ISLAMABAD, 6th July 2020: The Power Sector of Pakistan witnessed another big day towards harnessing hydropower generation with the signing of project agreements for development of 700.7 MW Azad Pattan Hydropower today. This project is being processed under the banner of game changer China Pakistan Economic Corridor (CPEC) hence assumes added importance. Within a short period of ten days, two mega CPEC based hydropower projects have achieved major breakthrough which will contribute in accelerating development activities of these projects. Earlier, project agreements of 1124 MW Kohala Hydropower Project were signed on 25th June 2020. Honorable Prime Minister of Pakistan Imran Khan, Honorable Prime Minister of Azad State of Jammu and Kashmir (AJ&K) Raja Muhammad Farooq Haider Khan, Honorable Ambassador of Peoples Republic of China in Pakistan Yao Jin, Special Assistant to Prime Minister on Information and Broadcasting/Chairman CPEC Authority, Lt. Gen (R) Asim Saleem Bajwa, Managing Director Private Power and Infrastructure Board (PPIB) Shah Jahan Mirza, federal ministers, and others attended the ceremony.


The GoP Implementation Agreement (GoP IA) of the Project was signed by Shah Jahan Mirza MD PPIB. Similarly, Tripartite Power Purchase Agreement (TPPA) was signed by Waseem Mukhtar, CEO CPPA-G and Khwaja Riffat Hussain, MD NTDC while Government of Punjab Water Use Agreement (GoPb WUA) was signed by Capt (R) Saif Anjum, Secretary Irrigation, Punjab. On behlf of Azad Pattan project, all three agreements were signed by Li Xiaotao, CEO of Azad Pattan Power Private Limited. Today’s development will pave the way for achievement of Financial Close of the Project which is targeted to be achieved by 31st December 2020.


Azad Pattan HPP is a Run-off-the River Scheme on River Jhelum located at dual boundary between AJ&K (District Bagh) and Punjab (District Rawalpindi).  The weir exits at dual boundary and power house is located on left bank of the river in AJ&K. The power house comprises of four turbines having combined design discharge of 1260 cumec and gross head 64 meter, and upon completion it would be connected with national grid. China Gezhouba Group and Laraib Group Pakistan are the shareholders of Azad Pattan Hydropower Project. The consortium of lenders consists of China Development Bank, China Construction Bank, Industrial & Commercial Bank of China and Bank of China. Azad Pattan Project is being implemented by PPIB under the Policy for Power Generation Projects 2002 on built, own, operate and transfer (BOOT) basis for a term of 30 years after which it will be transferred to the GoAJ&K free of cost. The project will not only bring in valuable foreign direct investment of 1.35 billion US Dollars but will generate cheap and clean energy of about 3,265 GWh per year to the national grid by 2027.


The project will give multiple benefits besides generating power. It will play crucial role in stimulating local economy by providing employment and business opportunities during its construction periods. Furthermore, the Governments of AJ&K and Punjab will earn significant amount of revenue on account of taxes, fee etc while during operation period water use charges of approx. PKR 1.4 billion would be shared equally by both governments on annual basis. Moreover after completion of construction work, tourism activities around reservoir/lake and water sports, fishing etc. are also associated avenues for earning valuable revenue.


The Honorable Prime Minister while addressing the participants of the ceremony praised recent accomplishments and said the electricity and economy are critically linked to each other. The premiere also applauded the role of CPEC in the developed of Pakistan economy but particularly in the energy sector. The mega project would not only benefit China and Pakistan but the entire region, he added. The premiere also stressed on importance of hydro electricity which is a clean and green form of electricity thus can be the prime source towards reducing the generation cost. He remarked that due to introduction of reforms like ease of doing business and end of red tapism by our government, the confidence of global investors has been restored and they are now showing keen interest in establishing hydropower projects which is quite encouraging. He appreciated the pivotal role played by the Power Division lead by Omar Ayub, the governments of Punjab and AJ&K, PPIB and the CPEC Authority in achieving this landmark milestone. The Prime Minister assured full support of the government in implementing pipeline power generation projects including the 700.7 MW Azad Pattan Hydropower Project and expressed his belief that with proven track record of China Gezhouba Group, the Azad Pattan project will be completed in a timely manner.



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