Pakistan and China agree on 1,100 MW hydropower BOOT project

State-run companies of Pakistan and China have agreed tariff for the 1,100 MW Kohala Hydropower project in Azad Kashmir, Pakistan.

Pakistan's National Transmission and Dispatch Company (NTDC) and China International Water and Electric Corporation (CWE), a subsidiary of Three Gorges Corporation, have finalised a 30-year tariff at 7.9 cents per unit.

The project is located in Muzaffarabad District, Azad Jammu & Kashmir. The dam site is proposed just upstream of Domel on Jhelum River near Siran Village 174 km from Islamabad and powerhouse is located at Barsala 7 km upstream from Kohala Bridge. The dam and powerhouse will be connected through a tunnel.

The project will be developed on a build, own, operate and transfer (BOOT) basis by CWE. The project is scheduled to start operation in 2023 and generate about 5,093 gigawatt energy a year.

The total project investment is estimated at US$2.4 billion.

The objective of the project was to overcome Pakistan's power shortages through the construction of the 1,100MW Kohala Hydropower Project.

Earlier, Synergics Corporation of United States had given up the project after completing feasibility study during the tenure of General Musharraf when Pakistan offered it a tariff of 3.3 cents per unit even though the then power policy committed 4.7 cents per unit upfront tariff to investors.