Chinese Silk Road Fund and China Three Gorges have entered into a deal with Pakistan Private Power and Infrastructure Board for developing a hydropower project in Pakistan.
The Karot hydropower project will involve an investment of around $1.65bn, and is the first one to receive capital support from China’s $40bn Silk Road Fund under the Belt and Road initiative, reports Xinhua.
The project, which is likely to be initiated in 2015, is expected to be operational within five years. It will be considered as a priority project under the Economic Corridor initiative taken up by the two Asian countries.
Once operational, the facility will have an installed capacity of 720MW.
Situated on the Jhelum River in Kahuta tehsil in Rawalpindi district, the hydro energy project is likely to supply 3.213 billion kW-hours of power every year.
Export-Import Bank of China and other financial institutions will also offer loans for the hydropower development in the country.
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By GlobalDataThe project will initially be operated by China for 30 years, following which, it will pass over to the Pakistan government.
Besides the Karot hydropower project, the Chinese Silk Road Fund, China Three Gorges and other investors intend to boost the hydropower generating capacity in Pakistan by nearly 3,350MW.
