PPIB SIGNS IMPLEMENTATION AGREEMENT FOR DEVELOPMENT OF 720 MW KAROT HYDROPOWER PROJECT
Private Power and Infrastructure Board (PPIB) and Karot Power Company hassigned Implementation Agreement for development and operation of 720 MW Karot Hydropower Project
.Managing Director, PPIB, Shah Jahan Mirza on behalf of Government of Pakistan and CEO Karot Power Company, Mr. Sheng Zhendong executed the Implementation Agreement here today in the PPIB office.The run of the river, priority project of China Pakistan Economic Corridor islocated at River Jhelum on the boundary between AJK (DisttKotli) and Punjab (Distt Rawalpindi) Punjab) having capability to generate clean, reliable and affordable 3.249 Billion units of electricity per year for the national grid. As per the feasibility study, the estimated cost of the project is 1698 million US $.Managing Director, PPIB said that the Government attaches top priority to generate electricity at affordable prices. In line with the policy of the government, PPIB is handling & facilitating the development of 26 projects of cumulative14000 MW comprising hydropower and coal based projectsto meet the future energy requirements. In addition, 3600 MW RLNG based projects in public sector are also being facilitated by PPIB.The Project is being developed by Karot Power Company Private Limited,comprising of M/s Three Gorges South Asia Investment Limited (TGSAIL),a subsidiary of China Three Gorges Corporation, China- CTGC, owner and operator of world’s biggest hydropower project i.e. 22500 MW China Three Gorges hydropower project, and Associated Technologies (Pvt) Ltd of Pakistan.The Project is being implemented on Build-Own-Operate-Transfer (BOOT) basis under provisions of power policy 2002.After commissioning/ completion of construction, the Project Company will operate and maintain the Project for thirty (30) years after which it will be transferred to the Government of Punjab at a notional price of one (01) Rupee. Further, during operation and maintenance of the Project, the Government of Punjab as well Government of AJ&K will receive 1380 million PKR per annum on account of water use charges.