$2.4bn tripartite agreement signed for Kohala Hydel Power Project.

ISLAMABAD: A tripartite agreement was signed here Thursday between a Chinese company and the governments of Pakistan and China for construction of 1,124 megawatt Kohala Hydropower Project costing $2.4 billion.

The signing ceremony, held at PM Office, was witnessed by Prime Minister Imran Khan, Azad Jammu and Kashmir Prime Minister Raja Farooq Haider, federal cabinet members, Chinese Ambassador in Pakistan Yao Jing, China Pakistan Economic Corridor (CPEC) authority, Chairman Lt. Gen. (R) Asim Saleem Bajwa and representatives of Chinese company.

It is the largest power sector investment of $2.4 billion in a single Independent Power Producer (IPP).

Kohala Hydropower Project, being built on Jhelum River in Azad Kashmir under CPEC, has been awarded to Kohala Hydropower Company Ltd (KHCL), which is a subsidiary of China Three Gorges Corporation (CTGC).

Addressing the signing ceremony, the prime minister while terming the agreement a "great step" towards foreign investment, said Pakistan should have invested in hydro power sector far earlier.

He said the country was progressing well when it had been producing hydro power until it started banking on...