investment of around US$ 5 billion.
The Chinese company was currently working on 720 MW Karot Hydropower on JhelumRiver. The 1100 MW Kohala Hydropower Project was also located on JhelumRiver in district Muzaffarabad, AJK, and a letter of support was expected to be issued shortly by PPIB following approval of feasibility tariff by NEPRA.
Later in the day, Pakistan and China signed two memorandums of understanding for promotion of cooperation in water and power sector.
The documents were signed by WAPDA Chairman Zafar Mehmoud and Chinese Three Gorges Corporation Chairman Chun Lu.
The first MOU relates to cooperation in construction of water reservoirs and hydel generation. Both the countries will also enhance cooperation in education and training in the respective field under the second MoU.