Pakistan Karot hydropower station is fully put into commercial operation
On June 29, the karot hydropower project in Pakistan was put into full commercial operation. The project has an investment of 1.74 billion US dollars and will provide electricity to more than 7 million households after it is put into use.
The development partner of Pakistan karot hydropower project is China Three Gorges Group Co., Ltd., headquartered in Beijing. Karot hydropower station is a landmark project under the “the Belt and Road” initiative and the first project financed by the Silk Road Fund. The silk road investment fund, established with the support of China, has a capital of US $40billion and aims to support the “the Belt and Road”, a large-scale international infrastructure development and trade facilitation plan.
Karot hydropower station is the fourth of the five cascade hydropower stations planned to be built on the Jhelum River, which can provide 3.174 billion kWh (net) of power every year, and the project will be sold to Pakistan National transmission and distribution company in accordance with the 30-year power purchase agreement.
The dam is about 95 meters high and 460 meters across the river. The dam is about 95 meters high and 460 meters across the river. The reservoir formed by the dam will extend 27 kilometers upstream, while the ground power station with four turbine units is located about 650 meters downstream of the dam crest. The project also includes four 316 meter long headrace tunnels, one spillway, three 447 meter diversion pipelines, and the upstream and downstream dams of the main dam.
Karot power company, a joint venture between Pakistan associated technologies and China Three Gorges South Asia Investment Co., Ltd., is responsible for the management of the dam, and China Three Gorges South Asia Investment Co., Ltd. provides about 93% of the funds for the project.
As an important participant in Pakistan’s energy sector, China Three Gorges South Asia Investment Co., Ltd. has five green space investment projects in Pakistan, all of which are clean energy, including hydropower and wind power, with a total installed capacity of more than 2.6 million KW. The company claims that it now accounts for about 9% of Pakistan’s installed power generation capacity.
The financing of karot project is arranged according to the proportion of 20% equity and 80% debt. International Finance Corporation (IFC) is another major financing participant besides Silk Road Fund, and the company has provided a loan of US $100million. In addition, the Export Import Bank of China and the China Development Bank will also provide loans to karot power company.
With the participation of IFC, the credibility of the project has been greatly improved. And ensure that the project will take into account many environmental issues. In 2010, the project conducted an initial environmental impact assessment and was approved the following year. When IFC evaluated the project itself, it submitted a further environmental and social impact assessment report, which determined that more regulations were needed to make the project meet the required standards.
Aftab alam, senior manager of environmental affairs of the Ministry of social and safety of the project, said that as a member of the World Bank Group, IFC had made every effort to ensure that the project met all international standards related to a safe working environment. Third party consultants also conduct quarterly monitoring to assess any possible negative impact on the environment.
After the completion of the project, it is expected to alleviate the power shortage problem that has plagued Pakistan for a long time. The hydropower station is located on the gilam River in the northeast of Pakistan, only 55 kilometers away from the capital Islamabad, with an installed capacity of 720000 kW. It can generate about 3.2 billion kwh per year, equivalent to about 10% of the total hydropower generation in 2017.
In addition to increasing much-needed electricity, the project is expected to pay US $23million in taxes to the government, and provide more than 2200 jobs and about 3500 long-term conventional jobs for local workers during the peak construction period. On May 25th, 2022, Pakistani Prime Minister Shahbaz Sharif said that karot hydropower station, the first hydropower investment project in the China Pakistan Economic Corridor, would provide clean and cheap electricity to Pakistan and promote its green development.
On June 29, the karot hydropower project in Pakistan was put into full commercial operation. The project has an investment of 1.74 billion US dollars and will provide electricity to more than 7 million households after it is put into use. The development partner of Pakistan karot hydropower project is…