The Private Power and Infrastructure Board (PPIB) and Power Universal Investment Co. Ltd, Dubai UAE, a subsidiary of China Gezhouba Group Company Limited, on Thursday executed Letter of Support (LoS) for development of 640 MW of Azad-Pattan Hydropower Project. Execution/Signing of the LoS will lead to further development, financing, construction and subsequently operation of the Project.
The 640 MW Azad-Pattan Hydropower Project is a run of the river hydropower project located on River Jhelum on the dual boundary of Azad Jammu and Kashmir and Punjab with a capability to generate clean, reliable and affordable 3.075 billion units of electricity per year to the national grid. The Project is located very close to the load center and will be connected to the national grid through a 500 kV transmission line.
As the government attaches top priority to generate electricity at affordable prices utilising indigenous resources like coal and hydro, this project assumes further importance. In line with the policy of the government, PPIB is handling and facilitating the development of this project for its timely completion to meet the future energy requirements.
The project is being developed by Power Universal Investment Co. Ltd, Dubai UAE, a subsidiary of China Gezhouba Group Company Ltd and Laraib Group from Pakistan. The project will be implemented on Build-Own-Operate-Transfer (BOOT) basis under the provisions of Power Policy 2002.
After commissioning, the project company will operate and maintain the project for 30 years after which it will be transferred to the government of AJ & K at a notional price of Re 1. Further, during operation and maintenance of the project, the governments of AJ & K and Punjab will receive Rs 1.306 billion every year on account of water use charges which will be shared equally between governments of AJ & K and Punjab. After transfer of the project to AJ & K, the government of Punjab will receive full amount of water use charges i.e. Rs1.306 billion/annum.
