A consortium that includes the Yangtze Three Gorges Technology & Economic Development Co. and China Machinery Engineering Corp. has been awarded a US$1.277 billion engineering, procurement and construction contract for Pakistan’s 720-MW Karot hydropower plant.
The project will be operated by Karot Power Company Ltd. and will be located on the Jhelum River east of Islamabad. The project will be financed on a commercial basis, with costs now anticipated to exceed $1.98 billion.
HydroWorld.com reported in April that the People’s Bank of China, The Silk Road Fund and the World Bank will buy shares in China Three Gorges South Asia Investment Ltd., a subsidiary of China’s Three Gorges Corporation. Other financiers of this project include the Export-Import Bank of China and the China Development Bank will issue loans to the Karot Power Company, a subsidiary of China Three Gorges South Asia Investment.
Work on the Karot facility is expected to start by the end of the year, with completion by 2020. Energy generated at the plant will be sold to the National Transmission and Dispatch Company under a 30-year power purchase agreement.
Construction on the plant is expected to begin by the end of the year, with completion scheduled for 2020.
The project is being developed under the Power Policy 2002 on a build-own-operate-transfer basis, with an expected concession period of about 35 years, which includes the construction period of five years and the operation period of 30 years.
The site started to be investigated for development in 2006, at a capacity of 240 MW.
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