ISLAMABAD, 1st December 2020:
Agreements signed today for construction of Azad Pattan Hydropower Project
as part of the China-Pakistan Economic Corridor (CPEC). With an investment
of over 1.35 billion dollars and 700.7 megawatts of electricity, the Azad
Pattan Project will involve no fuel import, enabling the country to move
towards cheaper and greener power generation. The Honorable Prime Minister
of Azad Jammu and Kashmir Raja Muhammad Farooq Haider Khan, Federal Minister
for Power Omer Ayub Khan, Federal Minister for Planning Asad Umar, Chairman
CPEC Authority, Lt. Gen (R) Asim Saleem Bajwa, Chief Secretary AJ&K Dr.
Shahzad Khan Bangash, Managing Director Private Power and Infrastructure
Board (PPIB) Shah Jahan Mirza, federal and provincial ministers, and others
attended the ceremony.
The project agreements comprising
GoAJ&K Implementation Agreement (GoAJ&K IA) and GoAJ&K Water Use Agreement (GoAJ&K
WUA) were signed by Mr. Zafar Mahmood Khan, Secretary Electricity AJ&K and
Mr. Li Xiaotao, CEO of Azad Pattan Power Private Limited. The Government of
Pakistan Implementation Agreement, Government of Punjab Water Use Agreement
and Tripartite Power Purchase Agreements of the Project had already been
signed in the presence of the Prime Minister of Pakistan in July this year.
Today’s development will further pave the way for achievement of Financial
Close of the Project.
Letter of Support (LOS) was issued by
PPIB to Azad Pattan HPP which is a Run-off-the River Scheme on River Jhelum
located at dual boundary between AJ&K (District Bagh) and Punjab (District
Rawalpindi). China Gezhouba Group and Laraib Group Pakistan are the
shareholders of the 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 while bringing in
valuable foreign direct investment, will provide energy of about 3,266 GWh
per year to the national grid by 2027.
The Project also 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, fees, 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 participants of the signing
ceremony appreciated the efforts of PPIB for efficient processing of
hydropower projects including the Azad Pattan Hydropower Project and urged
to continue facilitating investors in the same run for achieving optimum
results. Azad Pattan is a part of the fleet of four hydropower projects
being processed by PPIB under the CPEC banner out of which 720 MW Karot and
884 MW Suki Kinari hydropower projects are under construction while 1124 MW
Kohala project is under Financial Closing.