Days before Prime Minister Shehbaz Sharif’s visit to Beijing, a Chinese company has demanded the revival of the $2.5bn Kohala Hydropower Project (KHPP) in Azad Kashmir, which has been delayed by three years. The company, China Three Gorges Corporation (CTG), has requested an extension of the financial close deadline until September 2027 and seeks clarity on land procurement laws in AJK. The delay in the project was due to insurance issues with Chinese companies and disputes with the AJK government over environmental concerns. Despite the setbacks, efforts are being made to address key issues and secure funding for the project.
The CTG CEO has emphasized the commitment to advancing the project, highlighting the need for a three-year extension to secure financing and address outstanding technical, financial, and environmental issues. The company has already acquired a portion of the required land and is working to finalize the remaining acquisition under the previous Land Acquisition Act. With the push for an extension and resolution of key issues, the Kohala project aims to achieve financial closure by September 2027.
Source: Dawn, June 1st, 2024