PM hails accord on $2.4bn hydel project.

Byline: Syed Irfan Raza

ISLAMABAD -- A tripartite agreement was signed between a Chinese company and the governments of Pakistan and China on Thursday for construction of a 1,124-megawatt hydropower project at Kohala on the Jhelum river at a cost of $2.4 billion.

Prime Minister Imran Khan, who witnessed the signing ceremony at his office, termed the agreement 'the country's biggest-ever foreign investment'. Azad Kashmir's prime minister was also present on the occasion.

The accord represents the largest power sector investment by an independent power producer (IPP).

Speaking on the occasion, the prime minister said the government had resolved to focus on a 'green and clean power generation' through hydroelectricity in order to reduce dependence on imported fuel.

Mr Khan said the government welcomed the investment as it could set a precedent for the country to move towards sources of clean energy.

The event was witnessed, among others, by federal cabinet members, Chinese Ambassador Yao Jing, CPEC Authority Chairman retired Lt Gen Asim Saleem Bajwa and representatives of China's Three Gorges company.

The project, a part of CPEC, has been awarded to Kohala Hydropower Company (KHCL), which is a subsidiary of China's Three Gorges Corporation (CTGC).

The prime minister said Pakistan should have invested in the hydropower sector decades ago. 'The country was making good progress when it was producing hydropower, but then it started banking on imported fuel. This made not only the local industry non-competitive, but also put an additional burden on foreign reserves.'

Electricity generation through imported fuel, he said, had adversely affected the environment as Pakistan was placed by experts on a list of nine states most likely to be badly affected by climate change.

The prime minister told Raja Farooq Haider, the AJK Prime Minister, that the project would create much-needed jobs both during the construction as well as the operation phases.

'Next month is decisive'

At another function, the prime...